Do You Know the Japanese "god of Management"?

The man who is still now widely respected across the world.

 

Rising from the Ashes, Became a Giant

Because of poverty, that man quit school and worked away from home at the age of 9. Despite that harsh environment, he worked diligently and started his own business at 22.

Small company, however, he expanded it into a large corporation boasting over 100,000 employees.

That very man is the founder of MatsushitaElectric, Konosuke Matsushita.

Matsushita Electric has grown to become one of Japan's leading electronics manufacturers. Today, the company, which has changed its name to Panasonic, employs more than 240,000 people. 

Not only because of his success, but his character has made Konosuke a “god of management.”

Let us dive into his story!

 

Story 1: During the Great Depression, He Did Not Lay off a Single Employee

Following the Great Depression in 1929, numerous Japanese companies went bankrupt. Matsushita Electric, founded by Konosuke, was no exception, with sales plummeting to less than half.  

Given that situation, the company's executives suggested a staff-reduction plan to save the company. However, Konosuke chose a different path.

“I want to make Matsushita even bigger,” he said. “If we hire and fire people for the company's own reasons, the workers will feel insecure. That is something we cannot stand.”

Konosuke did not lay off a single worker and even paid full wages. On top of that, he cut production in half, reduced the factory workday to half, and asked employees to work on their days off to sell inventory. As a result, the company achieved a miraculous recovery.

 

Story 2: Even Under Occupation, He Protected His Employees

After World War II broke out in 1939, Matsushita Electric produced weapons following the demands of the Japanese military.

In August 1945, Japan surrendered. Amid defeat overtook Japan, Konosuke declared to become a pillar of Japan's recovery.

He told all his employees, “Production is the foundation of recovery. Let us revive the traditional Matsushita spirit and devote ourselves to rebuilding the nation and promoting culture.”

These aspirations for the future inspired his employees. In October, only two months after the end of the war, all plants resumed production.

The following year, however, Konosuke was virtually ordered to dismantle the company, by the United States-led Allied occupation forces, which had been governing Japan. He was accused of being responsible for weapons production during the war.

Even facing that absolute power, Konosuke did not give up. After persistently negotiating over 50 times, he convinced the occupation forces to withdraw their order.

 

Story 3: His “One Condition” for a Leader

One day, when asked by a reporter, Konosuke described “one condition” for a leader.

“Well, if I were asked to name only one requirement for a leader, it would be the ability to use people who are better than you. This is enough.”

Don't you find it remarkably humble for such an outstanding figure who established a large company?

Konosuke always respected his employees, regarding them as better than himself.

 

In the Next blog: “Tap Water Philosophy” Konosuke Advocated

In our next blog, we'll explore more stories and delve into his “tap water philosophy.”

See you again next time!

 

By Miriam