Ethics and innovation - there is a lot to learn about innovation management from Japan!
Japanese culture and society have always fascinated me and exerted a strong attraction with their spirit of common good, respect and mutual goodwill. For over 30 years, I have been intensively involved with the country, people and economy of Japan, both privately and professionally. I use my passion and knowledge to take a deep dive into Japanese corporate cultures with this blog post.
When searching for innovative ideas and solutions, you don't just have to look at the present or at products. Inspiration can also be found in other cultures or ages:
Ethics meets Innovation
What do I mean by that? Japanese companies are known for their strong corporate philosophies and principles, which were often drawn up by the founders themselves and are intended to become second nature to the workforce. That may sound drastic to us Europeans, but if we look at the principles, they are geared towards humanity and good cooperation. With the involvement of the entire workforce and the idea of integrity and "bonding together", I describe these principles as highly innovative - especially given that we are talking about the period from 1870 to around 1950.
Mitsubishi as a pioneer
Mitsubishi's "Three Corporate Principles" were introduced by Yataro Iwasaki, the founder of Mitsubishi, in the 1870s (Link to Philosophy and Principles):
Shoki Hoko: Responsibility towards society
Shoji Komei: Integrity and Fairness
Ritsugyo Boeki: Global Understanding Through Business
Iwasaki Yataro, the man of unconventional ways
As the son of a farmer, he understood early on what was important for social advancement and bought himself a samurai status at a young age. He found his way into business through relationships with a clan, whose high debts he was able to reduce as office manager in Nagasaki - through adventurous routes. He always found solutions to increase his influence or his property and to successfully conduct trade through skillful negotiations. This included unusual communication strategies as well as going out for drinks in the evening with his negotiating partners. In 1873 he founded the predecessor of Mitsubishi, a trading company. He was only 50 years old when he died shortly afterwards.
His personal success and the success of Mitsubishi are based largely on Iwasaki's ability to constantly find new ways for his networks and trade, not to commit to one business or one "way of doing things" and his instinct for convincing business partners. He was a flexible character who thought outside the box.
What is special about Mitsubishi’s principles?
These principles emphasize social responsibility, ethical behavior, and global thinking. In particular, the global perspective at a time when globalization was neither a dominant macro trend nor a well-known buzzword shows that Yataro Iwasaki was way ahead of his time.
By emphasizing social responsibility, a fundamental value of Japanese tradition is taken up and the efforts are directed towards improving the way we live together. We will also find these principles in the other companies that I introduce in this blog post.
Incorporating ethical considerations into its business strategy has helped Mitsubishi create a close-knit, reliable culture among its employees and gain trust and respect in the business world.
Why do Iwasaki's principles promote innovation?
From the basic principles that Iwasaki established, I draw the following suggestions for innovation work:
The presence of explicitly humanitarian principles in innovation strengthens the sense of identity and creates a close-knit community among innovators.
Standing up for an idea as a person and representing it with a strong voice is the basis for the idea's success and effectiveness. Today, a basic principle of innovation according to the 5 Disciplines of Innovation (link to a summary) states that every idea needs a “champion” or driver, i.e. someone who drives it forward in a company and ensures that it continues to be worked on.
Being open to new approaches and content, even if they don't quite fit with what you've done before, is a prerequisite for developing your own business. Most ideas change during the innovation process because new insights are incorporated. This is not failure, but learning.
If no one else is doing things that particular way, then it's definitely reason enough to try it.
Sony as a bold, extremely agile innovator
Sony was founded by Masaru Ibuka and Akio Morita in 1946. At Sony, too, I see a cornerstone for the incredible rise and innovative power in the strong management principles of the founders Akio Morita and Masaru Ibuka, which are focused on freedom and the strengths of Japanese culture:
Independence: All relevant building blocks and elements should be developed in-house in order to be independent of suppliers and patent claims.
Innovation: The products should be original and cost-effective.
Quality: High quality standards should always be maintained.
Internationality: From the beginning, their goal was to be successful internationally and not just concentrate on the Japanese market.
Morita in particular was considered a charismatic, courageous and innovative manager
He was also famous for his drastic and provocative management methods. Or rather notorious, if you believe the following anecdote that I repeatedly heard during my Japanese studies: The goal was to bring the smallest possible video camera to market. When the engineers presented Morita with a new prototype of the umpteenth iteration, he asked for a bucket of water . He threw the camera in, to the horror of those engineers present, and air bubbles rose up. He then said to his engineers: "Air is rising, so it's still too big!"
Morita embodied the prototype of a "transformational leader". Transformational leadership is characterized by the ability to inspire and motivate employees and to achieve more than what is expected of them. Leaders who cultivate this style put the needs of their employees first, encourage them to think critically and promote an environment of trust and cooperation.
Morita always focused on competitiveness and efficiency to generate profits. At the same time, he recognized and supported humanity to strengthen competitiveness, so that employee-oriented "familism" and shareholder-oriented "meritocracy" coexisted in his management philosophy.
As an innovation manager, I find the following features of Morita’s management style particularly inspiring:
A clear and convincing vision cannot be emphasized enough (also see Mitusbishi)
Promoting and supporting the courage of the workforce to look at things differently/completely new – and thus also to accept mistakes
Investment in the personal development and growth of employees
Constant adaptability and the willingness to react quickly to market dynamics
Maintaining strong relationships with stakeholders, including employees, customers and partners, to ensure long-term success
Awakening the spirit of innovation with crazy, unpredictable actions
Panasonic as a prime example of how ambition can be combined with the common good
The company was founded by Kônosuke Matsushita together with Toshio Iue (later founders of Sanyo ) as Matsushita Denki Kigu Seisakujo (松下電気器具製作所, Matsushita Electrical Equipment Works).
Kônosuke Matsushita, the philosopher among company leaders
Kônosuke Matsushita was intensively involved with philosophy and the question of how social responsibility can lead to prosperity. The combination of social responsibility, interpersonal respect, the pursuit of prosperity for all, traditional Japanese values and the responsibility as a manager of a large corporation made him someone special. This unusual combination of seemingly contradictory approaches underlines how modern and innovative his thinking was (a Link to a blog post with more background information).
In 1929, Matsushita introduced an innovative management practice under the motto of harmony between corporate profit and social justice . Shortly thereafter, in 1933, Matsushita announced his seven management principles:
1) Public Service
2) Justice and honesty
3) Cooperation and teamwork for common goals
4) tireless efforts to improve
5) Politeness and modesty
6) Compliance with the laws of nature
7) Gratitude for blessings
In retirement, Matsushita focused on further developing and explaining his social and business philosophies and wrote 44 books. One of his books, Developing a Path to Peace and Happiness Through Prosperity , has sold over four million copies.
What can we learn from Panasonic?
The combination of business objectives on the one hand and the focus on modesty and fairness within the team on the other particularly is admirable and motivating. I is possible to combine high economic demands with human compassion.
Summary
Ethic and innovation: Big in Japan...
It is definitely worth studying the basic principles of Japanese companies and the mindset of their founders because they have combined ambition, the pursuit of financial success, a humble, collaborative way of working and Japanese values in a unique way.
Humanity, courage, perseverance and team spirit are what characterize the incredible innovative power of Mitsubishi, Sony and Panasonic.
What other values should innovation work be based on if innovations are supposed to make our lives better?
Do you agree? What do you think? What examples do you know?
Links
Mitsubishi
Sony
Panasonic
Innovation principles
Please note: This text is translated into English by using Google Translate - I apologize for any mistakes in this text I may have overlooked.
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