MATSUSHITA LEADERSHIP-BOOK REVIEW ABOUT THE AUTHOR John P.

Kotter is The Konosuke Matsushita Professor of Leadership at The Harvard Business School. He is a Graduate of MIT and Harvard and has been on the Business School acult! since "#$%. In "#&'( at the )*e of Thirt! Three( he +as voted tenure and a full Professorship( ,akin* hi, one of the !oun*est people in the histor! of the -niversit! to be so honored. Professor Kotter is the )uthor of the General Mana*ers ."#&%/(Po+er and Influence0 Be!ond or,al )uthorit!."#&1/() orce or 2han*e0 Ho+ leadership differ fro, ,ana*e,ent ."##'/2orporate 2ulture and Perfor,ance ."##%(+ith Ji, Heskett/( The 3e+ 4ules 5 Ho+ to succeed in toda!6s post corporate +orld ."##1/( and leadin* chan*es ."##7/(he also created t+o hi*hl! acclai,ed e8ecutive video6s one on leadership ."##"/ and one on corporate 2ulture ."##9/(as +ell as en educational 2:; 4<M on initiatin* chan*e ."##$/.his article +ritten over the past t+ent! !ears for the Harvard Business revie+ have sold a ,illion and half reprints. The ,an! honors +on b! professor Kotter include an =88on a+ard for innovation in *raduate business school curriculu, desi*n( a Johnson( S,ith > Kinse! a+ard for ne+ perspective in business leadership( and a McKinse! a+ard for best business revie+ articles. Professor Kotter has tau*ht in both MB) and =8ecutive pro*ra,s at Harvard and is a fre?uent speaker at top ,ana*e,ent ,eetin* around the +orld.

SUMMARY B! ,an! standards he didn6t look like a *reat leader. ) picture of Konosuke Matsushita sho+s an uns,ilin* !oun* ,an +hose ear stick out( +ho is neither ,ore than five feet five inches tall nor +ei*hted ,ore than "91 pounds. He didn6t e8cel at public speakin* and in his later !ears *re+ increasin*l! frail. He rarel! displa!ed speed of li*ht intellectual skills or +ar,ed an audience +ith hilarious on ecolotes( nevertheless he did +hat all *reat leaders do ,otivate lar*e *roups of individuals to i,prove the hu,an condition throu*h the Matsushita =lectric Industr! .M=I/ @ 71 billion a !ear *roup +ith brands like 3ational( Panasonic( etc. Konosuke Matsushita +as born in a villa*e called Aasa,ura( t+o hundred and fort! ,iles to the south of <saka cit! 3ove,ber %$( "&#B. He +as the inal Siblin* of a ten ,e,ber a,il! of ,iddle class Stature. Konosuke Matsushita6s father o+ned "1' acres of land +orked b! seven tenant far,ers. In his earl! !ears life +as peaceful and carefree for Konosuke Matsushita till "&## +hen the fa,il! econo,ic fortunes collapsed. The ten ,e,ber fa,il! +as forced to ,ove into a s,all slu, apart,ent nearb! Aaka!a,a( at the a*e of nine he +as send to <saka cit! to +ork si8teen hours a da! and live +ith his e,plo!er but casualties affected the fa,il!( and +ithin a !ear fro, <ctober "#'' to )u*ust "#'"( Konosuke Matsushita lost three of his siblin*s due to infectious diseases. Konosuke Matsushita at the a*e of nine started +orkin* as an apprentice in <saka. His initial duties +ere that of a household servant( and then he started +orkin* on the polishin* of the product Hibachi for +hich he +as paid 1 sen t+ice a ,onth +ith free food and sta!. )fter +orkin* for 9 ,onths he Coined a bic!cle shop( +herein he +orked as an unskilled labour. In

"#'7 Konosuke Matsushita lost t+o ,ore of his siblin*s and his father as +ell the fa,il! +as reduced to five. He +orked at the Bic!cle shop till the a*e of "1. So,e+here in "#"' Konosuke Matsushita approached a Brother in la+ and asked help in obtainin* Cob +ith an electric li*ht co,pan! .This landed hi, in the <saka =lectric li*ht 2o. His Cob +as to assist senior e,plo!ees in the +irin* of businesses and ho,es for li*htnin*. Konosuke Matsushita6s Cob +as to pull a t+o ; +heeled cult loaded +ith tools and fi8tures( provided help +hen asked( and *enerall! be a *ood servant. His salar! +as one Den per ,onth( he attended ni*ht classes at Kansui 2o,,ercial and Industrial school but after t+o !ears he ?uit. B! the ti,e he +as si8teen( Konosuke Matsushita6s +as ,ana*in* and directin* other people( and beca,e a ore,an at the a*e of nineteen. In "#"9( three !ears after he Coined the electric co,pan! he lost his ,other and a sister( the fa,il! of ten +as no+ do+n to three( Konosuke Matsushita and his t+o sisters. In Ma! "#"1 Konosuke Matsushita *ot ,arried to a !oun* +o,an Mu,eno Iue +ho +orked as a do,estic servant at a ,erchant fa,il! in K!o,achibori. )t the ti,e of ,arria*e Konosuke Matsushita +as t+ent! seven and his +ife nineteen !ears old. In "#"$ Konosuke Matsushita desi*ned a li*ht socket superior to the one ,ade b! his co,pan!( but his boss refused to accept it. :isheartened b! it he ?uit the Cob and decided to ,anufacture his o+n sockets and ,arket it throu*h another co,pan!. Konosuke Matsushita be*an his business +ith savin*s of one hundred !en and four assistants. The first +as his +ife Mu,eno( second +as Isaburo Ha!ashi( a for,er co;+orker and friend( third +as 3obustro Moriter another co;+orker and last Eoshio Iue( his +ife6s brother. Aith no revenues and ver! li,ited financin*( the! scra,bled to ,anufacture( assistance finall! ca,e fro, a friend. Sa,ples +ere ,anufacture but received poor reception fro, the +holesalers. To add to the ,iser! Ha!ashi and Morita left to take Cob else+here. But the! didn6t *ive up. inall! the! *ot an order of one thousand insulation plates to +hich Konosuke Matsushita a*reed +ithout hesitation( the first order +as co,pleted in ti,e and the purchaser did like the ?ualit! hence a second order of t+o thousand plates +as placed. Konosuke Matsushita started producin* electrical attach,ent plu* in addition to the above t+o products after ,ovin* to a bi**er facilit! Konosuke Matsushita produced t+o +a! sockets. The e8clusive ri*hts to ,arket it +as sold to a +holesaler na,ed Doshida for a 9''' Den loan to inance increased production capacit!. But ,iseries continued and in "#"# t+ent! ei*ht !ear old sister )i passed a+a! and t+o !ears later I+a died. The fa,il! of ten +as reduced to one. He +as the onl! survivor. Matsushita =lectric Industr! .M=I/ e8panded in "#"#( "#%'( "#%" facin* increasin* co,petition fro, ne+ entrance in the electrical products. Matsushita initiall! +ould hi,self desi*n the products( his ,ain focus +as custo,er satisfaction .He believed that if the custo,ers +as satisfied +ith his product he +ould co,e back a*ain. He intended to build a relationship +ith the custo,er. B! "#%%( the fir, +as introducin* one or t+o products ever! ,onth( better but cheaper +as the usual strate*!. In "#%%( he invented batter! F po+ered bic!cle la,ps. To distribute it he developed a ne+ ,arketin* strate*! for not askin* for ,one! fro, retailers until the product +as sold. Aithin +eeks sales Sk!rocketed. The focus no+ shifted on ,ass production and ,ass ,arketin*. The la,ps +ere sold under the brand na,e G3ationalH. Konosuke Matsushita had a *irl born in "#%' and then in "#%7 a bo! +as born to Mu,eno. But unfortunatel! the bo! died in a !ear. In "#%# the *reat depression hit the +orld. It hit electrical suppl! ,anufactures of Japan hard and fast. =ven thou*h the econo,! +as +eak Konosuke Matsushita to enter the radio ,arket. Matsushita =lectric Industr! sold its first radio in )u*ust "#9'.production of 3ational 4adio6s increased fro, "''' in "#9" to %(9$(''' in "#9&. B! "#B% Matsushita =lectric Industr! +as the lar*est 4adio ,anufacturer of Japan. Matsushita =lectric Industr! +as no lon*er a s,all enterprise. It ,anufactured ,ore than t+o hundred products in four different cate*ories +irin* fi8tures( radio( la,ps and dr! batteries. This +as the ti,e Konosuke Matsushita started appreciatin* the value of reli*ion and God in his life. In "#99(

Konosuke Matsushita reor*aniIed the fir, b!;products. :ivision one ,anufactured radios division t+o focused on La,ps and batteries( division three produced +irin* i,ple,ents and s!nthetic resins( division four handled electric heatin* appliances;irons( heaters. =ach *roup operated like a separate entit! +ith different production and sales distribution net+orks. B! "#9'( the business e,plo!ed around 71'' people. )t the end of the decade Konosuke Matsushita ,arried his onl! dau*hter to Masaharu Hirata( a *raduate of the la+ depart,ent of Tok!o -niversit! +ho later on +ent to beco,e the chair,an of Matsushita =lectric Industr!. )round "#9$( Aorld Aar II started and Matsushita =lectric Industr! +as forced to help the Japanese ,ilitar! b! ,anufacturin* products accordin* to their re?uire,ents. Konosuke Matsushita considered this as a dut! to+ards the 3ation and created an aircraft and shipbuildin* co,pan!. But the Japanese lost the +ar and the allied force took the control of it. Matsushita =lectric Industr! +as forced to cease production and Konosuke Matsushita +as asked to ,ove out of the co,pan! board. It +as not until "#1'( that both Konosuke Matsushita and his co,pan! +ere allo+ed to operate freel! a*ain. It +as a process of rebuildin* the fir, fro, scratch as all +as lost in the +ar. But Konosuke Matsushita stood up to the challen*e. In "#1%( Matsushita =lectric Industr! si*ned a Coint venture +ith Philips to provide technolo*ical kno+ ho+ of its product( ) Philips Matsushita factor! +as built in <saka to provide television picture tubes florescent li*hts and other electrical products. In "#1# a sales co,pan! +as established in -nited States and product +ere sold under the brand na,e Panasonic. KM founded t+o institutions0 one +as the PHP .peace and happiness throu*h prosperit!/ in "#B7 and the other Matsushita Institute of Govern,ent Mana*e,ent .MIGM/ in"#$#. He spent later part of his life in this institute stud!in* hu,an nature +ith research students. He passed a+a! in the sprin* of "#&# +herein over fort! thousand people attended his funeral. The president of -nited States in a condolence ,essa*e of his fa,il! called hi, on inspiration to people around the +orld.

ANALYSIS Konosuke Matsushita Introduced the 2oncept of Marketin* in 4eal Sense. Thus the lessons learnt fro, it a,ount ri*ht fro, treatin* people !ou do business +ith as if the! +ere a part of !our fa,il!. Prosperit! depends on ho+ ,uch !ou understand the people +ith +ho, !ou do business( do not sell +ho,soever *oods the! are attracted to( but sell the, *oods that +ill benefit the,. Ahen !ou +ork in a co,pan! !our efforts should be +aste reduction( as an! +aste +ill increase the price of the product b! that ,uch. The ,ission on a +hole for the ,anufacturin* or*aniIation should be to overco,e povert!( to relieve societ! as a +hole fro, the ,iser! of povert! and brin* it +ealth. Purpose of an or*aniIation should be to *enerate +ealth not onl! for the o+ners but also for ever!one.

)lso possessin* onl! ,aterial co,forts in no +a! *uarantee happiness. Spiritual +ealth is re?uired to *et true happiness +hich can be seen fro, the i,prove,ent in productivit! of or*aniIation as +ell as +ellbein* of societ! after the start of ,ornin* pra!ers b! the e,plo!ees of M=I. Thus Business,en should be able to create a societ! that is spirituall! rich and ,ateriall! affluent. <ne of the ,ost i,portant lessons is the dedication( deter,ination and hard +ork of the person. Matsushita bein* born in a poor fa,il! +orkin* for si8teen hour6s a da!. 3ot onl! did he suffer econo,ic hardships but also personnel ones loosin* all the ,e,bers of the fa,il! +hen he +as in his t+enties( but the essence of it is not to be let do+n b! obstacles in !our life but to fi*ht +ith the,. )lso he left off his +ell pa!in* Cob to start up his o+n co,pan!( +hich he ,eans he had the insi*ht of his capabilities. Thus one thin* +hich can be learnt fro, this is that a person should al+a!s drea, and ai, hi*her0 !ou should not be satisfied b! +hat !ou in !our hand( !ou should tr! and achieve +hat is possible. <ne ,ore point is of risk takin* abilit!( as risk is proportional to returns. But before takin* risk a person should look at +hether he is capable of it. Thus it should be a calculated risk +hich has to be taken Konosuke Matsushita could have sta!ed at the bic!cle shop and *ot a better than avera*e ,iddle;class life( but he did not. That ,eans he had a vision +hich is to be leant fro, this. That +hatever is present to hi, did not satisf! hi,. Ae should break out fro, an! such relationship to e,bark on Courne! even if the path is uncertain. )nother thin* +hich is i,portant is to be independent of others. It ,eans !ou should be self sufficient and should not e8pect an!thin* fro, others !ou should cope +ith difficult ti,es and benefit fro, the,( like the fa,ous state,ent Jthat +hich does not kill ,e( ,akes ,e stron*er.6 )lso +e can see that entrepreneurial ventures offer ,ore control over ones destin!( thus allo+in* chan*in* the status ?uo and per,ittin* a person to +ork for hi,self rather than his boss. So,e of the traits a person should have to be a successful =ntrepreneur( are *reat co,,ercial Cud*,ent( an instinct far dealin* +ith people( keen intelli*ence( and a charis,atic personalit!. But ,ost i,portant is the Ieal for +ork +hich if not present then others are ,eanin*less. )nother i,portant thin* is ,otivation in a person6s life. Aith little ,otivation can never start a business( *iven that the proble,s he +ould encounter. =ven if !ou do face easil! success it should not satisf! or reduce !our a,bitions( but on the contrar! it should increase !our desires. Dou should onl! vie+ success as a proof of bein* on the ri*ht track > failures as inevitable burdens that one ,ust suffer in the life. )nother aspect of business is keepin* a cost lo+ that does not ,eans treatin* e,plo!ees poorl!. 4elationship +ith supplies and distributors should also be close like a fa,il! and not for,al or at an ai,s len*th. <ne i,portant thin* is to learn fro, ,istakes. It is oka! to co,,it ,istakes or errors in the life but ,ost i,portant is to learn fro, those ,istakes; and not to ,ake the, in future. It is also seen that success in individuals creates ri*idit! and e*otis, and not self. =8a,ination and search for still ,ore i,prove,ents +hich should be the case. <nce a person occupies a responsible position he should al+a!s pa! close attention to the proble,s that are crucial in brin*in* a certain task of co,pletion. Dou ,ust e8a,ine the, in a free or creative fra,e of ,ind( to find a +orkable ans+er +ith convention that it can be done rather than to +aste ener*! +orkin* about its difficult!. Dou should not let difficulties *et better of !ou. )dversit! should ,ake person stron*er. <ne ,ore i,portant aspect that co,es out of the book is of spiritualit!. It ,akes a person open ,inded and less prone to +orr!. Pra!in* and +orshippin* could let !ou to discover the Co! of reli*ious faith. It ,akes a person feel that his life is +orth+hile. Thus if an or*aniIation

is ,ake ,ore ,eanin*ful like a reli*ion( people could be both ,ore satisfied and ,ore productive. ) person should al+a!s search so,e ,eanin* in his life( it +ould not necessaril! be ,one! but so,ethin* that +ould sooth his soul. ) person should have set of values +ithout +hich life +ould have no ,eanin*. Kalues +ould be service to the public( fairness and honest! in dealin*s( tea,+ork for the co,,on cause unitin* effort for i,prove,ent( courtes! and hu,ilit!. ) person should be *rateful for all the blessin*s and kind ness that he +as received either fro, parents( teachers( friends or fello+ hu,an bein*s. )nother thin* that a person should learn is to be lead b! e8a,ple. Gettin* !our e,plo!ees to+ards a concern obCective to re?uire a sincere initiative effort fro, !our side. Ahen !ou are in a position +here !ou lead a *roup !our thinkin* should be on a broader perspective as to ho+ decision +ould affect the or*aniIations as a +hole rather thinkin* in a narro+ +a!. 3o ,atter +hat kind of Cob !ou have( !ou should think of !ourself as bein* co,pletel! in char*e of and responsible for !our +ork( like bein* the president of !our o+n co,pan!. B! doin* this not onl! the +ork +ill be done perfectl!( but also ne+ discoveries +ill be ,ade also it +ill *reatl! assist !our self;develop,ent. )lso !our st!le of leadership should be ,i8ed +ith tou*h and *entleness to be used accordin*l!. ) leader should al+a!s have faith and trust in his e,plo!ees. This is a ver! stron* point that +ould put all the *roups in the sa,e direction. =ver! sin*le person !ou ,eet is !our custo,er. Treat hi, as a fa,il! ,e,ber0 !ou should al+a!s live +ith the ideals of si,plicit!( fru*alit! and hu,anit!. <ne point to be noted is that at the ti,e of +ars or natural cala,ities service to the nation should beco,e !our first priorit!( ever!thin* else +ould be then taken to backseat. <ne ,ore i,portant aspect is related to a*e. ) person should not consider hi,self old till he is !oun* at heart. ) person should be as open as he is throu*hout all the phases of his life. ) person does not *et old till he deserts his values. ) ,!opic point of vie+ and a closed ,ind creates *reat dan*ers. ) person needs to have an open ,ind to ne+ ideas and be fle8ible. <ne of the ,ost i,portant factors is the fir,6s ,ana*e,ent and e,plo!ees attitude. ) person needs to believe in the co,pan!6s core concepts and at the sa,e ti,e should be receptive and fle8ible. ) person needs to be hu,ble as he +ould not be arro*ant and reckless. He +ould listen to others and do +hat is ri*ht. Ae ourselves are responsible for our o+n destin!. <ne road +ould lead us to peace happiness and other to+ards chaos and self destruction. Thus a leader beco,es a *ood role ,odel +hen he is hu,ble( respectful( and open to ne+ e8periences( dili*ent( hard+orkin*( and opti,istic. In the final anal!sis it is the people +ho ,ake it happen( not the leader. But *ood leadership +ill help to ,a8i,iIe their potential.