Is the Philosophy of Dr. Inamori Compatible with JAL?

While it’s been some time since Dr. Kazuo Inamori was announced as the new chairman of Japan Airlines (JAL), there has not been enough meaningful dialog on the compatibility of his philosophy and that of the iconic company, itself the epitome of everything that is failing in traditional Japanese business structures.

Photo copyright Kyocera Corporation and used under Terms of Use as published on Kazuo Inamori official website.

Dr. Inamori’s Twelve Management Principles are themselves a reflection of his Buddhist values solidified from the time he spent as a Buddhist monk, yet overlayed upon the ubiquitous Confucian Work Ethic that dominates Japanese business culture.

Dr. Inamori’s Twelve Principles are in bold while the analysis follows each one.

1. Clearly state the purpose and mission of your business. Set high objectives that are noble, just and fair.

Virtue is one of the most important and critical themes in all of Confucianism. With the failure and now restructuring of JAL bringing to focus the many “forced businesses” (piety to JAL’s de facto ruler, the Japanese government) JAL had to endeavor, if Dr. Inamori has a clear mandate to rule, his own Mandate of Heaven, then he will be able to set a goal along the lines of “JAL is the premier airline that brings Japanese all over the world and the world to Japan in order to enable people to do business, relax, or explore.”

2. Set specific goals. Once targets are set, share them with all employees.

The “ruler to ruled” relationship is one of the Confucian key five relationships, or wulun. The noble objectives of Dr. Inamori’s First Principle and goals of the Second Principle only have meaning when the leader has ren, a kind of contagious intangible that is passed from the top down through good leadership. Assuming from his track record that he does posses ren, then the first two principles will likely be compatible with existing Japanese corporate frameworks.

3. Keep a passionate desire in your heart. Your desire must be strong and persistent to penetrate into your subconscious mind.

Meditation can be very important for Buddhists. Through meditation, the subconscious mind can be unlocked and even programmed. This can lead to the deconstruction of the ego and head toward enlightenment. There is a system in place now that encourages people to “fall into line” in a company and unquestioningly follow the leader or anyone older than oneself (filial piety). In this, the passion in the heart has already escaped Japan and trying to reignite it overnight may prove problematic.

4. Strive harder than anyone else. Work steadily and diligently, one step at a time, never relenting in tedious tasks.

Working hard and gathering achievements is a part of the existing structure in Japan. Japanese companies have a propensity for “sticking to the plan” (until a new plan is created), all related to the Confucian value of institutions and again to filial piety. No issues with this principle in its application.

5. Maximize revenues and minimize expenses. Measure your inflow and control your outflow; don’t chase profit, but let it follow your effort.

This principle is rooted in Buddhist values. Moderation, not excess, can help clear the way and help one get closer to enlightenment. However, this should conceptually fit within the Confucian Work Ethic so long as the leader sets a clear example of this through a good ren.

6. Pricing is management. Pricing is top management’s responsibility: to find that one point where customers are happy and the company is most profitable.

Pricing management is very Confucian by its nature, rooted in planning that is so important in institutions. However, the view of how it fits in harmony with the the greater picture is more of a Buddhist mentality. Yet, it should fit within a Japanese company without major issue.

7. Success is determined by willpower. Business management requires a persistent, “rock-piercing” will.

This is very similar to the Third Principle in some ways, and very Buddhist in its nature. In a Confucian system, success comes from the result of studying, working hard, paying respect to one’s elders (in this case, superiors), and daily etiquette. Attempting to insert a strong will into those many employees who have never exhibited such may prove very problematic. Promotion of having a “rock-piercing” may likely cause a kind of backlash.

8. Possess a fighting spirit. Management requires a more combative mentality than any martial art.

This is very similar to the Third Principle. The issue here is that Japanese in corporate environments are not combative. Rather than challenge, one must comply. Rather than create something new, one must follow. These are rooted in Confucian filial piety and attempting to turn managers into fighters may prove to be a problem.

9. Face every challenge with courage. Be fair and never deceive others.

Honesty is an important Virtue in Confucianism and has been ingrained in Japanese culture. There should be no issues with this principle.

10. Always be creative in your work. Innovate and improve continuously. Today should be better than yesterday; tomorrow, better than today.

While not directly Buddhist in this principle, it is one of the most incompatible pieces of the entire Twelve Principles. Japanese business culture follows a clear filial piety and traditional organization method, whereby for many companies promotions and raises are entirely time-based and not merit based. In traditional Japanese structures, one needs to respect the elders of the company and be patient and wait one’s turn. In Dr. Inamori’s Tenth Principle, one is encouraged to do entirely the opposite.

11. Be kind and sincere. Business is based on partnerships and must bring happiness to all parties.

Applied to what will now be called “Old JAL,” there is a grave issue here. Through its Confucian filial piety to its former owner, the Japanese government, JAL was forced into many businesses, with too many routes both domestically and internationally, and into doing internal, uncompetitive business with its group companies. They are out the window under this very Buddhist Eleventh Principle. One-sided partnerships have occurred and continue to occur in Japanese business, but by looking at a greater picture of harmony from a Buddhist perspective, Dr. Inamori can tell that such partnerships only lead to decay. This will work very well for the “New JAL,” but prove detrimental to the many group companies JAL was supporting as well as domestic airports in Japan that JAL was forced to support without any demand.

12. Always be cheerful and positive; hold great dreams and hopes in the pureness of your heart.

This is rooted in Buddhism, another thing one can do on the path to achieving enlightenment. Dreaming and hoping, however, do not occur much within the lower levels of Japanese companies due to the institutions and filial piety in place. One of Dr. Inamori’s “philosophy keywords” is that “everyone is a manager.” This idea may be grossly incompatible with a very traditional company such as JAL, where not everyone can have hopes or dreams.

Back to the question, Is the Philosophy of Dr. Inamori Compatible with JAL?

The answer: very likely, but only so long as he does not rapidly force followers to be leaders, the apathetic to be passionate, or the complacent to be fighters. Some of his ideas are outside the scope of “what has been” in Japan, yet because he isn’t trying to change absolutely everything, he isn’t a radical but rather an innovator.

Let’s see where JAL heads next.