Steps to Leadership The Center for Asia-Pacific Exchange

Before you begin From the picture below, what sort of leadership qualities do you think Akio Morita possesses? ______

IF MORITA AKIO HAD BECOME JAPAN’S “BUSINESS PREMIER” HANADA HIDEJI

The passing of Morita Akio, economic ties.” In its December 7, Key Terms: honorary chairman of Sony 1998, issue Time magazine selected Corporation, on October 3 made 20 individuals as “the most Cosmopolitan: a person who is free from local, provincial, or the headlines across the world. The influential business geniuses of the national bias extensive coverage that all the century"; here, too, Morita had the Shoddy: of poor quality major media gave to this news honor of being the only Japanese to demonstrates just how recognized go on the list, alongside such figures Testy: irritably impatient Morita “the cosmopolitan” was as Henry Ford and Bill Gates. Taboo: prohibited or excluded overseas. The New York Times on from use or practice the same day bestowed on him the Ifs are taboo in discussions of

highest praise, writing that he history. But if Morita had not succumbed to illness, the shape of “changed the world's image of the term ‘Made in Japan' from one of Japan's business world would have parasols and shoddy imitations to been utterly different from the one of high technology and high mere shell that it is now. reliability in miniature packages." THE POST NEVER TAKEN CNN noted his role in “helping to make Sony into one of the most It was six years ago, on November easily-recognized brand names in 30, 1993, that sudden tragedy Akio Morita with Sony co-founder the world,” while Reuters regretted struck Morita. Early that morning Masaru Ibuka the death of “a key player in trying he was on an outdoor court of the to smooth often testy U.S.-Japan

\\cape\_data\Leadership\Leadership Handouts\Steps to Leadership (Reformatted handouts)\Akio Morita.docx and informed him that Morita elders ruled the roost, he was not Key Terms: would have to forgo his public so well thought of. True, he was Hemorrhage: a great discharge of activities. reputed abroad as “the best-known blood, as from a ruptured blood Japanese in the United States.” But vessel There was good cause for Ohga's unlike long-established corporate Forgo: to do without; give up haste in reporting the names like Toshiba and Nippon Inauguration: the act or ceremony circumstances to Hiraiwa. Having Steel, Morita's Sony was a rank already stepped down from his post of introducing someone into office newcomer, having only emerged Head and shoulders (over): greatly as a Keidanren vice-chairman, after World War II. superior to Morita's role in the organization at Venerable: old and respected the time was merely that of a senior There was also a characteristically Hand in hand: closely associated; member, serving as one of several Japanese sense of jealousy toward concurrently vice-chairmen of the Board of Morita's personality, which would Councilors. But earlier, Hiraiwa had frequently become the center of a Internationalization: the process of making something international privately asked Morita to succeed media storm. The older generations him in the post of Keidanren of executives were used to doing chairman. He was hoping to business hand in hand with their announce this decision soon after colleagues, and they almost “A company will get nowhere if all the 1994 New Year and hand the inevitably felt put off at sights like of the thinking is left to management.” baton to Morita in May. The fact that of Morita coming down the -Akio Morita that Morita would have to decline ramp alone from the Sony the offer meant that the selection corporate jet, his gray hair waving of a successor would go back to in the wind, on his way to attend Shinagawa Prince Hotel in Tokyo, square one. Realizing the gravity of the Japan-U.S. Business Conference. ready to enjoy tennis with his the situation, Ohga had hurried to Japanese people are generally not younger brother Masaaki, then Hiraiwa's office. chairman of Sony Life Insurance Co. good at expressing their opinions. Soon after starting, however, the Just prior to this turn of events, Morita, by contrast, outspokenly older brother complained that he Morita had been fully ready for the put his thoughts into words. This did not feel well, and the game was next step up. He had already given spirit of self-assertion should be the called off. His condition showed no up the post of Sony chief executive top criterion for Japanese signs of improving even after he officer to Ohga and was steadily executives in the age of returned home —his movements preparing the company for his internationalization, but Morita were awkward, and he could not inauguration as chairman of tended to be seen as a showoff. speak properly. Morita was rushed Keidanren. For Morita, who had Thus his position within domestic by ambulance to the Tokyo Medical been called a “new leader" of the business circles had been weighed and Dental University, where he business world since his is young down by anti-Morita sentiments, was diagnosed with a brain days, his nomination in 1993–well even though he was long hemorrhage and underwent four after he had turned 70—was long recognized as an international hours of surgery. Two days later overdue. businessman representative of then Sony President Ohga Norio Japan. Morita stood head and shoulders visited Hiraiwa Gaishi, the Tokyo over other Japanese business Morita's misfortune came just when Electric Power Co. executive who at figures in terms of his renown the wind of globalization had finally the time was the chairman of overseas and popularity as a media cleared away the mist that had Keidanren (Japan Federation of icon, but in the domestic business been obscuring his course and was Economic Organizations), the community, where venerable about to propel him to the country's top business organization,

\\cape\_data\Leadership\Leadership Handouts\Steps to Leadership (Reformatted handouts)\Akio Morita.docx community deteriorated to a salon- international figures. Morita most Key Terms: like state and some people began likely was the only executive in

Premiership: leadership insisting that such a community was Japan at the time who could chat Receptacle: a container, device, useless. From around this time casually over the phone with such etc., that holds something Keidanren came to be called the individual as former U.S. Secretary Salon: an assembly of distinguished “buddy club” and transformed itself of State Henry Kissinger and former or prominent guests into a policy proposal organ that did British Prime Minister Margaret

Whitewash: to cover up or gloss little more than make whitewashed Thatcher. over the faults or errors of remarks. “Policy proposal organ" Sony's name grew legendary with Marshal: to arrange in proper may sound grand, but without the the worldwide hit of the Walkman order; arrange clearly initiative to ensure that its and the acquisition of Columbia Acquisition: the act of gaining proposals are reflected in real-life possession of something government policies, its voice is no Pictures Entertainment Inc., now Sony Pictures Entertainment Inc. In Hackneyed: not fresh or original better than that of a tiny dog the United States Morita's 1986 yapping in the wind. Morita, by premiership of Japan's business contrast, was an individual who had book Made in Japan (which was world. Morita must have been the power to boldly deliver written in English with the journalists Edwin M. Reingold and utterly mortified. For the Japanese demands to the government, as economy as well, it was a serious well as the ability to marshal Shimomura Mitsuko) became a blow to lose the presence of a arguments against American bestseller, and Morita was recognized as a figure representing business leader who was familiar counterparts directly in English and with and could clearly say no to the cross swords with them on equal the Japan of the latter 1980s, at the United States. terms. He presaged the birth of an peak of its economic prowess. Americans paid close attention to unprecedented type of Keidanren A “FRIENDS LIST” OF OVER 6,000 the statements of this man who chairman. confidently laid out his views it in In both politics and business, there English. are two types of people who aspire to become top leaders. On the one In discussing Morita's character as a hand, there are those for whom businessman, one more aspect that reaching the top is the ultimate goal cannot be left out to of the picture in itself. Such individuals, once they is a study group he founded in July have settled in prominent posts, 1977. The previous year saw the end up serving as passive birth of the New Liberal Club, receptacles for the harmonious founded by legislators who broke blending of the energies within away from the long-ruling liberal their organizations. On the other Morita's power drew, first of all, Democratic Party with the aim of hand, there are those who aim to from his broad personal creating a new conservative force become leaders as a means of connections both in Japan and free from corruption. Many were giving effect to the principles or across the world. His personal tired of the hackneyed policies that they believe in. Morita computer in the chairman’s office maneuvering among the factions of was undoubtedly of the latter type. at Sony stored a “friends list” the LDP sense of crisis dominated Japan as people considered the It was after Hiraiwa's predecessor, containing more than 6,000 possibility of the LDP's unpopularity Saito Eshirō (then honorary names—a virtual chronicle of his 50 leading to a takeover of the chairman of Nippon Steel Corp.), years of business activity. Over half government by the leftists. assumed the chairmanship of of these people were acquaintances Frustration was also rife in the Keidanren that the business overseas, including leading \\cape\_data\Leadership\Leadership Handouts\Steps to Leadership (Reformatted handouts)\Akio Morita.docx ask, key people from all over the If one were to succinctly describe Key Terms: world will show up.” the path Morita Akio followed, the

(The) Diet: the legislative body of nineteenth-century phrase wakon certain countries It probably was Morita's patriotic yosai (Japanese spirit, Western spirit that led him to found the Innovative: introducing or using learning) would be just the new ideas or methods study group. In explaining its expression. When asked for his purpose he said, “Japan's economic Enterprise: a business organization signature in the United States he policies always tend to be slow in Sounding an alarm: to alert other would often sign “A.K.M.,” and his coming. We should get the younger people about something U.S. license-plate number was dangerous, risky, or troublesome generations to come out with bold “AKM 15," the initials standing for measures.” But this was his public Lament: to express sorrow, regret, “Akio Kyūzaemon Morita.” position, his true desire clearly or unhappiness about something Japanese people very rarely have

being to raise a crop of politicians three names, but “Kyūzaemon" had who could take on leadership in the been passed down as the name of coming years. True to Morita's the head of the Morita family for 15 spirit, several prime ministers have generations. The fact that the already turned out from among the surname goes back so far is in itself former members of the group: unusual. The Moritas were among Takeshita Noboru, Kaifu Toshiki, the few non-samurai commoners Miyazawa Kiichi, Hata Tsutomu, granted the right to bear a Hashimoto Ryūtaro, and Obuchi surname—and a sword —during Keizo. If Morita had safely stepped the Edo period (1600–1868). In

up to the post of Keidanren addition to this long strain of chairman, there is no doubt that his Japanese tradition, the house of connections with these political Morita also had an innovative business world, particularly among leaders would have been of great strain, having, for example, hired service to him. But perhaps it is young businessmen, toward the French people and set out to make unshakable authority of elders. superficial to think that Morita set wine early in the Meiji period up the group with his own worldly (1868–1912). Both must have be Morita called on politicians and advantage in mind. businessmen in their fifties and running in his blood. MAN WITH A MIDDLE NAME below to organize a study group, The listing of Toyota Motor's shares and thus a monthly breakfast It is well known that Morita was on the New York Stock Exchange at gathering was begun with some 50 born to a family that has been the end of September 1999 made members, including 11 Diet carrying on a sake brewery business news in Japan. It was more than 30 members belonging to the LDP and for 300 years in Tokoname, Aichi years ago, however, that Sony others from bureaucratic, Prefecture. There is another side to overcame the tough institutional academic, and business circles. his family's history, however. barriers that lay between Japan and Among the guests who attended Morita's great-great-grandfather the United States to become the this gathering were such opened a private school in his first Japanese company to have its distinguished figures as Henry hometown and devoted stocks listed on to the NYSE and Kissinger, former U.S. Secretary of considerable effort to education, started directly and broadly raising State George Shultz, and former much like his friend Fukuzawa capital overseas. Sony thus played a Economic Minister of West Yukichi (1834–1901), who founded big part in opening up the way for Germany Otto Graf Lambsdorff. Keio Gijuku– the predecessor of the other Japanese enterprises to Morita took pride in this, saying, present Keio University. follow. “This is the one gathering where, if I

\\cape\_data\Leadership\Leadership Handouts\Steps to Leadership (Reformatted handouts)\Akio Morita.docx Both his 1966 book Gakureki Mr. Morita was a remarkable not an exaggeration to say to minuyo ron (Never Mind School communicator, which is an that he was the “face of Japan." Records) and “No” to ieru Nihon exceptional trait for a Japanese, (The Japan That Can Say No), the and he captivated the attention Looking back on Morita's achievements, I cannot help but book he coauthorored in 1989 with of everyone he came into Ishihara Shintaro, now governor of contact with. In addition, he lament the loss of an individual Tokyo, were considerable considered it his life's work to who, had he assumed the role of leader of the business world, might attention-getters." Both were promote a better mutual Morita's way of sounding an alarm understanding between Japan have created quite a different against the tendency of Japanese and the rest of the world. He Japan. people to confine themselves went out of his way to help within existing conventions. ease economic frictions between the United States and Sony President Idei Nobuyuki Japan, and strove for the mourned the death of Morita with realization of a fair society for the following words: companies to compete in. It is

Comprehension Questions

1. Why did Akio Morita have to stop his public appearances? 2. How did Morita differ from typical Japanese people when it comes to expressing one’s

opinions? 3. How many names were stored in Morita’s “friends list” and where did over half of these contacts come from? 4. What was Morita’s true purpose in founding his study group of politicians and businessmen? 5. What Japanese phrase best describes Morita’s path in life?

Reflection Questions

1. As the article mentions, older Japanese businessmen viewed Morita with negative sentiments and thought of him as a show-off. Do you think their views were appropriate during the age of internationalization in the business world? Why or why not?

2. What is one thing that you take away from Morita’s leadership after reading this article?

Source and Additional reading for those interested: “Akio Morita. Guru of Gadgets” by Kenichi Ohmae (http://content.time.com/time/world/article/0,8599,2054099,00.html?iid=sr-link1) Akio Morita Library (http://www.akiomorita.net/en/index.html) “If Morita Akio Had Become Japan’s Business Premier” by Hanada Hideji Made in Japan: Akio Morita and Sony by Akio Morita, Edwin M. Reingold, and Mitsuko Shimomura

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