06 January 2007

Long-term Planning... For A Better Society

In a conversation today with Bryant Eastham of Panasonic's Electric Works Laboratory of America (PEWLA) in Salt Lake City, I recalled a story I heard while working at Omron in Japan.

As Omron occasionally teamed technologies with companies like Panasonic, it was not unusual for us to brag a big about various personal encounters with notable and great leaders. Omron Chairman Dr. Tateishi Kazuma (1900 – 1991), with whom I spent a fair amount of time from 1986 until his death, was a dear contemporary of Panasonic's founder, Matsushita Konosuke (1894 - 1989). Since our offices were located in the Crystal Tower near Osaka Castle at Kyobashi, exactly across the street stood the Twin Towers of Panasonic (founded 1918, and also known as National, and Matsushita Electronics-- one of the world's largest electronics giants— founded by a visionary man). I've never heard this story elsewhere, so hopefully you haven't either.

As I best recall it, when Mr. Matsushita grew ill, news organizations beset Panasonic headquarters to grant interviews before the 95-year old leader passed. Newspapers, magazines, and media were granted organized access, but under the conditions that only one member of any publication was sent, that only one question was asked, and that each reporter stay no more than five minutes.

As each representative from world news organs filed into Mr. Matsushita’s hospital room, they politely asked their obligatory question, quickly scribbled the answer, and left.

The American reporter turned out to be a cub— with little experience in the world, and (from what I heard) little understanding of the greatness of the dying man before him. Yet the reporter managed to squeak out his single question,


“Sir, what are your long-term plans for the company?”

Mr. Matsushita paused for a long time before replying,

“Well… young man, do you want to hear the 500-year plan, or the 1000-year plan?”

It’s fair to say Mr. Matsushita was totally serious. I don’t know for a certainty that he indeed had a workable business strategy that actually ran to year 2989, but I can attest that Omron operated from a detailed 25-year operational plan. Every five years details were adjusted and with great fanfare 25,000 employees renewed efforts, all with a singular understanding of our work this year, next year, in ten years, and towards a better overall society through our efforts.

I've noted this vision is frequently absent in our western companies. Other than making a living, we're not focusing our efforts towards solving problems of community or society.

For example, Omron devoted a great deal of resources to solving ethical, social and philosophical position. (See http://www.jimpinto.com/commentary/omron.html#2) I recall when Omron spent millions to create Sun Taiyo, two factories created— entirely— to employ the handicapped. Each station is manned by someone whose physical challenges are minimized by customizing for their ranges of movement, and in some cases, production is improved by persons who have sharpened their senses, such as the blind woman who checked relays with her acute hearing for any signs of sticking contacts. The factories were surrounded by dormitories and included stores, supermarkets, nightclub and lounges. People who worked and lived there tearfully told how wonderful it was to actually fit into and benefit society at large with the impact they could make.

With vision, planning, and hard work, all of us can make similar impacts as did Dr. Matsushita, and Dr. Tateishi. It involves long-term follow-through, not typical wishy-washy on again/off again thinking.

Cheers! 今年も宜しく

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