Thinking on Realistic Management

Shoei UTSUDA Vice Chairman of the Board of Councillors, Nippon Keidanren President and CEO, Mitsui & Co. Ltd.

I think that even if executives have read vast numbers of books on management and pursue exceptional major strategies or ingenious plans, we cannot hope for results beyond our intellectual capacity. With the introduction of super-computers we can simulate every possible measure, but ultimately a company's management depends on human judgment. It cannot be better than the vision and intellect of the executives themselves or their sense of being entrusted with responsibility towards both the company and society.

Though Mitsui is hardly in a position to expound lofty management theories, as long as company management is carried out by human beings, I think that all managers can do is to strive to manage to the best of their capabilities. On a fundamental level, when leaders take on the responsibility of management within business organizations they must humbly listen to, take in and digest the opinions of the people supporting them from below, broaden their own perspectives and make wholehearted and responsible decisions.

I worked directly for Tatsuzo Mizukami, as his secretary, for 3 years. He was from the Koshu region (present-day Yamanashi Prefecture), and he set great store by the words of Shingen Takeda (a feudal lord in 16th century Japan, which was being torn apart by civil wars during the "warring states" period): "People are our walls and castles. Compassion is our ally, vengeance is our enemy." It seems that a management theory postulating respect for people has not faded even after the passage of 400 years.

Even in the USA, where we are apt to think that the only objectives of management are efficiency and turnover, I hear that in fact the "loyalty effect" is being re-evaluated. This is based on the belief that a company's performance improves when the people who have supported it over the years (shareholders — by holding their shares for a long period, employees — through long service, and the companies that it has been dealing with for many years) are treated with the importance they deserve. This may seem rather obvious, but it is a basic precept that we must not forget.

Although I still have a long road to travel before I reach my final destination, I continue to accumulate knowledge with a smile on my face while I am constantly fascinated by the intriguing nature of human society, and I strive to meet the daily challenges that come my way in a flexible manner.