Suzuki Toshifumi
Vice Chairman, Keidanren
President and Chief Executive Officer
Ito-Yokado Co.,Ltd.
Yesterday's conventional wisdom is no longer valid today --- that is, change is intense and the process is becoming permanent. In the meantime, issues that require immediate attention are highly diverse, including redesign of various domestic systems to conform with the paradigm shifts of today, and a response to global environmental issues. Under the current circumstances, what is more acutely demanded is leadership. The so-called Bottoms-up System is a decision making process based on building consensus from the lowest echelon and has been considered a strong feature of Japanese-style management for many years. However, in today's business environment in which problems that require immediate solutions are presented to us incessantly, building consensus from the bottom up does not result in quick responses. Unless the leader oversees the entire situation, and makes rational and courageous judgements, we cannot optimize the whole system or make needed innovations.
From this view point, I have been advocating the necessity for quick decision making through a top-down approach and strong leadership to support this process. To exercise strong leadership, communication is an important element you cannot ignore. For any organization to radically change its mind-set and behavior, it is essential for every participant in it to be convinced and share in the same degree the need and importance of making that change.
It is extremely difficult for a human being to change the thought processes and behavioral patterns to which he has accustomed for many years. Moreover, when encountering an unknown situation, one tends to cope based on past successful experience. Therefore, it is the duty of the leader to repeatedly explain "why change is needed now" until everyone is fully convinced.
In that vein, I place a great importance on "direct communication" where all participants meet face-to-face, confirming and understanding the issue. We currently require dynamic responses to issues such as fundamental changes in our society and in company management as well as need to fine tune our reponses to the psychology of the individual consumers.
In any case, there is no convenient quick fix. What is required for a leader today is determination and action-orientation in order to execute steadily and yet rapidly management basics which are themselves nothing extraordinary.