Hollow Management Philosophy

I don't believe management where corporate philosophy makes a significant contribution is simple. Rather, I fear there is much discussion of corporate philosophy that appears facile, filled only with hollow words.

The latest book by Keiichi Itami, a leading Japanese management scholar and Professor Emeritus at Hitotsubashi University, "Management Philosophy Ignites the Hearts of the Frontline" (Nikkei BP), sounds a warning about recent discussions using katakana management terms like mission, value, and purpose.

"Good Strategy + Good Philosophy = Great Management"

This simple framework forms the core of the book.
"Good management" means having a clear blueprint for business activities, i.e., a "strategy." Once this is established, "great management" involves valuing autonomous thinking at the front lines and guiding them through a "philosophy."

The most important element is "strategy." However, it's not a simple matter, and surprisingly many corporate organizations fail to establish it properly. Only after achieving this does "philosophy-driven management" become a theme. Yet this is even more difficult, and in reality, the author observes many instances of "hollow management philosophies" – essentially "collections of flowery phrases confined to the framed wall in the president's office."

Drawing on abundant case studies, the book proposes that the essential elements of a good "management philosophy" fall into two categories: "corporate philosophy" and "organizational philosophy."

A good corporate philosophy (= the mission and purpose of the company's existence [or the mission and purpose of its business activities])

• Clearly articulates the company's position within society (its social mission)
• It has a long-term vision that can be consistently pursued over time
• Aspires to ideals without being unrealistic

A good organizational philosophy (the fundamental approach to management [i.e., the basic policy for organizational operation])

• Concrete guidelines, but not detailed instructions
• Contains surprising elements that make you think, "Do they really say that?"
• Proactively addresses human shortcomings and weaknesses
   

I was deeply moved by the profound sense of crisis embedded in this book.

It raises the question: aren't the "management philosophies" many organizations strive to define today failing to benefit the front lines? Aren't they failing to function as tools to drive the front lines autonomously and dynamically?

Recently, more companies are eager to create management philosophies (missions, purposes, etc.), and I think we should be a bit cautious about the frequent demand for organizational members to participate in shaping them. Because, to me, it seems many such attempts implicitly create a flow aimed at producing "well-formed," "beautifully worded" statements. (Omitted)

This tendency leads to principles that lack punch, principles that are adorned with beautiful words but end up being hollow.

What's frustrating is that this observation, which surely resonates with many people, may not necessarily be understood by the readers of this book. Online reviews, though few in number, even included comments like "lacking new insights."

The reason might be that readers themselves cannot judge their own "management philosophy" against the six criteria for "good corporate philosophy" or "good organizational philosophy" mentioned earlier (perhaps even vaguely thinking it all seems OK), failing to internalize this critical awareness as their own.

In my view, the most challenging aspect of a corporate philosophy is striking the balance between "pursuing an ideal without being unrealistic." "Realistic idealism" means constantly questioning every decision made at the "front lines" from the standpoint of an ideal—one that is never too lofty, but perfectly balanced.

In other words, the management philosophy presents values that don't necessarily align with frontline reality, causing confusion. Yet, as it permeates the organization through dialogue, it becomes possible to truly grasp "Why does this corporate organization exist?" You must ask: "Do you have such a 'questioning mechanism' at your disposal?"

The same applies to organizational principles. The key point here is "concrete guidelines, but not detailed instructions." This means checking whether the management philosophy poses a "question" that motivates the front lines to act autonomously, positioned between human nature and grand ideals.

In other words, what is needed is not a "correct instruction" that no one would oppose, but a "question" that stimulates the front lines. Unfortunately, there is a sense of crisis that this is not functioning well in the setting of "management philosophies" within many corporate organizations.

Once this starting point is clearly recognized, the significance of this book, which systematically discusses principle-based management, becomes readily apparent.

During my third year of university, Professor Itami assigned a task: "Bring examples of 'vertical integration.'"

I thought submitting a typical "success story" from textbooks or newspapers would be boring. So, I based my report on a story I heard from a staff member at "Hope-ken Honpo," a ramen shop in Kichijoji I frequented several times a week back then. I submitted a report saying something like, "This shop makes its noodles in its own factory, something usually purchased from specialized suppliers. Moreover, they sell those noodles to other companies in the same industry. This is a fine example of vertical integration."

I don't recall how that report was evaluated, but the bowl of "Tokyo Backfat Pork Bone Soy Sauce" ramen—often considered the originator of this style—ordered with the incantation "firm noodles, rich broth, raw egg" is always a perfect 100 points for me, filled with nostalgic memories.

Please, enjoy!

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