By S. Hadi Abdullah                                                                                                                                   
                                                                                                                                                      
DURING the Second World War, the army had ordered the                                                                                                 
Matsushita Company to produce weapons, wooden ships and wooden                                                                                        
planes. This was done in typical Matsushita efficiency.                                                                                               
                                                                                                                                                      
After the war, the company faced many restrictions from the                                                                                           
Occupation Forces. Konusuke Matsushita was to be "removed" as                                                                               
company president. After many appeals from him (he made 50                                                                                            
trips to Tokyo) and his company union, he was reinstated in                                                                                           
1950.                                                                                                                                                 
                                                                                                                                                      
The war itself "aroused in me a strong feeling of                                                                                                
indignation," that things "should not have come to such a                                                                                   
pass." He began searching for answers, meeting Buddhist monks,                                                                                   
businessmen, judges, scholars, thinkers and others. He                                                                                                
indulged in meditation.                                                                                                                               
                                                                                                                                                      
He felt that much of the despair, distress and poverty                                                                                                
prevailing was not a natural phenomenon, but something that                                                                                           
people bad brought upon themselves. He felt that "if a man                                                                                       
doesn't have peace, happiness and prosperity, it is because he                                                                                        
doesn't understand his own nature."                                                                                                              
                                                                                                                                                      
This led to the founding of the PHP Institute in 1946. The                                                                                            
movement, as it were, stood for "Peace and Happiness through                                                                                     
Prosperity." Soon "branches" were established all over Japan,                                                                          
where people came together to discuss, study, think, meditate                                                                                         
and write.                                                                                                                                            
                                                                                                                                                      
This institute published many of Matsushita's works, including                                                                                        
English translations. His philosophy that a business has                                                                                              
social responsibility and that it should not overcharge or                                                                                            
short-change people comes out strongly through his actions.                                                                                           
                                                                                                                                                      
Yamamoto Trading had been very helpful in making Matsushita's                                                                                         
business prosper. However, Yamamoto was only interested in                                                                                            
profits and did not like Matsushita's interference.                                                                                                   
                                                                                                                                                      
Matsushita was of the opinion that the quality of the product,                                                                                        
in this case the bicycle lamp, had to be upgraded while the                                                                                           
prices had to be brought down. His thinking was that a fair                                                                                           
price assures a fair profit for the manufacturer and the                                                                                              
retailer. There was a disagreement, and this led to their                                                                                             
parting of ways.                                                                                                                                      
                                                                                                                                                      
Another instance was the takeover of Hashimoto Electric                                                                                               
Company which was in difficulty. It was the time of the                                                                                               
depression. The company could go under in five to six months,                                                                                         
which meant that if Matsushita waited, he could have picked up                                                                                        
the company for a song.                                                                                                                               
                                                                                                                                                      
But he did not. He felt that it would be wrong to make                                                                                                
Hashimoto lose so much. So he bought the company at the                                                                                               
company at the current price.                                                                                                                         
                                                                                                                                                      
His sincerity and commitment was so strong that Sumitomo Bank                                                                                         
gave him a large loan without any collateral, even before he                                                                                          
became well-known.                                                                                                                                    
                                                                                                                                                      
Matsushita was not a man for short-cuts. His company had                                                                                              
embarked on a decentralism tem of management around the time                                                                                          
Alfred Sloan was doing the same at General Motors.                                                                                                    
                                                                                                                                                      
Matsushita found that expanding meant sacrificing the                                                                                                 
advantages of a small company. He first implemented this                                                                                              
system in the electrothermal appliances division which was                                                                                            
headed by an individual "whose powers and responsibilities                                                                                       
were equivalent to that of the company president."                                                                                               
                                                                                                                                                      
This system, he felt, had other distinct advantages such as                                                                                           
showing the achievement and weaknesses the divisions while                                                                                            
training capable management people for career progression.                                                                                            
                                                                                                                                                      
Leadership by example is one of Matsushita's greatest                                                                                                 
strengths. An example in his life brings out this point.                                                                                              
                                                                                                                                                      
By tradition, the Japanese clean their office premises every                                                                                          
lunar new year. During a cleanup of the Matsushita premises                                                                                           
1932, the toilet toilet was left out.                                                                                                                 
                                                                                                                                                      
Seeing that me supervisor foreman were not keen, Matsushita                                                                                           
rolled up his sleeves and helped to clean the toilet, thereby                                                                                         
sending a strong message to his employees.                                                                                                            
                                                                                                                                                      
He felt that the workers' reluctance to do certain things                                                                                             
could be due to lack of pride for the job. Therefore, he set                                                                                          
out to explain clearly the meaning of work to his employees.                                                                                          
                                                                                                                                                      
The company was already doing well in the 50s with sales                                                                                              
amounting to 22 billion yen. Matsushita wanted things to move                                                                                         
faster, and he proposed the "Five-Year Plans" that called for                                                                               
the quadrupling of sales.                                                                                                                             
                                                                                                                                                      
"At first, the employees were taken aback; they all doubted                                                                                      
that such a plan could be attained," said Matsushita.                                                                                            
                                                                                                                                                      
"I argued that there is ample demand for good quality,                                                                                           
reasonably priced products. It is simply the numerical                                                                                                
expression of the demand we are fully capable of satisfying."                                                                                    
                                                                                                                                                      
He encouraged his employees to work hard as this growth would                                                                                         
also help society at large. He was confident that this could                                                                                          
be achieved because advances would be made in technology, and                                                                                         
he had committed staff. By the fourth year, the company was                                                                                           
topping 80 billion yen, and by the fifth year exceeded the                                                                                            
target, reaching 106 billion yen.                                                                                                                     
                                                                                                                                                      
Matsushita's constant reflections allowed him to put a soul                                                                                           
into the company. The corporate mission reads: "The mission of                                                                                   
a manufacturer is to overcome-poverty, to relieve society as a                                                                                        
whole from the misery of poverty and bring it wealth."                                                                                           
                                                                                                                                                      
How? "By producing goods in abundant supply, inexhaustible and                                                                                   
as cheap as tap tap water."                                                                                                                      
                                                                                                                                                      
His message to his staff further stressed the need for service                                                                                        
to the public, the importance of fairness and honesty,                                                                                                
teamwork to reach shared objectives, continuous improvement,                                                                                          
courtesy and humility, to be harmonious with nature and to be                                                                                         
grateful for one's blessing.                                                                                                                          
	                                                                                                                                                     
This message was delivered with emotion and commitment at the                                                                                         
first founding day anniversary of the company. It soon become                                                                                         
the company creed with employees taking an oath on it. It is                                                                                          
this type of commitment and vision that seems to make some                                                                                            
companies more successful than others.                                                                                                                
                                                                                                                                                      
Matsushita always stressed collective wisdom, emphasising that                                                                                        
managers and supervisors should know the fellings and opinions                                                                                        
of employees. HE He instituted proper training for the staff,                                                                                         
which started with the recruitment procedure, orientation                                                                                             
training and training for those who were about to be promoted.                                                                                        
                                                                                                                                                      
                                                                                                                                                      
The company credo was chanted every morning by all the                                                                                                
employees. A visit to the local Matsushita factories would                                                                                            
reveal the above.                                                                                                                                     
                                                                                                                                                      
Konusuke Matsushita's concern for the employees was so great                                                                                          
that even during the depression, while other companies were                                                                                           
retrenching people by the hundreds, he kept all his employees.                                                                                        
                                                                                                                                                      
                                                                                                                                                      
Two of his assistants had come to him at Nishinomiya, a suburb                                                                                        
of Osaka where he was convalescing, and proposed that                                                                                                 
Matsushita had no choice but to retrench its workers. There                                                                                           
was a stock overflow, production had been reduced.                                                                                                    
                                                                                                                                                      
Matsushita proposed that his employees work half a day, in two                                                                                        
shifts, for the same salary. Their only promise was to help                                                                                           
sell the excess stock, which they did in a comple months.                                                                                             
                                                                                                                                                      
Having handed over the presidency at the age of Matsushita did                                                                                        
not stop being active.                                                                                                                                
                                                                                                                                                      
While he assisted the company as its chairman, he began to                                                                                            
involve himself in writing and lecturing, always emphasising                                                                                          
harmony, the need to work hard and be thankful for one's                                                                                              
blessings, be responsible, take pride in one's workplace love                                                                                         
humanity as a whole.                                                                                                                                  
                                                                                                                                                      
He introduced the concept of "Dam Management," meaning, like                                                                                
utilising the river for electricity and controlling it during                                                                                         
floods, companies likewise should have excess capacity to meet                                                                                        
sudden demands.                                                                                                                                       
                                                                                                                                                      
Being disillusioned with the government leadership, he decided                                                                                        
to do something about it.                                                                                                                             
                                                                                                                                                      
He founded the Matsushita School of Government and Management                                                                                         
in 1978. A number of its graduates are holding important                                                                                              
positions in government and industry today.                                                                                                           
                                                                                                                                                      
He has written more than 26 articles and books (some                                                                                                  
best-sellers) during his 94 years of life. His writings had                                                                                           
profound influence on the Japanese and others around the                                                                                              
world.                                                                                                                                                
                                                                                                                                                      
Taking the decision to step down at the height of one's career                                                                                        
calls for great statesmanship. Indeed, the opposite seems to                                                                                          
be the norm the older one gets, the more entrenched one seems                                                                                         
to become.                                                                                                                                            
                                                                                                                                                      
"I am an incorrigible idealist the kind that conjures up                                                                                         
idealistic fantasies. I belong more among the dreamers than                                                                                           
the men of deed," Matsushita said of himself.                                                                                                    
                                                                                                                                                      
Of his search for a "Utopia," he has this to say: "It seems to                                                                         
me that the search for the ideal human society and the best in                                                                                        
human potential is an unending and eternally fascinating                                                                                              
journey."                                                                                                                                        
                                                                                                                                                      
Konusuke Matsushita, who started working at the age of nine,                                                                                          
built the Matsushita Group of Companies into a global concern,                                                                                        
with sales reaching 5 trillion yen and net profits at 213                                                                                             
billion yen by the time he passed away.                                                                                                               
                                                                                                                                                      
He was hard-working, innovative, took risks and had a knack                                                                                           
for picking successful products. His relationship with his                                                                                            
employees was excellent, culminating in his employees erecting                                                                                        
a bronze statue of him in 1986, dedicating it to "Japan's God                                                                                    
of Management."                                                                                                                                  
                                                                                                                                                      
He was appointed member to many important committees in Japan.                                                                                        
He received main coverage from Time and life Magazines.                                                                                               
                                                                                                                                                      
Matsushita was not just a businessman he was a philosopher                                                                                            
contributing to manage ment, litera ture, culture, arts and                                                                                           
mankind. He received numerous awards in his lifetime,                                                                                                 
including the Panglima Mangku Negara (PMN) from the Malaysian                                                                                         
Government in 1979.                                                                                                                                   
                                                                                                                                                      
Matsushita Chairs have been established in a number of                                                                                                
universities. It is no wonder that Prof John Kotter of Harvard                                                                                        
University considers him the greatest leader of the century.