Management is a journey of growth, responsibility, and continuous learning. It’s not merely about running a business but about building something meaningful—something that enriches lives, creates value for society, and stands the test of time. Kazuo Inamori, a celebrated entrepreneur and philanthropist, has shared his guiding principles for effective management through 12 action items. His wisdom is grounded in his experience leading global organizations like Kyocera, KDDI, and his extraordinary revival of Japan Airlines (JAL) from near bankruptcy.
Let’s explore these principles in-depth, unravel their timeless relevance, and understand how they can guide not only management but also life itself.
1. Clarify the Purpose and Meaning of Your Business
Every successful business starts with a strong why. It’s not enough to aim for profitability; a business must have a deeper purpose that resonates with both its employees and society. The company’s purpose serves as its North Star, guiding decisions and creating a sense of belonging for all stakeholders. As Socrates said, "Know thyself." Businesses, too, must understand their essence.
For instance, Steve Jobs didn’t just build computers—he envisioned a world transformed by technology and creativity. Apple’s purpose was about changing the way people interacted with technology, which is a mission far beyond selling gadgets.
💡 Action Step: Ask yourself, “What is the deeper meaning of my business?” Write down a mission statement that captures this purpose. Share it with your team, and revisit it often to ensure alignment.
2. Set Specific Goals
Goals are the glue that binds a team together. Without clear objectives, even the most talented teams can drift aimlessly. Goals act as the map that keeps everyone moving in the same direction. But to be effective, these goals must be both specific and shared. They should be transparent, measurable, and aligned with the organization’s purpose.
John D. Rockefeller once said, “Success is the constant movement toward a goal.” When employees know what they’re working toward and how their contributions matter, they feel empowered and motivated.
💡 Action Step: Use the SMART framework for goal-setting—Specific, Measurable, Achievable, Relevant, and Time-bound. Regularly update and communicate progress with your team to foster accountability.
3. Have a Strong Wind at Your Back
Inamori describes this principle as the need for passion and energy. Imagine your purpose as a sailboat. To move forward, you need a strong wind to propel it. This “wind” is the unwavering energy and passion that leaders bring to their teams. Passion inspires, energizes, and sustains momentum during tough times.
Consider Elon Musk: his relentless drive to push boundaries in fields like space exploration and electric vehicles has made him a global icon. His boldness and energy have fueled Tesla’s innovation and SpaceX’s audacious missions.
💡 Action Step: Regularly communicate your vision with excitement and conviction. Your passion will inspire your team to adopt the same level of commitment.
4. Be Unstoppable in Your Endeavors
Success is rarely a product of luck. It’s the result of consistent, deliberate effort over time. Inamori emphasizes the importance of showing up every day and taking small steps forward, even when progress feels slow. It’s about perseverance and dedication to your mission.
Socrates perfectly summed this up: “The secret of success is to always be where you are.” This means being fully present in your efforts and not giving up when things get hard.
💡 Action Step: Break large goals into smaller, manageable tasks. Celebrate small wins along the way, as they build momentum toward bigger achievements.
5. Maximize Revenue and Minimize Expenses
This principle emphasizes balance. Businesses thrive when they efficiently manage resources. However, cost-cutting isn’t about penny-pinching—it’s about being resourceful and focusing on delivering value. Sam Walton, the founder of Walmart, mastered this principle by minimizing operational costs to offer low prices, ensuring customer satisfaction.
💡 Action Step: Conduct regular audits of your company’s finances. Identify areas where resources can be better allocated without compromising quality or employee well-being.
6. Pricing is Management
Setting prices isn’t just a financial decision; it’s a strategic one. A well-thought-out pricing strategy balances customer satisfaction with business profitability. It’s not about racing to the bottom or charging exorbitantly; it’s about understanding your market and creating value.
Michael Porter, a pioneer in competitive strategy, said, “Competitive advantage begins with pricing.” Your pricing reflects your brand’s position, value proposition, and long-term goals.
💡 Action Step: Research your competitors, understand your target market, and test different pricing strategies to find what resonates best with your customers.
.png)
7. Management is Defined by a Strong Will
Leadership requires resilience. It’s the ability to stand firm in the face of setbacks and keep moving forward with determination. Inamori likens this to a “will strong enough to cut through rocks.”
Take Napoleon Bonaparte’s philosophy: “The strength of will changes the world.” In management, this willpower is what helps businesses navigate crises and emerge stronger.
💡 Action Step: Develop mental toughness through practices like mindfulness and journaling. Reflect on challenges you’ve overcome to remind yourself of your resilience.
8. Burning Commitment
Management isn’t for the faint-hearted. It demands a level of commitment that borders on obsession. This “burning” dedication fuels you to persevere when others might give up.
Jack Ma, the founder of Alibaba, exemplified this spirit. His belief in the company’s mission—despite numerous rejections and failures—helped him build a global enterprise.
💡 Action Step: Share stories of perseverance within your organization to build a culture that values grit and determination.
9. Be Courageous in Your Work
Fear is a natural emotion, but it shouldn’t dictate decisions. Courage is about making bold, sometimes uncomfortable choices for the greater good. As Nelson Mandela said, “Courage is not the absence of fear, but the overcoming of fear.”
💡 Action Step: Encourage calculated risk-taking in your organization. Create a safe space where employees feel comfortable sharing unconventional ideas.
10. Always Do Something Creative
Creativity is the lifeblood of innovation. Businesses that rest on their laurels often stagnate, while those that embrace constant improvement and experimentation thrive.
Thomas Edison famously said, “I have not failed. I’ve just found 10,000 ways to do it wrong.” This mindset is crucial for fostering innovation.
💡 Action Step: Dedicate time to brainstorming sessions and reward creativity, even if the ideas don’t always work out.
11. Do Business with Consideration and Integrity
Trust and respect are the foundations of enduring business relationships. Inamori stresses the importance of treating others fairly and conducting business with honesty and integrity.
Andrew Carnegie once said, “Consideration for others is the greatest virtue.” This applies to employees, partners, and customers alike.
💡 Action Step: Make ethical practices a core part of your business strategy. Build transparency into your decision-making processes.
12. Always Be Cheerful and Positive
Optimism is contagious. Leaders who maintain a positive outlook inspire their teams to do the same. As Henry Ford wisely noted, “Positive thinking makes all things possible.”
💡 Action Step: Lead with enthusiasm and celebrate your team’s successes, big and small. Acknowledge challenges but frame them as opportunities for growth.
Conclusion
Kazuo Inamori’s 12 action items aren’t just management tools; they’re a philosophy for leading a meaningful life. By applying these principles, you can cultivate resilience, inspire teams, and build a business that stands the test of time. Start with one principle today—clarify your purpose, set a clear goal, or nurture creativity—and watch the ripple effects it creates in your organization and beyond.
Let Inamori’s timeless wisdom guide you toward not just success but significance.
