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Lesson #4: Challenge Conventions and Break the Mould



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Lesson #4: Challenge Conventions and Break the Mould
   

In 1989, along with the outspoken Japanese politician Ishihara Shintaro, Morita co-authored a book about Japan’s economic rise called, “The Japan That Can Say No.” In it, Morita criticized American business for what he saw as the “hollowing out” of the country’s economy. Specifically, he thought their focus on mergers and acquisitions, and relocating operations overseas, was taking away from the creation of real manufacturing power.

Morita discussed the fact that the high incomes of most American CEOs actually hurt their companies versus the more egalitarian and tight knit community of Japanese companies. He also advocated the increasing assertiveness of Japan in economic affairs. At points, he did praise the openness of American markets, while criticizing his own country for its close-mindedness. However, his praise was barely heard by the American public amongst all his criticism.

“The American system of management, in my opinion,” said Morita, “relies too much on outsiders to help make business decisions, and this is because of the insecurity that American decision makers feel in their jobs, as compared with most top Japanese corporate executives.”

It was statements like that which caused a stir around the world almost as soon as the book was translated from Japanese into English. Morita was called an arrogant businessman and some even refused to do business with him again. But, Morita remained unphased. For him, speaking out against practices he was not in favour of was simply a part of his nature. After all, Morita had been defying conventions since the very day he was born.

As the eldest son in his family, Morita had always been expected to follow Japanese tradition, which dictated that he was to follow the 15 family generations before him into the sake manufacturing business. Morita never intended to do such a thing. Instead, he chose to follow his heart, and take a risk on a risky startup in the even riskier business environment that was postwar Japan.

When Morita became a father himself, Japanese tradition stated that he should have sent all three of his children to strictly Japanese schools. However, here, too, Morita refused. He wanted his children to be educated in schools that would make them the international citizens and global leaders that he knew they were capable of becoming.

It was with that maverick character that Morita approached everything in his life, including his business. When his competition told him that consumers would only want products that were of a standard size and shape, Morita made his products smaller and portable. And, when Japanese executives were expected to be quiet, uncontroversial and anonymous within their corporation, Morita spoke out.

It was Morita’s willingness to challenge convention that led Sony to become the first Japanese company to become listed on the New York Stock Exchange. Morita paved the way for Japanese companies to raise foreign capital, instead of the traditional practice of borrowing money from Japanese banks.

Today, Morita’s unconventional ideas have changed the way much of the world does business.



Lesson #4: Challenge Conventions and Break the Mould

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