For this speech, as well as the beginning and end of JAL's regeneration, see the reference below.

"Why Do People Live" The Saint of Japanese Management - Kazuo Inamori (3) The mental journey of rebuilding Japan Airlines (2014 speech to Taiwan)

How Inamori Kazuo Reborn Japan Airlines

Mr. Inamori's Challenge

In terms of industry experience, Mr. Inamori's chances of reorganizing JAL are very low!

There are a few fatal points

1. Long-standing company:
If you understand the characteristics of these old Japanese companies, you can know that the internal interests are intertwined, and the difficulty is like surgical removal of cancer tumors attached to blood vessels or other organs. Wait.

2. Potential layman to lead the layman:
As far as I've seen, a layman leading an expert is bound to destroy a business, without exception!
Every industry is like a mountain, not to mention that Mr. Inamori has never run a similar business.

Because every industry has several eyebrows that must be overcome, I will take the example of the failure of certain industries to enter the medical materials industry.

The most important thing in the medical material industry is the regulations, in order to obtain the license for listing, otherwise everything is empty talk! I must look at this point when I judge whether it will fail to enter this industry. But many people who step into different industries just don’t believe in evil. I can do this in other industries. Why is this industry like this? ! Because the rules are not set by you!

Not to mention different industries, even when Taiwan's high-speed rail was just operating, when it adopted the aviation industry's approach to the new industry, it also encountered many setbacks, and only the current results were achieved after the final revision.

However, Mr. Inamori finally succeeded in restructuring JAL. And it only took three years, and it turned out to be a big success!

Even more powerful, Mr. Inamori only brought 4 people, instead of forming a team to take over.

Before I intend to discuss my main points, I will first mention the basis of profit and loss leveling, which is to increase income and reduce expenditure.

1. The Japanese government managed to waive 87.5% of JAL's debt <br class="smart">Because I will use the story of Naoki Hansawa 2 later to illustrate my point, I must say that the story of Naoki Hansawa 2 successfully refuses to waive 70% of the debt is different from the truth.

Debt forgiveness is of great help to JAL, but it is a necessary but not sufficient condition.

Also, debt forgiveness is a double-edged sword that reduces the burden, but also kills a company.

2. Layoffs, abolishing loss-making routes <br class="smart">This is also the only way to adjust operations. Resources must be used most effectively, and redundant staff must be abolished. A little business experience knows, but this is still a necessary but not sufficient condition.

However, without these prerequisites, the reorganization will not be successful.

Below, I intend to use the Hansawa Naoki 2 story to illustrate my views.

In episodes 5 to 10 of Hansawa Naoki 2, the object of revitalization is Imperial Airlines. In fact, it is based on the story of the reorganization of JAL. You can refer to the previous episodes 5 to 8. In fact, this reorganization has been made an essential explanation, and The following struggle with politicians, I personally think is relatively irrelevant.

Resonance with Naoki Hansawa 2

In episode 5, Naoki Hansawa began to be in charge of the reorganization planning of Imperial Airlines. He mentioned that because the business is loans to companies, it is necessary to check on the site to understand the relationship between the loan companies. He has seen all kinds of companies, large and small, what companies Worth the investment? What business is incurable? He can see it!

This is also because of workplace experience and business needs. In addition to participating in the revitalization of some business units, but also because of work needs, it is necessary to audit manufacturers or observe enterprises from long-term cooperation. So whether a company has any hope can really be seen.

Hansawa Naoki mentioned a key point that he thinks Imperial Airlines can save, that is, most employees generally have a centripetal force towards the company, and they are dedicated to their work, whether it is ground maintenance, flight attendants, pilots, etc., they are quite diligent.

This is also one of the keys to my belief that Mr. Inamori can successfully restructure JAL.

I have seen companies that have adopted layoffs, scaled down projects, and continuously injected funds, but have never been able to balance their profits and losses.

I've even seen, because of people, how to immediately destroy a foundation that took years to build.

People are the most important factor.

The performance of the soul and business talents

The business practices mentioned above are the performance of business talents, and they are familiar to ordinary managers.

But the key to Mr. Inamori's success in rebuilding JAL is to instill the soul of a soldier and connect everything.

People must be strung together from top to bottom in order to be reorganized!

Mr. Inamori is unpaid and leads by example, visiting the scene everywhere to communicate with employees.

In addition, in many organizational reorganizations, airborne managers sometimes avoid being alone, so they will try to find a team of their own to intervene, and Mr. Inamori only brings four people, which can be regarded as assistants to support him.

Employees are human, and they can see if they have eyes. Are the people above playing real? Is it sincere? You can see it all! If the leader is serious, the people below will follow.

Because JAL was losing money at that time, Mr. Inamori always asked to fly in economy class on JAL. To be honest, even a guy as young as me couldn't stand the long-haul economy class.

In addition, there are employees who have been laid off, and he also runs Shenghe School to assist.

In terms of management, although he does not have his own staff, he told the newspapers that he was observant and strictly required executives to implement data and information. This is not easy, because Piliyangqiu's executives are the norm in many workplaces.

A slap doesn't make a sound, in fact, the most important thing is the quality of JAL employees. This is also what Naoki Hansawa 2 emphasized at the outset. If JAL employees are like employees of some third-rate companies, they will only eat, drink and wait to die, perfunctory things, and squeeze out the company's resources. However, Mr. Inamori may not succeed in three years, and may even fail.

Therefore, the reorganization of JAL is a classic. There are all kinds of successful factors coming together at the same time. Of course, Mr. Inamori will be the key to the core.

Another little story

A few years ago, high-speed rail was the target of all parties' scolding because of its long-term losses.

I often take the high-speed rail, because it is convenient, fast, and the service is really good. To be honest, it is not much different from the Shinkansen and the French TGV. Even if it is compared with the high-speed railways in other countries, it has its own characteristics.

I went to hold a seminar on the weekend, but it was full, and I didn’t want to crowd the aisle, so I stood near the door of the car. It didn’t take long for a passing flight attendant to see me standing there and say hello to me, Learned that I was standing outside because I didn't have a seat.

At that time, I told her that I was fine standing, and I was very happy to see that the high-speed rail business was doing so well. It is good for Taiwan to make money from high-speed rail.

Not long after, the flight attendant came back and told me, sir, there is a vacancy in the Nth car, would you like to take a look?

Therefore, I often take the high-speed rail, and the high-speed rail has now made money.

However, the bento is better than the one from Taiwan Railway, and the APP is really not easy to use.

summary

Finally, a simpler example is the Afghanistan and Ukraine cases.

The Americans invested a lot of resources in Afghanistan, and even drove the Taliban away, almost controlling the whole country. As a result, a lot of American resources fell into the hands of the Taliban. escape.

A company that cannot be saved is such a virtue.

On the other hand, Ukraine, which is usually loose, always thinks that it will be occupied by Russia soon. As a result, because the willpower of the people breaks through everything, JAL is actually such a company.

The reorganization of JAL has come to an end, and there should be little chance that it may be copied. Because caring employees and Mr. Inamori are indispensable.

Writing so far, saying

The days of philosophers are long gone, and the typical is in the past. The wind canopy shows books and reads, and the ancient roads illuminate the color.