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John P. Kotter - Matsushita Leadership

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He was one of the most inspirational role models of all time. Thrown into poverty at age four, Konosuke Matsushita (Mat-SOSH-ta) struggled with the early deaths of family members, an apprenticeship which demanded sixteen-hour days at age nine, all the problems associated with starting a business with neither money nor connections, the death of his only son, the Great Depression, the horror of World War II in Japan, and more. Yet John P. Kotter shows in this fascinating and instructive book how, instead of being ground down by these hardships, Matsushita grew to be a fabulously successful entrepreneur and business leader, the founder of Japans General Electric: the $65 billion a year Matsushita Electric Corporation.

His accomplishments as a leader, author, educator, philanthropist, and management innovator are astonishing, and outshine even Soichiro Honda, J.C. Penney, Sam Walton, and Henry Ford. In this immensely readable book, Kotter relates how Matsushita created a large business, invented management practices that are increasingly being used today, helped lead his countrys economic miracle after World War II wrote dozens of books in his latter years, founded a graduate school of leadership, created Japans version of a Nobel Prize, and gave away hundreds of millions to good causes.

The Matsushita story expands our notion of the possible, even for a sickly youngster who did not have the benefit of a privileged background, education, good looks, or a charismatic presence. It tells us much about leadership, entrepreneurship, a drive for lifelong learning, and their roots. It demonstrates the power of a longterm outlook, idealistic goals, and humility in the face of great success.

Matsushita Leadership is both a biography and a set of lessons for careers and corporations in the 21st century. An inspirational story and a business primer, the implications are powerful, for organizations and for living a meaningful life.

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PRAISE FOR MATSUSHITA LEADERSHIP

A compelling discourse on a fascinating man and his legacy. The writing is both engaging and lucid. Kotter shares anecdotes that enable readers to discover insights for themselves. The businessman will learn a great deal from a man who affirmed that idealistic goals are both achievable and compatible with humanistic beliefs. The lay reader will be inspired by a model of a man who never ceased in his quest to learn.

Stephan Roche, Consultant, Bain and Company

Easy to read, well researched, and inspirational. Its basic messages are powerful and persuasive, especially regarding the importance of lifelong learning, having a positive view on human nature, and the need for humility. Overall, I cannot praise it enough.

Pam Merrell, Vice President and Secretary, The Montana Power Company

The single best biography of a business leader who helped change the world. A great story of a man, an organization, an industry, and a nation.

Professor Warren Bennis, Founder of the Leadership Institute at the University of Southern California and author of Organizing Genius

I loved the book, especially the stress on humility and serving others.

Kenneth MacKenzie, Chairman, The Mentor_I Group Ltd.

A compelling book which puts so many things in perspective, especially about continuous learning for my employees and myself. I found particularly instructive how personal tragedies that often bury people were turned into a great strength by this man.

Len Siegal, President and CEO, Siegal Steel Company

A fascinating account of a fascinating leader from which I learned a great deal.

Professor Michael Yoshino, Herman C. Krannert Professor of Business Administration, Harvard Business School

Very interesting, informative, and inspiring. The full breadth of his life and all of his accomplishments are remarkable. The analysis in the Epilogue is particularly useful for highlighting KMs key personal and business strengths.

Samuel C. Schwab, President, The Schwab Company

What an incredible story!

Ulysses Kyriacopoulos, Managing Director, Silver and Baryte Ores Mining Company, S. A.

The fascinating story shows how leadership based on ethical principles can produce astonishing accomplishments. The implications here are powerfulfor individuals, corporations, and nations.

Frederick E. Roberts, President, Isthmus Caribbean and Gulf Development Company Ltd.

A great book which will inspire many.

John C. Risley, President, Clearwater Fine Foods Inc.

That one mans vision can be so large cannot fail to impress. Matsushita set the direction of a company through a combination of inspired business sense and artistry. His global outlook was matched by an understanding that the strength of a business depends on both equity and human resources.

David T. C. Lie, Executive Chairman, Newpower International (Holdings) Company Ltd.

This incredible story about an incredible man will inspire any reader to apply its lessons to their own lives.

Theodore Song, Principal, The Parthenon Group

An exceptionally inspiring book.

J. David Martin, President, Burnham Pacific

Interesting and easy to read. Matsushita Leadership powerfully demonstrates the benefits of setting long term goals.

Fabian Baca, General Manager, Casabaca S.A.

An astounding account of how a man not only overcomes adversity, but uses it as a tool for the improvement of the human spirit. An excellent lesson in life.

Larry Pitts, President, Plaza Investment Company Inc.

A great book which captures KM and his background very accurately. In Japan, many admirers of Matsushita have written about his life and strategies. But these accounts are rather journalistic. Until now, we have not had a really good book on KM. This book will contribute much to our understanding of a great business leader.

Professor Masahiro Shimotani, Faculty of Economics, Kyoto University

Beyond the lessons which can be learned about management, I very much enjoyed the work as a historical study and as a social statement.

Paul Hopper, President, Alpha Healthcare Ltd.

A great book about a great man. We should be proud of both.

Andrew Bluestone, President, Selective Benefits Group Inc.

Extremely interesting, useful, and a pleasure to read. The ideas about leadership qualities are easy to understand, with many practical examples. Some illustrations are so lively the reader can almost see them happening. This book will surely remain in peoples memories and motivate them to attempt some of Matsushitas powerful practices.

Sukumar Shah, President and Director, Mukand Ltd.

Excellent. A great story very well written.

Robert A. Johnson, President, The Johnson Familys Diamond Cellar

Matsushita Leadership is a wonderful untold story which has powerful implications for businesses and the wider community.

Trevor Matthews, General Manager for Personal Financial Services, National Australia Bank

Matsushita
Leadership

Lessons from the 20th Centurys Most Remarkable Entrepreneur

OTHER BOOKS BY JOHN P. KOTTER

Leading Change (1996)

The New Rules (1995)

Corporate Culture and Performance
(with James L. Heskett, 1992)

A Force for Change: How Leadership
Differs from Management
(1990)

The Leadership Factor (1987)

Power and Influence: Beyond Formal Authority (1985)

The General Managers (1982)

Matsushita
Leadership

Lessons from the 20th Centurys Most Remarkable Entrepreneur

JOHN P. KOTTER

THE FREE PRESS
New York

THE FREE PRESS
A Division of Simon & Schuster Inc.
1230 Avenue of the Americas
New York, NY 10020
www.SimonandSchuster.com

Copyright 1997 by John P. Kotter
All rights reserved,
including the right of reproduction
in whole or in part in any form.

THE FREE PRESS and colophon are trademarks
of Simon & Schuster Inc.

Manufactured in the United States of America
10 9 8 7 6 5 4

Library of Congress Cataloging-in-Publication Data

Kotter, John P., 1947

Matsushita leadership : lessons from the 20th centurys most remarkable entrepreneur / John P. Kotter

p. cm.

Includes bibliographical references and index.

ISBN 0-684-83460-X
ISBN 978-0-6848-3460-3
eISBN 978-1-4516-2594-3

1. Matsushita, Konosuke, 18941989. 2. IndustrialistsJapan

Biography. 3. Electronic industriesJapanHistory.

4. Matsushita Denk i SangyoHistory. I. Title.

HC461.5.M34K68 1997

338.76213092dc20 96-44863
CIP

CONTENTS
PREFACE

Over six years ago, in the spring of 1990, I decided that I wanted to write an analytical biography of an outstanding business leader. Although Id been studying organizations and the people who run them for nearly two decades, I had never focused on the life of a single individual and the prospect of doing so seemed like a logical next step in my work. While I was beginning to consider candidates for the project, Harvard Business School Dean John McArthur asked to see me. I knew John fairly well, having first met him before I joined the HBS faculty in 1972, but I had no idea why he wanted a meeting. When I arrived in his office that day I was surprised to learn that Abe Zaleznik was retiring and that the dean wanted me to take his chair. Our conversation, in retrospect a rather absurd exchange, went something like this.

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