Japan - Culture

Soichiro HondaNovember 17, 1906 August 5, 1991

1IntroductionWhat is your name and profession?My name is Soichiro Honda. Traditionally one might have called me an engineer, though I lacked a professional education. I enjoyed thinking, tinkering and trying new things. Maybe I was an inventor I have over 150 patents to my name. I was definitely a contrarian. In retrospect, I believe I was an entrepreneur I started numerous businesses and Ive seen many successes and failures, but I always endured.

Mr. Honda photo from Notablebiographies.com2IntroductionPlease list significant contributions you have made?My real contributions, at least to the automobile and motorcycle industries, revolved around a commitment to quality engineering and manufacturing. I believed whole heartedly in providing the customer the best product available. I preached this to my workers. I requested a 120% commitment to quality. Why 120%? If I asked for a 100% commitment, I would get 99%. That 1% of poor quality would be a disservice to the customer.I also left my mark on Japanese business. Im known for being anti-establishment, but I think I was just pragmatic. I didnt promote people because of tenure or age; I promoted them because of performance. I didnt hire people from the best schools mostly because I couldnt afford them. I have little regard for education. I didnt receive a formal education beyond higher elementary. Both of these characteristics promotion based on performance and no credence in pedigree were unusual for Japanese businesses at the time.3Introduction

In the 4th issue of the Honda Monthly circular, Mr. Honda introduced his The Three Joys as the motto for Honda the joy of producing, the joy of selling and the joy of buying. He also published the companys operating policy (at right and translated below).In order to achieve our objectives, it is essential that the company always operate in accordance with the following policies:Proceed always with ambition and youthfulness.Respect sound theory, develop fresh ideas and make the most effective use of time.Enjoy your work, and always brighten your work atmosphere.Strive constantly for a harmonious flow of work.Be ever mindful of the value of research and endeavor.Illustration and text from Limitless Dreams Honda.com4Cultural ValuesHow important were your Family and personal life to your success and well being? I really believed in separating my personal life from business life, though I did often share much with my wife, Mika. I once took about a year away from work and spent many days sitting in the garden thinking and many nights drinking with friends. My wife stuck by me and supported the family. My father was a very good blacksmith who opened a shop repairing bicycles. This is likely where I developed my love for tinkering. So, family was important to me. It helped make me who I became, but I think I would have gotten there even without their support. I was self motivated.

Mr. Honda and family at the airport as they see him off to America photo from Honda.com5Cultural ValuesHow do you want to be remembered?

Well, I wanted to be known as the creator of the greatest car company in history. Will I? Probably not, but we made a tremendous mark on the industry and we were and still are the best in many areas. We arent the biggest, but Im ok with that. I would also like to be known for my relentless pursuit of excellence in quality engineering.Why do you think you were so popular with the general Japanese society?

Hmm I dont know that I was, at least early on. I was looked down upon not part of the gakubatsu good old boy network and my companies werent zaibatsu family dominated large companies like Toyota and Datsun (Fiorani). Those that worked with me in my early days probably like me much more in retrospect. I was often tough on them. I think they respected me. They tolerated me, but maybe because jobs were scarce at the time.6Cultural ValuesWhat are your motivational drivers?

I think many things motivate me. Im motivated to see my ideas to fruition. Im highly motivated by a challenge, such as when I visited the Isle of Man TT Races in 1954 and first realized just how far behind our motorcycles were compared to those in Europe. I then vowed that we would compete in those races and we did, winning two classes in the 1961 TT. Im motivated by failures. We had many and I took them personally, but there is much to learn when a good idea fails.

Hondas first appearance at the Isle of Man TT races in 1959. Honda finished in 6th, 7th and 8th places. Click on the photo to read more from Honda.com7PlanningWhat role did planning play in your career success and why is it important?Planning is important from an engineering process standpoint. I always had a plan. They didnt all work, but many did. As Honda Motor Company grew, planning became more central to our organization. Certainly when Honda became a large company, our management team developed strategic plans. I despised the administrative tasks of a business marketing, accounting, etc. I wanted to tinker to get my hands dirty and most importantly, I wanted to win..

Mr. Honda, in 1967, looking out over his Suzuka factory the most advanced plant in the world at the time. from Honda.com 8Risk ToleranceHow would you describe yourself from a risk taking standpoint (risk averse, risk neutral or risk taker) and why?I was definitely not risk averse. It seems like I took risks every day as I built my company. I started many new ventures some successful, some not. I dont know that I considered it risk taking though. Times were tough and I had to make a living, plus I was just doing what I loved. What else could I do I never wanted to work for anyone. I was an entrepreneur. In many respects I managed risk, though not consciously. One could argue that my commitment to quality was a means to manage risk keeping customers safe (of foremost importance) and happy.9InnovationName one innovative success and/or failure you experienced in your career?One? Who do you think youre talking to? OK first a success. Ill give you a famous one the Honda Civic in the U.S. At a time when gas prices were rising as fast as Detroits quality was falling, I brought the clean burning and fuel efficient CVCC engine to the U.S. in the Civic (Brewster, 2004). I had failures as well. One nearly cost us our company and I take full responsibility for it. In 1954, our 4E engine in the Dream 4E motorcycle started having problems. The engine was stalling at slow speeds. We couldnt sell the motorcycle

with this engine issue, so we were stuck with excess inventory. Anyway, we faced the problem head on and we were completely transparent with our workers, suppliers, dealers and our bankers. They stood by us and we figured out the issue a problem with the carburetor. This ended up being a great motorcycle with a long history. The hidden success here was our frankness with each stakeholder.1954 Honda Dream 4E photo from Flickr.com10LoyaltyHow would you define loyalty from a co-worker, colleague or family member perspective? Why is it important?Consider the story I just told you about our crisis and the 4E engine. Our banker went to bat for us. Our suppliers worked with us and stood by us, not cutting off parts. Most importantly our employees endured, often receiving partial pay. That is loyalty when someone sticks with you when things arent going well. I think this goes for work and family relationships, though family doesnt have much choice. In Japan, workers historically have been very loyal to the company working there for life. Honda became a job for life company. But Ive told employees, especially early on, if you find something better, go for it I understand. I didnt have much to offer in the way of pay early on, so this was one perk that was free.

11LeadershipHow would you define your leadership style?Mixed. I was definitely an authoritarian, but I was also democratic. I was often feared. I would berate workers on the floor if I caught them failing to apply proper quality standards, but I didnt hold a grudge. I really cared about the ideas of my workers. I wasnt above them they mattered. I had no room for status. I didnt care if you were rich or poor it made no difference to me. I was one of them the workers and I even dressed like it. You didnt catch me going around in suits, at least not until much later in my career.12Workplace InterrelationshipsWhat was your strategic approach to developing allies?

I developed allies, though I dont know that I had a strategic approach. I think I understood people. Really any relationships that were successful for my company were built on personal relationships and respect.Is teamwork important in politics like it is for business?

Teamwork is important, but the individual matters too. I believe in personal accomplishment and rewarding people based on what they do. Teamwork is vital when it fosters innovation, hard work and taking risks, not detrimental when it impedes them.

Mr. Honda and Takeo Fujisawa two very different personalities that were a perfect match. Mr. Honda built and Mr. Fujisawa sold. Per Mr. Honda when asked why they worked so well together, Hes got what I havent got. Click the photo to read more about this relationship quote and photo from Honda.com13Decision MakingWhat was your approach to decision making as a leader?Good question. I was deliberate. I thought about decisions and took action. Thats not to say I never changed my mind. I bailed out on several projects mid-stream. Most people couldnt understand this. It seemed against my nature, but my heart wasnt there. They didnt involve motors. I also involved others in decision making. When I realized you were smart and a hard worker, I was interested in your opinion. I considered your thoughts and ideas. I still made the decision, but I believe they were at least partly influenced by those I trusted.14Use of TechnologyWhy is technology important and how would or did you use it strategically?In many ways we were and still are a technology company. Before we could afford it, I bought state of the art manufacturing tools. Our engines were technological leaders. We always tried to stay at the forefront of engine technology. As we are a technology-based company, technology is simply vital to our success. We used it strategically as a core competence. We build high quality and technologically advanced products. Without the technology leadership, our engines wouldnt be the best. We wouldnt have the reputation that we currently enjoy.

The chimney engine, Mr. Hondas first engine, was considered too advanced for its time and never made it past the prototype. Honda engineers later constructed the engine based on Mr. Hondas original design and it worked just as Soichiro intended. Click on the diagram to learn more about this story. Diagram from Honda.com.15Interview ReferencesThis interview is fictional and responses are a composite of ideas derived from the multiple sources listed below, except where cited in the text.Answers.com. Soichiro Honda. Retrieved October 12, 2009 from http://www.answers.com/topic/soichiro-honda.

Brewster, Mike J. (2004). Soichiro Honda: Uniquely Driven. BusinessWeek. August 17, 2004. Retrieved October 12, 2009 from http://www.businessweek.com/bwdaily/dnflash/aug2004/nf20040817_3267_db078.htm.

Fiorani, Sam. The Automotive Century: Most Influential People. Auto History Online. Retrieved October 12, 2009 from http://www.autohistory.org/feature_7.html.

Limitless Dreams. Honda Motor Company. Retrieved October 12, 2009 from http://world.honda.com/history/limitlessdreams/index.html.Hanlon, Mike. (2006). One Hundred Years happy birthday to Soichiro Honda. October 16, 2006. Gizmag. Retrieved October 12, 2009 from http://www.gizmag.com/go/6475/.

NotableBiographies.com. Soichiro Honda Biography. Retrieved October 12, 2009 from http://www.notablebiographies.com/He-Ho/Honda-Soichiro.html.16Photo ReferencesImages were used from the following sources:Flickr.com. 1954 Honda Dream 4E. El Camino Motorcycle Show. Retrieved November 3, 2009 from http://www.flickr.com/photos/javelina_in_austin/3936190916/in/set-72157622289501485/.

Hanlon, Mike. (2006). One Hundred Years happy birthday to Soichiro Honda. October 16, 2006. Gizmag. Retrieved October 12, 2009 from http://www.gizmag.com/go/6475/.

Limitless Dreams. Honda Motor Company. Retrieved October 12, 2009 from http://world.honda.com/history/limitlessdreams/index.html.

NotableBiographies.com. Soichiro Honda Biography. Retrieved October 12, 2009 from http://www.notablebiographies.com/He-Ho/Honda-Soichiro.html.17