, let's begin with the sharing of "philosophy". Fig. 1 is my own interpretation and illustrations of the idea of founder K.Matsushita that is applied in the actual business management.

Outermost circle represents business activity, such as development, production, sales, and administration, i.e., the actual work itself. They are, however, based on the deeper structure, that is the management control system, which is composed of various mechanisms based on divisional system. Now, those systems are again structured in order to achieve management philosophy that is laid even underneath. This management philosophy is the basic way of thinking of the company, or sense of value in the company. It is to question, for example, in a little grandiose expression though, if our products are creating joy of life or giving pleasure of daily life to our customers, or if all our employees are working lively with a high spirit to fulfill those missions.

If your job does not reach that far, the job you do is not a true job. The management philosophy should not just end up in pursuing human happiness, but it should be the one, which is right in the light of universal truth.

Now, the truth of universe is composed of the following two factors. One is that the ?relation of relative dependence? all in all binds everything in this world. Put it simpler, it means we are helping each other, in give & take relation, where a kind considerate mind to others is important. The other one is ?all things are in the state of flux?. In other words, everything will change with time, and all the surroundings of us will change when time goes by.

Truth is ?thought to be right by anyone, anywhere, and at any time?, and ?applied to any case in any society, regard-less of the times, or East or West. It is a thing everybody recognizes right?. Thinking in this way, we know the truth possesses power in itself. Therefore, when we follow management philosophy that meets the truth, and promote management renovation on the basis of such management philosophy, success is assured. On the contrary, the ignorance and negligence of this truth cause most of the failure. The difference between the person who is able to renovate and the one who is not comes from this gap of perception.

On the basis of the consideration so far, what I want to stress is that the biggest character of Matsushita Group's management is originated in the deepest structure, the truth of universe, and upon that origin, there is a clear consistent link from management philosophy down to daily business activity. In case our business is not in good shape, often we tend to fall into a habit of criminal search - who is to be held responsible? Or tend to call for the change of system or organization, or stress the need for more complete