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  • Leadership Lessons from Kazuo Inamori's Revival of Japan Airlines

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    Rakshana Srikanth
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    1) JAL was once one of the top airlines in the world but faced many financial problems in the 2000s due to privatization, global events like 9/11, and an unsuccessful merger with another airline. 2) When Kazuo Inamori took over leadership, he aimed to rebuild the airline's culture and motivate employees by pursuing a higher purpose without accepting pay. 3) Key lessons from JAL's recovery include having a clear vision, focusing only on core competencies, judiciously using resources, and ensuring all levels share ownership in the organization's success and place in the bigger picture.

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    1) JAL was once one of the top airlines in the world but faced many financial problems in the 2000s due to privatization, global events like 9/11, and an unsuccessful merger with another airline. 2) When Kazuo Inamori took over leadership, he aimed to rebuild the airline's culture and motivate employees by pursuing a higher purpose without accepting pay. 3) Key lessons from JAL's recovery include having a clear vision, focusing only on core competencies, judiciously using resources, and ensuring all levels share ownership in the organization's success and place in the bigger picture.

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    © All Rights Reserved
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    24 views5 pages

    Leadership Lessons from Kazuo Inamori's Revival of Japan Airlines

    Uploaded by

    Rakshana Srikanth
    1) JAL was once one of the top airlines in the world but faced many financial problems in the 2000s due to privatization, global events like 9/11, and an unsuccessful merger with another airline. 2) When Kazuo Inamori took over leadership, he aimed to rebuild the airline's culture and motivate employees by pursuing a higher purpose without accepting pay. 3) Key lessons from JAL's recovery include having a clear vision, focusing only on core competencies, judiciously using resources, and ensuring all levels share ownership in the organization's success and place in the bigger picture.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 5

    GROUP

    Leadership
    Lessons
    Kazuo
    Inamori Inspiration and Creation
    Problems at JAL
    JAL was one of the world's top performing airline in 1980s and was the flagship carrier for Japan. But
    then things started going downhill for the company in 2000s...
    PRIVATISED GLOBAL EVENTS

    Was privatized in 1987 9/11 attacks - travel slump; borrowed huge sums from
    Wasn't competitive and was bailed Government
    out during times of crisis by the Iraq war - cut travel; borrowed to cope with losses
    government SARS crisis - emergency loans of 90 billion yen
    Global Financial crisis - Borrowed 200 billion yen
    Problems at JAL
    UNRELATED MERGER WITH JAS HEAVY FINANCIAL
    DIVERSIFICATION LOSSES
    Merged with Japan Air
    Made investments and System in 2001 in hopes Did staff cuts and route
    diversified into businesses to beat competition cutbacks
    that were beyond its core This led to greater 2000 billion Yen in gross
    competency and were not inefficiencies and costs debt
    profitable. Lack of synergy Filed for bankruptcy
    Further increased costs to
    the company
    Lessons to
    Organizations (1/2)
    LEADERS CAN MOULD THE A VISION THAT WORKS ON SHARED OWNERSHIP
    ORGANIZATIONAL A HIGHER PURPOSE
    CULTURE The Amoeba management system
    Having a clear vision for the lays emphasis on the importance of
    When Kazuo Inamori took up the task organization that highlights a higher sharing ownership at various levels of
    of rebuilding Japan Airlines, he did so purpose that they are striving to solve the organization.
    without accepting any remuneration. This can motivate employees to This makes everyone a stakeholder in
    This clearly communicated his intent stretch themselves and work towards the organization and improves their
    was purely torevive the company and achieving that higher goal performance.
    bring it back to profitability for the It also helps in ensuring that the
    nation. organization makes quick decisions
    Despite some difficult decisions and is nimble
    related to job cuts, this made the
    company’s employees have full faith
    in their leader and work whole
    heartedly.
    Lessons to
    Organizations (2/2)
    JUDICIOUS USE OF LASER SHARP FOCUS ON REALISING THE
    RESOURCES CORE BUSINESS ORGANIZATION'S PLACE IN
    THE BIG PICTURE
    The problem that faces many An organization has to understand its
    successful organisation is the feeling core capabilities and remain focused One of the first things that Inamori
    of unlimited resource availability at on deriving maximum business value did after taking up the task of reviving
    their disposal out of it JAL was to make both its employees
    This can push organisations into a It should not get distracted by and the government understand the
    downward spiral as it did with Japan opportunities that are outside of its importance of the company for the
    Airlines area of expertise for short term gains nation and why it cannot fail
    Organizations must always work on Such an understanding can serve as a
    achieving the most from minimal constant motivation for everyone to
    resource availability work harder

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