Matsuo IWATA (CEO, Leadership Consulting)

He enjoyed management more than economics

Mr. Iwata was born in Osaka City, right in the center of Umeda. “I wanted to play baseball, so I entered Kitano High School. Going to a university that was close to home was also a priority for me, so I really only considered OU.” He entered the School of Economics, but upon taking the very first class in his major, he felt something odd about economics. “In the principles of economics, we were taught to assume that people hold some sense of rationality. But my intuition told me that this wasn’t right. That kind of person just doesn't exist. (laughs)” Later on, he learned that economics had begun dealing with more realistic humans after incorporating the theory of probability, but he felt that management, which targeted actual people, was more enjoyable than economics, which was all rationality and numbers.

Kitano Study Group, brimming with talent

The head of his study group was Professor Toshinobu KITANO, a business management specialist. Professor Kitano had just taken his position after working at another university, and, says Mr. Iwata, “the study group was full of hooligans, myself included.” But that was a good thing. The seminar was a unique collection of that didn’t fit the traditional “serious OU student” mold. The study group itself was difficult, focusing on reading original manuscripts in turn as a class, but Mr. Iwata felt that the professor always took various logical approaches to things. Prof. Kitano had a habit of saying, “In other words…,” but his explanations of the essence of his topics were easy to understand. Even so, when Prof. Kitano didn’t know something, he would always ask his students for their opinions. Mr. Iwata respected that humility.

“Prof. Kitano once told us, ‘I’ve taught at The University of Tokyo before, but the level of the students there isn’t much different from you all.’ He had 100% faith even in a former baseball player like me.” This teacher-student relationship has continued even to this day.

Books on Japanese business management theory were popular at the time, and Mr. Iwata would borrow those books from the shelf of his laboratory. Japanese corporations have been called “hierarchical societies” and “nepotistic.” These are also tied to Japan’s historical culture, and Mr. Iwata found an interest in the discussions on how to lead and manage people.

Mr. Iwata’s extracurricular activity involved pitching for the baseball team. There was a lot of outstanding talent from high schools with strong baseball teams in Mr. Iwata’s class, which placed the team in Division I of the Kinki League. In his very first year, he hurt his knee, which forced him to undergo rehabilitation for over a year, but “in the very last game of the Fall League during my 3rd year, my teammates let me take the mound as starting pitcher. I pitched all 9 innings and was the winning pitcher for the game. That’s something I’ll never forget.”

Acquaintances shape who you are

Mr. Iwata cherishes meeting new people. He received offers from a number of companies, but the reason he chose to enter Nissan was “people.”

Up until right before the ceremony for potential recruits on October 1, he had a hard time deciding whether to enter Nissan, a major manufacturer, or a commercial bank. On September 30, he had the opportunity to talk with one of his seniors working at Nissan. He wasn’t forcefully urged to enter the company, but rather, he was treated to real accounts of his senior’s experience working as a Nissan employee. This won Mr. Iwata over, and he chose to enter Nissan with the aspiration of becoming more like his senior.

At Nissan, he was also sent to distributors to lead new car sales. He had his sights set on receiving the “President’s Award,” taking his activity one step at a time and acquiring the know-how unique to car sales.

Things you only realize during difficult situations

Mr. Iwata continued to work hard, but eventually he didn’t know what to do with himself. It was at that time that he learned of the internal study-abroad system, in which the company would cover the cost of studying at a business school in America for 2 years. He conquered the English language, which had given him trouble in the past, to make it through a screening process that had a passing rate of 30:1. “I went from having a TOEIC score in the 300s to having a score in the 900s after some intense studying. I improved so much that the personnel division thought I had cheated. (laughs)"

But the road leading to his study abroad was not easy. Even though he had a ton of preparations to make before going abroad, he was also busy at work, leaving him with no time to study. This pressure made it so that he couldn’t eat or sleep, nearly leading to a nervous breakdown. One day, however, his wife said something that allowed him get a grip on his current situation: “Did you know that there are flowers blooming in front of our apartment?” “I’m still thankful for what she said to me that day. I was able to take an objective look at myself after realizing what an unwell state I had fallen into.” Later, Mr. Iwata took summer courses at a small business school, allowing him to make friends he could talk to outside of the company. The principal was also a true educator. He was starting to lose his humanity in his relationships with other people, but it was those very same people who saved him.

Passion over reason

At UCLA’s business school, Mr. Iwata acquired the knowledge necessary for managers over the course of two years, but American style lectures focusing solely on profits and losses left him both doubtful and hungry for something more. For managers, he came to find, one needs to have both “reason” and “passion,” and, Mr. Iwata says, “During breaks I would read all that I could about Eastern philosophers like Confucius, Wang Yang-Ming, and YASUOKA Masahiro.” He made use of the knowledge he absorbed during this time when he worked in management for The Body Shop and Starbucks. He continued to send messages to all of his employees every Monday. The continuation of these messages brought out the heart of his employees and led to restoration in the organizations.

Named to UCLA’s “100 Inspirational Alumni”

Mr. Iwata currently manages his own consulting company, writing and delivering lectures day in and day out.

“ Wakonyosai , or the Japanese spirt combined with Western knowledge, is necessary in management. I’m glad I learned American-style consulting methods, but you can’t be a good manager if you can’t understand and inspire others.”

Mr. Iwata was selected to the UCLA Anderson School of Management’s 100 Inspirational Alumni, a group of the most impactful alumni out of the 37,000 that have graduated from the school, making him one of four individuals chosen from Japan. His accomplishments in management in Japan were a big reason for his selection to this prestigious group.

Hopes for the university and expectations for students

Mr. Iwata spoke while referencing the famous quote from Spider-Man, “With great power comes great responsibility.” “An increase in status and power means an increase in responsibility. However, Japan’s elite have been taught that all you need to be able to do is study, which has given birth to irresponsible individuals. Elite education in Japan is creating monsters concerned only with authority and power while not considering the responsibilities associated with it. This powerful elite group need to be taught that power should not be used for themselves, but for the world they live in; noblesse oblige , if you will. Peter Drucker has said, ‘Rank does not confer privilege or give power. It imposes responsibility.’ Those on top should consider the well-being of far more people.” He emphasized that both teachers and students should keep these in mind.

This is a reprint of the article posted in the Osaka University NewsLetter No. 61 (September 2013).