Japanese business philosophy
Originally sent exclusively to The Letter subscribers on February 2nd. Want to be the first to get my personal newsletter in your inbox every Monday at 7am? Subscribe for free here.
Good morning gang,
After the Second World War, the Japanese became an exceptionally resourceful bunch.
Like the Germans, they recovered from defeat and went on to build fast-growing economies. Disaster led to greatness.
Today, both countries still command impressive economic strength.
Japan particularly interests me, especially their philosophy of Kaizen.
If you have not heard this term before, in plain English it can be summed up as:
- Small improvements add up to big results over time
- Everyone is responsible for improving things, not just managers
- Fix problems as soon as you spot them
- Improve processes, not just outcomes
Kaizen in a business context:
- Making work slightly easier, faster, or cheaper
- Reducing waste, friction, or unnecessary steps
- Regularly asking, “How could this be better?”
- Encouraging team members to suggest improvements
After the war, with cities decimated and barely any resources available, the Japanese embraced one of my favourite quotes:
“It is not your lack of resources that holds you back, it is your lack of resourcefulness.”
We all have desires to massively innovate, secure huge investment, buy equipment that will make things easier, win the big contract, secure the bank loan, hire the talent we need, move into the dream location, or gain the fame that opens doors.
These milestones are nowhere near as powerful or as culturally important as continuous improvement and strong habits.
Many great businesses become bloated on milestones and past glory.
A good dose of toughness can be a good thing. The trouble is you do not want it forever.
The trick is to have a long-term view of what greatness looks like while you deal with the day-to-day reality of now.
It is why I love Rudyard Kipling’s poem If, particularly the line:
“Or watch the things you gave your life to, broken,
And stoop and build ’em up with worn-out tools.”
If you are building right now, whether things seem tough or just okay, the real winners navigate the storm using my four-company philosophy.
You run the company you have today, while at the same time building the company you truly want to become, with vision and habits moving you there every single day.
In this philosophy, the third company is your marketing engine and the fourth is your property or investment arm, all working in unison.
Today you may be just good with the resources and skills you have.
If you keep the end goal in mind, real greatness and success will come.
I have interviewed people who have truly made it. The common thread is clear. They go through tough times but keep a sharp eye on the prize regardless of the difficulties, and they adopt a culture of Kaizen, continuous improvement.
I often see entrepreneurs sell their businesses and then watch that culture of continuous improvement leave the organisation.
I see vision and drive disappear. It is sad. Trickle-down culture is real.
If you measure continuous improvement, you will manage to win the result.
I promise you this. If you have this approach and your business model is strong, the things you need will come.
Capital and talent follow the captain who drives culture and builds a great business model.
Do not underestimate the power of a great business model, or the need to constantly tweak it.
In three interviews last year, I spent time with leaders running billion-dollar revenue businesses. All of them tweaked or changed their models to reach where they needed to go. They started with models that needed refining.
My next YouTube video is all about this, so be sure to give it a watch.
And lastly...
I was amazed to hear that Egyptian authorities discovered a new mummy in a vault in the pyramids. The mummy was covered in chocolate and nuts. They named it Ferrero Rocher.
To your contined success,
James
PS. We’ve got another event coming up, and this one is all about investing your slow pounds into property. My favourite is commercial property, and the good news is you do not need a million pounds to get your foot in the door… Come along and I will show you how I do it.