Hitachi, the Japanese electronics giant, has been around for 102 years. Recently they went through one of their worst periods in company history. During the four year period from 2006 to 2010, Hitachi went through a company depression where the total losses equaled $12.4 billion. The losses were the worst in company history. The following two years they posted record profits. In 2011 alone, they posted a net profit of $4.35 billion.
So why did they go from having record losses to record profits? What happened to make them profitable? In April 2010, Hiroaki Nakanishi took over as the president of Hitachi. When he took over, he had been in the company for many years which gave him a lot of experience, but he didn’t adopt the previous leadership culture that led to the problems. With all his experience, he hadn’t allowed himself to grow into the same mold as all the past executives. He had a completely different thought process than all the previous leaders. The article Hitachi President Prods Turnaround in the Wall Street Journal by Daisuke Wakabayashi states:
Hitachi under Mr. Nakanishi has broken away from a plodding, risk-averse style of management, spinning off at breakneck pace its consumer-related operations in mobile phones, computer parts and flat-panel TVs to concentrate on selling big-ticket—and more profitable—power plants, rail lines and water treatment facilities.
While other Japanese electronics firms continue to suffer from losses in consumer products and the punishing impact of the strong yen, Hitachi—Japan’s largest electronics manufacturer—has posted a second year of record profits
So what is Mr. Nakanishi’s next move? By the year 2015, Mr. Nakanishi’s goal is to double the profit to almost 10%. Ten percent doesn’t seem like much when you consider that some companies have 20% to 30% profit, but when you consider the size of Hitachi, a 10% profit margin is huge.
Vision
So how was Nakanishi able to turn the company around so quickly and drastically? He had a vision. He determined where he envisioned the company in the future. When he set his vision, he set it very high. I would imagine that when he set it, he probably didn’t even know how he was going to reach his vision.
As a leader, you should also set a vision for yourself and your company. Your vision should stretch you! When you set your vision, it should be your top goals that may seem nearly impossible to obtain. Think about the vision Mr. Nakanishi set. Who would’ve thought three years ago that Hitachi could turn around so drastically? They were suffering record declines in the organization and now they are experiencing record profits. At that time, no one would have thought his vision was realistic, but now it seems much more realistic.
When you set a vision for yourself or your company, you should put it in a place where you can see it every day. In addition to having it in a visible place, you should make it a point to read it every day so you keep it relevant and on your mind. Another important fact about your personal vision, not necessarily the company’s vision, is that as you grow and evolve you can change your vision. Maybe what you had as a vision a year ago isn’t as relevant now as it was then. Or, you may have changed your priorities so it isn’t something that you want anymore. If that is the case, adjust your vision to fit your change in priorities.
If you don’t have a vision for yourself or your company, you won’t have a direction. Without a vision, you will just wander aimlessly. The vision will help you have purpose. It will give you direction as you go forward. It will also give you a sense of stability because it will help you know you are accomplishing something every day. A vision will help to reach greater heights in your life and in your career.
Have you set a vision for yourself? How has it helped you in your life? Why is having a vision important to you? Please share your thoughts and comments in the comments section below!
What a very positive blog in some very tough times. I believe when one sets visions for their lives they can experience great success. For example I am returning to college and while I feel like I may be one of the oldest in class I am excited and am moving forward with a spring in my step. There will be so many resources available through engaging with a younger group of people and the things I will learn not just from the courses, but from the young men and women I will meet will be priceless.
Welcome Valerie!
Thank you for sharing your comment. I love your positive outlook on life. We have so much to be grateful for that it is hard not to be positive. As you mentioned, a vision for our life can do a lot to change how we see things. We can be positive and happy as we work towards obtaining our vision because the journey will be great and the end result will be even greater! Thanks for sharing your thoughts!
Kind of an interesting post but you really say very little. Sure vision is important … we all have that in one respect or another. But you don’t describe the vision or the circumstances, surely there are factors involved. Respectfully, this is kind of a blah blah blah post that the web is laden with. Find some reality to focus on and I’m sure you will get a better reception. There are a million of you guys and gals trying to sell some sort of “leadership skills” or “motivational training” or “inspiration” … but it is the same phony story. Get some real skills and then you can convey them.
Welcome Charles,
I appreciate your feedback. I am very sorry that you did not find this post informative. I try really hard to write blog posts with good content that will be beneficial to the readers without being too lengthy. Thanks, Brandon
Hi, Brandon,
I totally agree with you that Vision is very important. Many company started with a vision that seemed crazy by many. Yet, it is this initial seed that would bring positive changes to a brighter future!
In this world, we need more visionary leaders – in life and business!
My vision is to empower stay-at-home mums to take control of their financial future!
I appreciate your inisghts, Brandon 🙂
Viola The Buisness Mum
Welcome Viola!
I really appreciate your comments and support!
I completely agree with you that visionary leaders are important. It seems like everyday there is a new story about a leader that failed because either they didn’t have a good vision or they let someone else’s vision overpower them. Leaders need to have a value centered vision now more than ever.
I really like your vision to empower stay-at-home moms to take control of their financial future. My wife is a stay-at-home mom and she is very empowered when it comes to our finances. Thanks, Brandon
When I first read Stoke’s comment I sort of nodded my head in agreement. Upon further review of the article I think I disagree for the most part. Perhaps Brandon could be a little more detailed to know what exactly was done to make Hatachi more successful. However, I think that more detailed information would produce a long drawn out article several pages long, which would make it very difficult to stay interested. This article was detailed enough to show the company’s success and vague enough for us to apply the point into our own lives. As I have stated in previous comments personal experience will set your blog apart from all the other “…blah blah blah…” posters.
Joe,
I appreciate your insight. As you pointed out, I didn’t want to put in too much detail because by doing that I would lose my audience. It would end up being a case study several pages long and not just a blog post. I will, however try to include more personal opinions and thoughts on how each subject effects me. I have started trying to do that a little more lately and I think it is making the posts a little better. Thank you again for your valuable feedback.
The comments about vision speak for themselves. It is up to us to nurture and develope whatever vision we may have within ourselves. If we are leading a group of people or have our own personal goals, vision is important. The article above provides the tools needed to keep the vision or dream alive within us. The example given was a great example to review and to learn from. Mr. Nakanishi had passion which gave him the drive to see the vision come to pass. To see any vision come to pass there must be action on the one who is pursuing that vision or goal. Good article, to the point!