Notable Moments
Reviving Japan Airlines (2010): Transplanting Kyocera Philosophy and Amoeba Management
In January 2010, Japan Airlines (JAL) filed for bankruptcy protection under Japan's Corporate Rehabilitation Law, with the largest debt of any company since the end of WWII: 2.3 trillion yen ($25 billion).
At the urging of the Japanese government, Inamori accepted the position of chairman in order to spearhead JAL's restructuring.
Three separate reasons motivated Inamori to undertake this crucial task despite the strong opposition of those around him. First, he wanted to prevent an economic disaster in Japan if JAL were to suffer a second bankruptcy; second, he wanted to protect the jobs of the remaining JAL employees; and third, he wanted to benefit the public by maintaining fair competition in the marketplace.
At the time of the bankruptcy, JAL employees lacked a sense of crisis and ownership; there seemed no unity among them. Restructuring, it was reported, would be impossible. Under such circumstances, all that Inamori brought with him to JAL was the management philosophy he had implemented at Kyocera and his managerial accounting system, Amoeba Management.
By creating the JAL Philosophy, based on the Kyocera Philosophy, common values were established, and employee mindsets began to change.
In introducing the Amoeba Management System, all JAL employees began to develop a management mentality, and began to focus on proactive ways to maximize revenue and minimize expenses within their own departments.
As a result, although JAL had previously suffered continuous deficits, it was transformed into the world's most profitable airline, posting an operating profit of 188.4 billion yen ($2.35 billion) in the fiscal year following the completion of the restructuring.
In September 2012, JAL was able to relist on the Tokyo Stock Exchange after a relatively short period of two years and eight months after declaring bankruptcy.