The media and other firms now seek their views on corporate re-engineering and how to inject new thinking into old enterprises. Early this decade, Hoya saw its profits fall by half, as Japan's economy slowed and the 1980s economic boom went still. Most of its production and sales were domestic, meaning Hoya faced high costs, while sales dropped. With Suzuki as chief strategist and Yamanaka his faithful, soft-spoken general, the new partnership launched a drastic rescue mission. That motivated us to restructure much earlier than others.
Bold leadership is still a rarity in Japan.
Indeed, Both Suzuki and Yamanaka were initially criticized for being too tough. But their decisiveness proved to be the key to success. One of Yamanaka's first moves was to streamline operations, trimming profit-poor divisions and investing in growth sectors. Sales at the crystal division, for example, had been falling, while its aging workforce was growing more costly. The strong yen was losing Hoya business to Eastern Europe.