CEO of the People Japan Airlines - Haruka Nishimatsu CBS News - Feb. 8, 2009 Current Events Article Summary - Theodore V.G. Wolfs - MGT 453

1. Current Events Article Summary
Theodore V.G. Wolfs - MGT 453

2. U.S. Economy
 “Mortgage Foreclosures Reach All-
Time High” - The Washington Post
 “The U.S. Economy Faces the
Guillotine” - Newsweek
 “Poll on the economy: Americans
gloomier, for now” - USA Today
 “U.S. Unemployment Rate Jumps
To 7.2 Percent” - NPR.org
Record Home Foreclosures
Economy in Recession
Record Unemployment

3. U.S. Economic Bailout
“Bailout tab: $700,000,000,000 Democrats
seek strong oversight” – LA Times

4. U.S. Financial Executives
“Outrage Leads AIG To Cancel Second Luxury
Retreat” – ABC News

5. U.S. Auto Executives
“Congress Members Criticize Auto Executives’
Corporate Jet Travel” - WSJ.com

6. Economy in Recession
Are They Not Aware?
Record Home Foreclosures
Record Unemployment

7. U.S. Executive Compensation

8. U.S. Pres. Executive Orders
 “Obama Freezes Pay For White
House Employees, Limits
Lobbyists”– CBS News
 “Obama Lays Out Limits on
Executive Pay Firms That Get Bailout
Funds Face $500,000 Salary Cap, Must Disclose
Luxury Purchases; A Move to 'Claw Back'
Bonuses”– WSJ.com

9. CEO of the People
Japan Airlines - Haruka Nishimatsu
CBS News - Feb. 8, 2009

10. Background
 Haruka Nishimatsu, CEO of Japan Airlines,
the 10th largest airline in the world.
 “One year his pay was $90,000 because
when he had to cut salaries, he also cut his
own.” – CBS News

11. Leadership Style
 “ There’s no one person being on top and
one person being on the bottom, in an
organization such as ours.” – CBS News
 “He says that if you’re having a bad
experience, don’t get angry with the people
you’re dealing with…blame the person in
charge.” – CBS News

12. Leadership Style
 A moral and servant leader.
 He understands that times are changing and
that he must change to keep his company
afloat.
 He has a shared sense of responsibility and
lets his employees know he is struggling
with them.

13. Leadership Style
 You will often find him at the front lines of
his organization, talking with lower level
employees, seeing first hand the company’s
customer service, complementing the staff,
and being accessible to all.
 In return he receives respect from all levels
of employees and a high commitment level
to the company. His employees are proud to
work for him and Japan Airlines.

14. Why is it Relevant Now?
 The current public outrage and resentment
against executive compensation and all the
perks.
 Haraku Nishimatsu’s simple philosophy, ”A
boss is in the same boat as his people.
Either you share the work and sacrifice
together, or the company may sink in this
economic storm.”

15. What have I learned?
 Maybe we should not focus on putting in
leaders who only value high pay and
excessive perks, but those who love the job,
the company, and its people.
 Smart but humble leaders are those who
aspire to increase stakeholders’ wealth and
maintain concern for the greater good.

16. What have I learned?
 The answer may lie in the difference
between what is the leader’s preference of
transportation, a leader who takes the bus or
a corporate jet?

17. CEO of the People
Japan Airlines - Haruka Nishimatsu
CBS News - Feb. 8, 2009
Japan CEO takes the bus - CBS News Sunday Morning

18. Discussion Forum…
 What are your impressions of this
CEO, Haruka Nishimatsu?
 Do you think that his model of
moral behavior is what the leaders
of today should be exhibiting given
the current business environment?
 If so, what are the obstacles
preventing the leaders of today
from modeling such behavior?

19. CEO of the People
Japan Airlines - Haruka Nishimatsu
CBS News - Feb. 8, 2009
Current Events Article Summary - Theodore V.G. Wolfs - MGT 453