Monday, March 28, 2011

Soichiro Honda – The free spirit


Recently I gave a talk about founder of Honda Motors, as part of speeches in Toastmaster's club in Citrix (my employer) . Written version of that.


                                       Soichiro Honda – The free spirit

Whenever you think of Japanese auto industry, for that matter Japan, first thing that comes to mind is Toyota.  Hundreds of books have been written about manufacturing efficiency, quality control of Toyota and how did they conquer the world. I would like to throw light upon Honda, comparatively young and maverick auto company.

Honda was founded by Soichiro Honda in 1948, right after World War II. During that time, gasoline was strictly rationed, there was not enough fuel. Honda took 50 cc left over engines from Japanese military and fitted them into bicycles. They started selling like hot cakes. Lot of people started criticizing him that it’s outrageous to produce these machines, when country is in fuel shortage. So he went ahead and bought some forest land, and squeezed raisin out of pine trees and mixed in fuel. Getting more out of less, was how Honda survived after War, and the experience deeply influenced his career and his company.

Soichiro Honda – What was he like. He hated reading writing, but he was fascinated by technology. A born engineer – eager, intuitive and self taught and a Mechanical genius.
He never finished college, in a country where university degree is most sought after. He drank to excess and drove recklessly. Because of this kind of background, it was very hard for him to attract customers and convince banks initially.

He had distaste for university degrees. His initial team was full of discards from Toyota, Nissan. Usually people who had very good understanding of mechanical engineering, but not a good fit in mainstream industry because lack of degree from reputed university. He used to brag that he found better and more creative engineers by hiring engineers who are not from prestigious university. He hated executives from Toyota, Nissan etc.  Because for Honda, they represented Japan’s Tokyo university elite and other things he could not stand about Japan’s establishment.

Titles, age and degree were of very little importance to Soichiro Honda, He always followed principle of “ability first”. Young people were given bigger responsibilities and allowed to make mistakes. This was a big influence at Honda motors. At a meeting any subordinate could stand up, and give his opinions. So Honda engineers were a different breed from their counterparts at other Japanese automakers. You could see it in their faces. They were more animated, less guarded and less formal.


So if Toyota succeeded because of excellence in efficiency and quality. Honda motors took the other route and succeeded because of its unorthodoxy, speed and flexibility. While doing so it changed other automakers like Toyota, Nissan in general Japanese industrial establishment.

PS: By the way if you guys are curious about what car I drive, I drive a Honda (Acura)!

Lessons learn t:

You can convert limitation into opportunity.
Do not judge a person based on educational credentials or lifestyle. (Always ability first).
You can achieve quite a lot without godfathers, if you are determined.
Not everyone will be innovative and ground braking from day one.
Innovation does not mean, it has to be disruptive, totally new and path breaking. Hundreds of small improvements can be as effective.