Why don't management philosophies "permeate" the company? Insights from 20 years of philosophy-based management: The concept of "using" the philosophy.
Why don't management philosophies "permeate" the company? Insights from 20 years of philosophy-based management: The concept of "using" the philosophy.
"We understand that our management philosophy is important, but we don't feel like it's truly permeated our company." This is a question we frequently receive from business owners in our branding work. The philosophy may be framed and displayed on the wall, or the code of conduct may be printed in small letters on the back of a business card. It exists, but it doesn't translate into daily decision-making. A survey by Persol Research Institute found that while 41.81 TP3T of employees answered that they "fully understand" the content of the company philosophy, and 44.51 TP3T of employees answered that they "agree with" it, only 20-301 TP3T of employees actually answered that they "consciously perform their work" or "naturally embody" it. Understanding and empathy exist, but it doesn't translate into practice. I believe this gap is the barrier to management based on philosophy that many companies face.
I myself have hit this wall many times. I've been running a global branding agency in Nagoya for over 20 years, but in the beginning, we didn't have a clear philosophy. Each member made decisions based on different criteria, and as a result, the founding members ended up splitting up. From that bitter experience, I arrived at the idea that "a philosophy is not something to be proclaimed, but something to be used." In this talk, I will share the details of putting this into practice and why this idea is especially important now that AI is starting to take on decision-making tasks, drawing on my own experiences as a business owner.
Management philosophy is shifting from something to "something to proclaim" to something to "something to use."
When people hear the term "philosophy-based management," many might imagine "framing and displaying impressive words." However, what I've learned from over 20 years of practice is that philosophy is not something to be displayed, but rather something to be actively used in daily work, as a "foundation" to return to when faced with difficult decisions. If I were to define philosophy-based management in my own words, I would say it's "a management style that incorporates philosophy as a criterion for decision-making into operations, creating a situation where each member can make decisions based on the same principles without the need for constant instructions from management." If correct decisions can only be made within the scope of management's oversight, the organization cannot grow beyond its current size.
So what we changed was repositioning our philosophy from something we "proclaim" to something we "use as a criterion for judgment." In the hiring process, we use our philosophy to determine if a person aligns with our company's values. In performance evaluations, we use our philosophy to logically explain "why this evaluation was given." In daily communication, team members who were previously looking in different directions begin to speak using the same criteria for judgment. Once the philosophy starts to function, the organization begins to operate autonomously without the need for detailed instructions from management.
Why is it now being questioned whether ideals are "usable"?
I don't think this issue can be dismissed as mere abstract ideals. Rather, my feeling is that we've reached a point where the question is whether our management philosophy can actually be put into practice.
As the adoption of generative AI progresses, routine tasks in the workplace will be replaced by AI. Information gathering, drafting documents, creating initial proposals—many tasks that once had value as specialized skills are being raised from minimum quality by AI. As a result, the jobs that remain for humans will relatively increasingly involve "decision-making." What to choose, what to discard, what to prioritize. Organizations that lack a framework to support these decisions risk being overwhelmed by the multiple options presented by AI.
In other words, the more proficient AI becomes, the more the value of human principles—the source of human judgment—will increase rather than decrease. That's how I see it. There will be a huge difference in the speed of response in the age of AI between companies that merely frame their principles and display them, and those that actively use them as tools for daily decision-making.
Three practical points for "using" your philosophy
So, what exactly does it mean to "put" a philosophy into practice? I'll share three key points that we've found to be effective through 20 years of trial and error.
We will use this as a hiring criterion.Beyond skills and experience, we use our company philosophy as a criterion for determining whether a person aligns with our values. Deciding not to hire someone who doesn't fit, no matter how talented, may seem like a missed opportunity in the short term, but in the medium to long term, it protects organizational cohesion.
It will be used as an evaluation criterion.The key is whether you can logically explain "why this evaluation was given" based on principles rather than personal preferences. Having a framework that is not influenced by the evaluator's subjectivity makes a difference in how satisfied the person being evaluated feels with the evaluation.
To use as a common language in daily conversations.When opinions clash, the discussion should focus not on "who is right," but on "which approach is more appropriate in light of our shared philosophy." Being able to communicate on the same level, regardless of position or title, supports the organization's speed and efficiency.
What they all have in common is that they treat the philosophy not as an "emotional issue" but as a "tool for judgment." It's not about whether you agree with the philosophy or not; it's about translating it into practical matters—what can be derived by applying that philosophy to the decision at hand? Only when it's made this concrete does a philosophy become something that can be "used" in the field.
What "Opening the Way" teaches us: Making philosophy a part of ourselves
It was Konosuke Matsushita's "The Way Forward" that gave me the impetus to return to this way of thinking. More than half a century after its publication, it continues to be read and has become a long-selling book with over 5 million copies sold. In March 2026, a new commentary book, "Konosuke Matsushita's Direct Instruction: Management That Opens the Way," was published, and in May of the same year, the Konosuke Matsushita Management Academy for business leaders was opened, demonstrating that it continues to be read as a relevant management philosophy even in the Reiwa era.
I believe the reason this book has been so enduringly popular is that it's not filled with abstract philosophical theories, but rather with practical words woven from Konosuke Matsushita's own experiences that can be used in everyday decision-making. Ideals and philosophies produce nothing as long as they remain as lofty words. They only become "part of you" when they are connected to your own judgments and actions. I think it's because Konosuke Matsushita continued to use this philosophy in his practical work for many years that these words have become timeless and continue to be read.
Our approach to values-based management, while on a completely different scale and with a much longer history, shares the same underlying philosophy. A philosophy isn't something you simply declare and expect to be satisfied with; it only gains meaning when you repeatedly return to it when you're lost and truly put it into practice. After 20 years of practice, I've finally come to understand this firsthand.
Ideals are not rules that will bind our future selves.
The term "philosophy-based management" sometimes carries a negative connotation, suggesting that it involves "confining employees to a mold." However, the philosophy-based management I have practiced is the opposite. Because the criteria for judgment are shared, each member can think for themselves and act autonomously without the need for detailed instructions from management. Philosophy is a foundation for freedom of action, not a set of rules that will bind our future selves.
Now that AI has begun to take on some of the decision-making tasks, I believe it's time to rethink our management philosophy from something we merely "post" to something we "use." If your company's philosophy is simply sitting on the wall, it's worth taking a moment to consider how it can be used in today's decision-making.
We have helped our client companies articulate their philosophy and vision, and structure it into a form that can actually be "used" in recruitment, evaluation, and daily decision-making. We don't just want to redefine the philosophy; we want to be a partner that works alongside business leaders to consider how to translate it into practical decision-making criteria.
WRITTEN BY
Ichikawa Atsushi
Representative Director and Chairman
After starting his own business at the age of 26, he has over 20 years of management experience in the design and branding fields. In 2016, he moved with his family to the Philippines and established a local IT outsourcing company, leading its global expansion. Currently, as a "GLOBAL BRANDING AGENCY," he supports the growth of companies while also actively working on organizational reforms within his own company. Based on the real-world struggles and firsthand information he has faced in organizational development and overseas management, he shares practical branding and organizational theories that are thoroughly aligned with the perspective of business leaders.
