Question

Video Transcript:

>> A private jet is an American CEOs perk, but not the CEO of Japan Airlines. He comes to work on the city bus. Haruka Nishimatsu knocked down his office walls so anyone can walk in. He buys his suits at a discount store, because a boss who wears Armani puts himself at arm's length from his people.

[ Speaking Foreign Language ]

"If management is distant, up in the clouds, people just wait for orders," he told us. "I want my people to think for themselves." And meeting his people means popping into planes, chatting with flight attendants, even sorting the newspapers.

>>I'd like to just find what is going on.

>> What's going on?

>> Well, at the front line.

>> All CEOs say that service is important, but Nishimatsu goes a step beyond. 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. The person in charge here walks the walk. Look up and there's the boss. Got an idea? Catch him at lunch in the company cafeteria. His salary for running the world's tenth largest airline not millions, but one year as low as $90,000; when he was forced to cut salaries for everyone else, he also cut his own.

[ Speaking Foreign Language ]

"My wife said, 'What?'" To him, a leader shares the economic pain.

[ Speaking Foreign Language ]

"I feel close to him," says flight attendant Akiko Isobe [assumed spelling]. "It's encouraging." These days all airlines are struggling. Even at reliably profitable Southwest, it's time to tighten belts.

>> It will not work if leaders treat themselves one way and their employees another way. Nishimatsu says a CEO doesn't motivate by how many millions he makes, but by convincing employees you're all together in the same boat-- a spirit that could help survive the current economic storm.

Answer the following questions:

1 - The story in the video describes how the CEO of Japan Airlines, Haruka Nishimatsu, serves as an example of:

a.establishing measurable goals for a company's success.

b.internal analysis of a company's assets and resources.

c.several of the characteristics of a high performing strategic leader.

d.the way a strategic leader creates a formal strategic plan.

2 - Nishimatsu's open-door policy, knocking down office walls, eating with employees in the cafeteria and meeting with managers who have ideas is:

a.a process for implementing a SWOT analysis, focusing on threats present in the industry.

b.a way to decentralize planning or promote strategy as an emergent process within his organization.

c.a means for executing scenario planning with his top leadership team.

d.a process for developing the mission statement.

3 - Nishimatsu's habit of chatting with flight attendants and working alongside them is one of the key characteristics that lead to a high-performing organization. Which is it?

a.Articulation of the business model

b.Being well informed

c.Willingness to delegate and empower

d.Astute use of power

4 - The employees believe that their CEO is approachable and "feel close to him." The CEO is demonstrating:

a.emotional intelligence.

b.illusion of control.

c.reasoning by analogy.

d.being well informed.

5 - The decision to take less salary in a year when the company was less profitable and employees' pay was cut is an example of Nishimatsu's:

a.commitment.

b.dialectic inquiry.

c.illusion of control.

d.hubris.

6 - Many of the things described in this video are leadership traits that strategic managers might aspire to, but they might also lead a manager astray. Identify which of these cognitive biases might come into play as a result of Nishimatsu's leadership style.

a.Escalating commitment

b.Devil's advocacy

c.Representativeness

d.Availability error

Answer 1

1. C. several of the characteristics of a high performing strategic leader

Nishimatsu has the long term view for the company wherein he believes that through his actions and behavior, he sets the course of action and belief for his employees. This would ensure the long term survival and growth of his company and its people together.

2. B. A way to decentralize planning or promote strategy as an emergent process within his organization

Nishimatsu strongly believed that novel ideas can come from any of his employees in the firm. Hence, he did not limit all decision making to the upper echelons of the organization but instead got ideas and promoted a spirit of knowledge sharing throughout the organization.

3. B. Being well informed

Nishimatsu strongly believed in experiencing the service provided by his company first-hand. It is only when the experience is first-hand, will it be possible to gauge customers’ response to the offering. Along with that it was a nice way to connect with his employees and understand the issues and difficulties faced by them while they are fulfilling their duties.

4. A. Emotional Intelligence

It is the connect at an emotional level that ensures employees’ retention and growth of the company as a whole.

5. A. Commitment

Nishimatsu displays extreme sense of belief in the company and its capability to revive its fortunes in the coming years. He wants to display that the company as a whole is undergoing some tough times currently and will rise together and grow in the years to come.

6. C. Representativeness

The actions shown here is a representative of the philosophy Nishimatsu believes in and has certain other ways to deal different scenarios too.