Critical Boardroom Changes
By Steve Smith -- TWICE, 6/12/2000
If I remember correctly, there are two theories of history. The first one is that leaders can control and change the times they live in. The other is that sociological, economic, political and religious forces, among others, control history. Even strong leaders have little or no effect on their times.
Obviously, two of the most important consumer electronics manufacturers in the world seem to believe in the former theory, namely that key leaders can steer their corporate destinies in the new world order of digital technology. Within weeks of each other this spring both Sony Corporation and Matsushita Electric Industrial Company named new executives to head worldwide and U.S. operations.
Some wags explained the changes by saying that because one bitter rival made a move, the other had to do the same. Others said it showed an innate belief in the millennium, that each company wanted to show a symbolic fresh start in this new century. Maybe symbolism is correct on a certain level. Changes at both companies dramatically distanced longtime executives from day-to-day decision-making.
In naming Kirk Nakamura president of Matsushita Electric of Japan, Masaharu Matsushita, chairman of the company since 1977 and son-in-law of company founder Konosuke Matsushita, was replaced as chairman by Yoichi Morishita. Matsushita is now honorary chairman and executive adviser.
At Sony, Nobuyki Idei has become chairman/CEO, while at the same time, Norio Ohga, a longtime friend and colleague of founder Akio Morita, was named chairman of the board -- a new position.
Quickly, both companies made new appointments to manage its largest market, the United States. Sony not only named a new president for Sony Electronics, but reorganized all of its consumer electronics businesses into one unit: Sony Consumer Electronics Group (CEG).
Fujio Nishida, an executive with more than 20 years of company experience worldwide, was named president of Sony Electronics. In turn, Nishida asked Mike Vitelli, another two-decade Sony executive, to come back from the Sony Broadcast and Professional Company, where he was executive VP, to become president of CEG. Among Vitelli's responsibilities in his previous stint in Sony's CE business to help introduce MiniDisc to the U.S. market in the early '90s.
At Matsushita Electric Corp. of America, Don Iwatani, a 22-year executive who was named president of Panasonic Consumer Electronics in 1996, was named chairman and president. Andy Takani, who was president of Panasonic West, succeeded Iwatani as president of Panasonic.
While I can't say that I'm an intimate of Idei, Nakamura, Nishida or Iwatani, I have either interviewed them or attended press briefings during the past couple of years where they outlined their views on various industry issues. All are quite aware of the digital crossroads the industry is facing. Digital technology is not only changing existing product categories, it is adding new ones. Digital communication, namely the Internet, is changing the industry's role and relationship with both retailers and consumers.
These challenges, plus the yen/dollar exchange rate that all Japanese manufacturers have to deal with, are sobering realities to these executives.
It wouldn't be a stretch to say that decisions made by these newly appointed executives in the near term, plus the decisions of counterparts at other top vendors, will be critical for the long-term future of their companies. Their decisions, plus the decisions of top retailers, content providers, trade associations and regulators will determine how quickly and profitably digital products of all types will be accepted.
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