“Masayoshi Son, in the globally reorganizing telecommunications industry, acquired the Japanese subsidiary of Vodafone for about 2 trillion yen. While Vodafone had consolidated sales of 1.47 trillion yen and an operating profit of 158 billion yen (both in the fiscal year 2004), SoftBank, for the fiscal year ending March 2005, had consolidated sales of about 840 billion yen and an operating loss of about 25 billion yen. It had been posting deficits of several hundred billion yen up to that point. The acquisition of Vodafone Japan was precisely an M&A where a small entity swallows a larger one. At that time, to compete with NTT and KDDI as a telecommunications infrastructure provider, SoftBank was heavily investing in Yahoo BB and had just acquired Japan Telecom, a fixed-line phone company.”
Son's Square Law (translated)
Hidenori Itagaki
274 highlights · 18 concepts · 153 entities · 3 cornerstones · 5 signatures
Context & Bio
Japanese-Korean entrepreneur who built SoftBank from a two-desk software wholesaler into a $6+ trillion yen telecommunications and internet conglomerate, guided by a self-created 25-character decision framework fusing Sun Tzu with original strategic principles.
Japanese-Korean entrepreneur who built SoftBank from a two-desk software wholesaler into a $6+ trillion yen telecommunications and internet conglomerate, guided by a self-created 25-character decision framework fusing Sun Tzu with original strategic principles.
“Based on this idea, Son continued to explore what business to pursue for a year and a half. Every time he came up with an idea and developed a business plan, he applied “Nine Conditions” to filter it. The “Nine Conditions” were as follows: [Condition One] Once a business is undertaken, it cannot be stopped halfway. Therefore, it must be a sustainable business. [Condition Two] Naturally, it must be a profitable business. [Condition Three] It must be a growing industrial sector. The industry structure itself must not be in a recession or decline. [Condition Four] It must be a business that can become the core of a future corporate group. [Condition Five] It must be a business that cannot easily be imitated by others. [Condition Six] It must be a business that doesn’t require large capital investment. [Condition Seven] It must be a business that is useful to society and contributes to societal development. [Condition Eight] It must be a business that one can engage in interestingly. [Condition Nine] If you undertake it, you must absolutely become the number one company in that field. If you can’t become number one, don’t even start.”
“During his time at the University of California, Berkeley, Masayoshi Son thought, “It would take many years to save up starting capital for a business through part-time jobs. I have to make money through invention.” And he mandated himself to “continue to make one invention per day for a year.” He calculated that if what he came up with was practical, he could expect an income of over one million yen a month from patent royalties.”
In 2 books
In 2 books
In 2 books
“I have read thousands of books and gone through various experiences and trials, and with these 25 characters, I truly believe that by achieving and reaching this, I can exhibit leadership, become a successor, and a true leader.”
Son at the SoftBank Academia opening ceremony, explaining the 25-character framework to successor candidates.
“I don't even attempt fields unless I'm confident I can become overwhelmingly number one. I only engage in fields where a strategy to become overwhelming number one is visible.”
Son explaining his 'number one principle' and why he refuses to enter any business where dominance isn't achievable.
“I have never thought for a moment that there's a chance just because it's a niche or a gap. Rather than that, even if that industry or segment is small now, if in five, ten, or thirty years it will become mainstream. I have always chosen that.”
Son rejecting conventional venture wisdom about targeting market niches, insisting on aiming for future mainstream centers.
“The fruit obtained by luck in a haphazard manner will not last for success. What one obtains through mere grit at that time will not last. You have to create systems, mechanisms, and rules to build a large organization.”
Son at SoftBank Academia explaining why systematic structures matter more than individual grit or luck.
“Even if you cut off a lizard's tail by about thirty percent, it will grow back. If you cut off half, the guts will spill, and it will die.”
Son explaining his 70% rule—why you must take risks but never bet more than 30% of what you can't afford to lose.
Son learned to use forced hospitalization productively by reading 3,000+ books including 30+ commentaries on Sun Tzu, transforming illness into the intellectual foundation for his entire management framework.
Why linked: Shares Masayoshi Son, SoftBank, and Microsoft.
“The “Son’s Square Law” is something Masayoshi Son has adhered to each time he stood at a crossroads in management, using it as a guide for judgment and decision-making. Whenever facing new challenges or projects, he consistently recalled these “25 characters,” repeatedly questioning himself while deciding the direction of business.”
“At the age of 19, Masayoshi Son created a “50-year life plan.” 20s - Make a name 30s - Save funds 40s - Make a decisive move 50s - Complete the business 60s - Pass on the business to the next generation”
“Imagine the view from the summit “before climbing””
“In his lecture at the “SoftBank Academia” inauguration, Son spoke as follows: “I have read thousands of books and gone through various experiences and trials, and with these 25 characters, I truly believe that by achieving and reaching this, I can exhibit leadership, become a successor, and a true leader.””
“At the beginning of the interview, Son gave me a colorful and beautiful high-end paper printed with the “Son’s Square Law,” which consists of 25 characters. It was the moment I first saw the “Son’s Square Law.””
“However, despite Son’s earnest explanation, I carelessly did not realize at that moment that this “Son’s Square Law,” along with the “50-year life plan,” constituted a crucial part of his management methods.”
“Masayoshi Son suddenly changed the arrangement of each segment of twenty-five characters to the current order the day before the “SoftBank Academia” opening ceremony. In an interview twenty-four years ago, in response to my question, “What is absolutely necessary for a manager?” Masayoshi Son replied as follows. “There are three important things that the top management must have in place to exercise leadership. They are <aspiration, vision, strategy>. Moreover, there is an order of importance to these. It is in the order of <aspiration, vision, strategy>.””
“Draw the move that becomes the “shortest path to realizing the vision””
“To be appreciated by people 300 years in the future, “fight””
“Cannot waste even a moment of precious time”
“Appear calm “like a mountain” on the surface, while struggling hard beneath”
“The driving force behind it has been the “Law of Son Squared,” consisting of 25 kanji characters arranged in five characters horizontally and vertically.”
“The company has successively made subsidiaries out of companies like PHS’s Willcom, eAccess, which operates “eMobile,” and GungHo Online Entertainment, known for the smartphone game “Puzzle & Dragons (Pazudora).” In July 2013, it acquired the third-largest US mobile phone company, Sprint Nextel, for about 2 trillion yen, and Masayoshi Son became the chairman of the renamed Sprint Corporation.”
“Currently (mid-May 2014), SoftBank is actively pursuing various initiatives to acquire T-Mobile US, the fourth-largest US mobile provider. If this acquisition occurs, SoftBank would become the world’s second-largest mobile communications company after China Mobile.”
“Masayoshi Son has consistently set high goals that everyone laughed at as being “impossible to achieve,” yet he has always realized them.”
“Having achieved the top position in Japan, his next goal is to become “the number one mobile internet company in the world.” No one scoffs at this as “grand ambitions” or “pipe dreams” anymore.”
“On July 28, 2010, Masayoshi Son opened the SoftBank Academia with the goal of discovering and nurturing successors. He personally serves as the principal and provides direct guidance. Participants are recruited widely from both within and outside the SoftBank Group. As soon as recruitment began on the day of the opening, applications flooded in from thousands within less than a day. Almost four years after its opening, some alumni from the SoftBank Academia have already been appointed to top positions in group companies.”
“◆“A 50-year life plan” Established at Age 19”
“At the young age of 19, he established the following “50-year life plan”: In his twenties, he would enter a self-chosen industry and start a company. In his thirties, he would build up capital. The minimum unit of capital would be at least 100 billion yen. In his forties, he would undertake a major project. The scale of the project would be measured in trillions of yen. In his fifties, he would complete the business to a certain extent. In his sixties, he would transfer the business to the next generation. Masayoshi Son has conducted his business based on this plan ever since. As of May 2014, Masayoshi Son is 56 years old. He is at the stage of “completing the business in his fifties,” but the scale of the SoftBank Group’s revenues already exceeds 6 trillion yen significantly, equivalent to achieving his goal.”
“そんな孫正義が、「ソフトバンクアカデミア」で自らの後継者候補に、最も教え伝えたいと考えているのが「孫の二乗の法則」である。事実、「ソフトバンクアカデミア」の開校式で行なわれた特別講義で、孫が真っ先に取り上げたのもこの「孫の二乗の法則」だった。”
“これは、孫正義が二十代中盤のころに自ら開発した経営指針で、世界的に有名な兵法書『孫子』からピック・アップした言葉に、孫正義が独自に考え出した「オリジナルの言葉」を組み合わせた「二十五文字」の「文字盤」で表されている。 縦五段、横五文字の「二十五文字」は、横に読む。縦に読むと意味がわからなくなる。上の段から次のように順次、読んでいく。 道天地将法＝どうてんちしょうほう 頂情略七闘＝ちょうじょうりゃくしちとう 一流攻守群＝いちりゅうこうしゅぐん 智信仁勇厳＝ちしんじんゆうげん 風林火山海＝ふうりんかざんかい 一段目「道天地将法」と四段目「智信仁勇厳」、五段目の「風林火山」は『孫子』の一節をアレンジしたもの、二段目「頂情略七闘」、三段目の「一流攻守群」、五段目「海」は、孫正義の創作、つまりオリジナルである。 「孫の二乗の法則」は、孫正義が経営の岐路に立ったとき、その都度、拳けん拳けん服ふく膺ようして、判断と決断に役立ててきたものである。新規事業に挑むときや新しいプロジェクトをスタートするときなど、新たな局面や分岐点を迎えるたびに、常にこの「二十五文字」を頭に思い浮かべ、何回も自問自答を繰り返しながらチェックし、進むべき道とビジネスのありようを決断してきたのだ。 孫は「ソフトバンクアカデミア」開校式の講義で、次のようにも語っている。 「いままで僕は何千冊の本を読んで、あらゆる体験、試練を受けて、この二十五文字で、これを達成すれば、到達すれば、僕はリーダーシップを発揮できる。後継者になれる、本当の統治者になれるというふうに心底思っている、その二十五文字です」”
“Son openly declares, “I have admired Ryoma Sakamoto since childhood,” and has embodied that passionate spirit by seeing himself in Sakamoto Ryoma’s image. While Ryoma Sakamoto opened the door to the Meiji Restoration at the end of the Edo period, Masayoshi Son, as the forerunner, opened the door to the “digital information society.” He truly deserves the title of “revolutionary” who faces challenges wholeheartedly.”
“In a special lecture at the opening ceremony, Son stated that “dao, heaven, earth, general, law” signifies “ambition (philosophy),” “peak, emotion, strategy, seven struggles” means “vision,” and “first class, attack and defense group” represents “strategy.””
“Reflecting on the interview from twenty-four years ago, it’s possible to say that he organized them in the order of ambition, vision, and strategy as he had explained. In other words, the new arrangement is correct in the order of ambition, vision, and strategy.”
“When Masayoshi Son once put “first class, attack and defense group” at the top, it was probably an expression of his burning ambition to be number one at all costs. Now that it is at the top of the IT industry, he must have felt that arranging them in the order of ambition, vision, and strategy was the most natural and appropriate way to explain this “Son’s Square Law.””
“When hitting a wall or when things just don’t go well, looking back at this will surely reveal the “key to overcoming the current situation.””
“In this book, Chapters 1 and 2 will introduce how Masayoshi Son developed the “50-year life plan” and “Son’s Square Law” following the chronology. Chapter 2 will also explain in detail the definitions and meanings of each of the twenty-five characters. Furthermore, from Chapter 3 onwards, we will specifically reflect on how Son has utilized the “Son’s Square Law” in the process of executing and realizing the “50-year life plan”, revealing how effective this weapon has been. By doing so, we aim to analyze Masayoshi Son’s past lifestyle and future prospects, delve into its essence, and make “Son’s Square Law” a life guide or tool that many people can fully utilize.”
“It should not be forgotten to copy the “twenty-five-letter dial” and always keep it on the desk or slip it into an inner pocket, and for women, carry it in a handbag. It would also be good to set it as the standby screen on your mobile phone or as wallpaper on your smartphone.”
“And when faced with important judgments or decisions in various situations in life, take a breath and calm down, then check this “twenty-five letters” one by one. In doing so, you will surely be able to find the “correct answer.””
“The “Fifty-Year Life Plan” established at nineteen”
“Developing the “Rule of Square of Son” in his mid-twenties”
“The shock received on a short-term study abroad in America”
“No jewel glows without being polished”
“The previous version arrangement is easier to explain Masayoshi Son’s footsteps”
““I will show you that I will definitely become No. 1 in Japan in that world””
“Don’t engage in businesses that react emotionally to rain or shine”
“Never target “niches = gaps””
“Use “nine conditions” to sift and narrow down new businesses”
“Gaining one hundred million yen with a “patent” during student days”
“From the start of the founding, declaring “We’ll eventually do trillion, two trillion businesses””