Hidenori Itagaki

"Law—Create a “system that can consistently win.” Regarding the final “law,” “The Art of War” by Sun Tzu refers to it as “legislation.” Legislation is said to involve “organization, regulation of signals, the responsibilities of generals and military officers, the management situation of provisions and ammunition, and whether these systems are enforced strictly.” Following this, Masayoshi Son considers “law” to be “creating systems, mechanisms, and rules.”"

"Masayoshi Son has an image of challenging things without fearing risks. It’s interesting that he says, “In truth, I’m extremely cautious.”"

"Especially in relation to “The Art of War,” he felt a connection, wondering if Sun Wu might be related to his ancestors and read it with familiarity. Gradually, he became convinced that they were indeed his ancestors. Ultimately, he devised the “Law of Sun Squared,” playing on his family name Sun and the name in “The Art of War.”"

"These 25 characters are a combination of words from ‘The Art of War’ and my own creation. Every time I embarked on a new venture, and every time the business faced a new phase or turning point, I would envisage these 25 characters in my mind, repeatedly question myself, and determine the path and nature of the business.”"

"Masayoshi Son devised “Son’s Square Law” when he was around twenty-six or twenty-seven years old."

"Developing the “Rule of Square of Son” in his mid-twenties"

"Tactic—Think through strategy to the point of exhaustion Next is “Tactic,” which means “strategy” to realize the vision. The “Tactic” in strategy means to “abbreviate.” Once all the information is gathered, it needs to be analyzed, and unnecessary parts, noise, or trifles must be thoroughly removed to discover the thickest core and the “essential part” within it, which forms the strategy. Masayoshi Son strongly emphasizes this"

"I considered this a good test and learned from ‘The Art of War,’ and one conclusion I arrived at is the business law that I named the ‘Law of Sun Squared,’ combining the ‘Sun’ from Sun Tzu with my own surname."

"Masayoshi Son provides a practical definition unique to business managers in regard to this character, referring to it as “risk management.” Among these, Son emphasizes that “cash flow management = fund management” is the most important. This speaks to how Masayoshi Son has struggled with and dedicated himself to fund management. For those aspiring to be entrepreneurs, the greatest concern is funding. You cannot start a business for free. You need capital for any kind of business. Expenses actually start accumulating from the moment you decide to start a business. Costs arise from the preparation stages necessary to realize a business plan or project. It is important to keep this firmly in mind."

"In today’s rapidly growing “emerging countries of Asia,” SoftBank, with its main base in Asia, has the “advantages of the land,” Son asserts confidently."

"Fight—Achieve things by fighting yourself The last “Fight” in this section means “Once you make a move in the game, fight thoroughly.” Masayoshi Son argues fervently, “No matter how noble your theories or excellent your strategies may be, achieving results is only possible by fighting.”"

"Automatically Generate Inventions” Among these three patterns, the third “combination method” is most suited to systemization. If systematized, ideas for inventions will emerge rapidly. Thus, Masayoshi Son wrote the names of various things on English vocabulary flashcards. For example, writing names of various things randomly like “orange,” “nail,” “memory.” He randomly picked three out of about three hundred cards, combining them into new product ideas. For example, “apple,” “speech synthesizer,” and “watch.” A person with ordinary common sense would not concoct such combinations. However, upon careful consideration, new ideas emerge from seemingly meaningless combinations. For instance, creating a clock that, in the shape of an “apple,” with a “speech synthesizer,” crowing like a rooster to “create a relaxing countryside morning scene.” If this combination is unprecedented, it qualifies as an invention."

"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"

"This is because ‘The Art of War’ is not a theoretical discourse, but rather considers war as a business in a very calm and rational manner, reflecting the fundamental way of thinking."

"There was a period when I read books related to ‘The Art of War’ voraciously. It was during the three and a half years from 1983 when I, having founded SoftBank in 1981 and as the business began to take off, was repeatedly admitted to and discharged from the hospital due to chronic hepatitis."

"Nobunaga aspired to end the Sengoku period with his mission of ‘Unifying the realm.’ He enjoyed traditional Japanese music and performed the play ‘Atsumori,’ which reflected his view on life and death. Life is seemingly long but really short; one ages before realizing it. It is truly like a dream and an illusion."

"Now, what kind of ‘long-term strategy plan’ did Nobunaga devise? Although it diverts a little from the story of Masayoshi Son, let’s briefly touch on it here.”"

"Masayoshi Son notes that there have been three major revolutions in human history over the past 200,000 years: the Agricultural Revolution, the Industrial Revolution, and the Information Revolution. Among these, the greatest is the “Information Revolution.” He fervently speaks of how fortunate they are for being born into the “Internet Information Big Bang” and emphasizes the need to take advantage of this heavenly timing to soar."

"In summary, it’s essential to take risks, but “do not take risks over thirty percent.” Masayoshi Son explains this uniquely by saying, “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.”"

"Seven—Discern a seventy percent chance of winning The fourth “Seven” is a number Masayoshi Son regards as a “magic number.”"

"“Rigidity” signifies that “a true leader sometimes needs to become a demon.” This also fits Nobunaga perfectly."

"Balancing and aiming for a higher dimension while expanding one’s capabilities is a challenging task. This is indeed an eternal theme. How has Masayoshi Son tackled this? ◆Impose on oneself “to make one invention per day for a year”"

"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.”"

"Courage—Have Both the Courage to Fight and to Retreat The next “courage” means, needless to say, “courage.” Speaking of courage, what comes first to mind is the courage to fight bravely. It is the courage to confront something and move forward. However, Masayoshi Son points out the opposite, which is the “courage to retreat.” It is the courage to retreat quickly from dangerous situations, rather than being reckless."

"“A vague hope isn’t called a vision. It’s about deciding on ‘must-achieve goals = commitments’ and ‘clear ultimate deadlines = deadlines,’ imagining them thoroughly. ‘Commitment’ is not a mere ‘effort goal’ that no one blames you for not achieving. It’s something you must realize, risking your life. Masayoshi Son also says,"

"First, regarding “One” [a strong commitment to being number one. If you do something, you must absolutely become number one. Second place is the same as defeat], how did Son practice this?"

"◆ “Group Strategy” to Disperse Risk The last character in the third paragraph is “group” [group strategy: forming alliances with exceptional individuals or companies with the same aspirations, practicing “risk hedge”]. This means not excelling in a single product or business line, but placing importance on possessing business lines or organizations as multiple groups, a strategy known as “group strategy.” In the aforementioned article from “President” (January 1997 issue), Son speaks as follows. “Of course, the efficiency of a single-product management is high, and it’s undoubtedly the quickest way to raise ROI (Return on Investment). When starting up a business in a position of weakness, it’s better to focus on one business line and concentrate your forces."

"Moreover, having this balance at a low level is meaningless. In the words of Masayoshi Son, “No matter what you do, you should be able to engage in discussions at the highest level across various fields with the respective specialists.” This is the kind of ability you must have. Reaching this level is no ordinary feat. That’s why “You must study hard,” the grandson urges."

"“There was always a latent desire to do something on my own, to spend an interesting life. During my student days in America, I happened to see an enlarged photo of a computer chip in a science magazine."

"Sun Tzu is read as Sun Tzu in English just as in Chinese, and introduction books in English translations are published, with many friends having already read them. Literally, it is a book of military strategy and practice that transcends time and geography."

"When challenging a new business or facing difficulties, Son recalls these “25 characters,” repeatedly asking himself if they match with each success factor, and making his decisions."

"The first pattern Masayoshi Son thought about was: “What process does invention follow?” After trial and error, he concluded that there are only three patterns for invention. The first pattern is the “problem-solving method.”"

"Way—First establish your resolve The first section, “Way, Heaven, Earth, Law,” are words from the “The First Calculations” chapter of “The Art of War” by Sun Tzu. The first “Way” in “The Art of War” by Sun Tzu refers to “the way of correct governance, where the will of the people and the ruler are united.” In contrast, the definition in “Son’s Twofold Principle” is simply “philosophy, resolve.”"

"First, establish a “long-term strategic plan” for life. ◆ A “genius manager” is not made in a day. “Start a company in your twenties and make your mark. Save at least 100 billion yen as capital in your thirties. Take a big gamble in your forties. Complete the business in your fifties. Pass the business on to the next generation in your sixties.” Masayoshi Son drafted this “50-year life plan” at the age of nineteen while studying in America. Since then, despite twists and turns, Son has lived a life almost according to this plan. So, what kind of life did Son lead before drafting this life plan? Masayoshi Son was born on August 11, 1957, in Tosu City, Saga Prefecture."

"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."

"Ninomiya Sontoku was born in the late Edo period in the Sagami province (now Kanagawa Prefecture). His name was Kinjiro. He was recognized as an agrarian policy expert with abundant agricultural knowledge and unique political prowess. He is known for studying diligently by reading books while carrying firewood on his back in his boyhood."

"Ideally, we should proceed following the order of the latest version of the dial “Heaven-Earth-General-Law → Top-Emotion-Strategy-Battle → Elite-Offense-Defense-Troop → Wisdom-Trust-Benevolence-Courage-Strictness → Wind-Forest-Fire-Mountain-Sea.” However, in this book, it will be discussed in the order that Son initially created and became accustomed to using as his management guideline for many years: “Elite-Offense-Defense-Troop → Heaven-Earth-General-Law → Wisdom-Trust-Benevolence-Courage-Strictness → Top-Emotion-Strategy-Battle → Wind-Forest-Fire-Mountain-Sea.”"

"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."

"Learning from “Momotaro” how to establish <Aspiration, Vision, Strategy> “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>.” This is the words of Masayoshi Son in response to my question, “What is absolutely necessary for a manager?” He continued to explain <aspiration, vision, strategy> with the following analogy. “The first to be mentioned is <aspiration>. What will our group gather to accomplish? Why do we do it, and how does it serve people? Having a high aspiration. This is the most important thing."

"Narrowing new businesses through “Nine Conditions” 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."

"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."

"Create “a hen that lays golden eggs” instead of just “golden eggs” In the first one or two months after starting “one invention a day,” ideas kept coming. But then, he ran out of topics. So, Masayoshi Son changed his approach. He thought of inventing the “thought system of invention,” that is, “a system that creates inventions.” If he could establish this, it would be the greatest invention itself. The idea was to create a hen that lays golden eggs rather than just the golden eggs."

"Since it is training, rules are necessary. Masayoshi Son limited the time for invention to within five minutes a day, setting an alarm clock to go off after five minutes, marking the end of time. If no idea came up in that time, it meant that day was a failure."

"First, he bought ordinary iron clogs from a sports store. Since they were noisy, he borrowed his brother’s old basketball shoes and traced their shape on a metal plate with chalk. Then he took it to a local ironworks where they cut it with a burner, placed it inside the shoe as an insole, tied the shoelaces tightly, and tried wearing them. He realized then that one could walk because shoes bend."

"Commander—Gather excellent subordinates The fourth “Commander” literally means “General.” In “The Art of War,” it refers to the abilities a general should possess, such as wisdom, honesty, integrity, courage, and dignity. In “Son’s Twofold Principle,” it emphasizes not only honing one’s abilities but also the importance of acquiring “excellent commanders (i.e., subordinates, staff) with such abilities.” Son explains."

"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"

"Just as he launched “Nihon SoftBank” to handle the wholesale business of packaged software for PCs and the business was starting to get on track, Son was stricken with chronic hepatitis and was forced to repeatedly enter and leave the hospital."

"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."