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NEWSLETTER

Business Acumen: No Margin, No Mission

June 25, 2012

Established in 1951 in the aftermath of World War II, Japan Airlines came to symbolise Japan's post war recovery with this aspiring mission statement:

We will not only transport people and goods to their respective destinations safely and on time, but will also bring peoples, their cultures and their hearts closer together as our contribution to world peace and prosperity.

Unfortunately on January 20, 2010 Asia's largest airline by revenue sought court protection from creditors to grapple with a debt load of $25 billion, a level well above its cash flow. The airline would go onto to layoff over 14,000 employees, the CEO and board would resign, and the company's stock would be delisted leaving shareholders with nothing.

Employees must exercise their business acumen set and achieve goals in order to accomplish the most important objective for any company: long-term, sustainable profitability to support its mission. Remember: No Margin… No Mission!