It was Edward Deeming who allegedly taught the Japanese about Total Quality Management (TQM) in the aftermath of the Second World War. His legacy was the development of Japan’s manufacturing industries from a global joke based on low cost and poor quality, to a global giant that has become the benchmark for excellence in engineering. However, Japan appears to be losing its way in recent years. The troubles of Toyota seem to epitomise the problem.

If a now deceased Peter Drucker can help to stimulate Japanese management thinking into the right direction that would be good for Japan. However, I fear that Japan’s problems are much deeper than a simple shift in management philosophy can correct. The country is now facing the likes of Korea and China who have learnt from Japan’s experience but applied their own national characteristics. The Japanese population is aging and its political system is moribund. Too much inertia exists to stymie innovation, particularly in the services and creative industries sectors.