Historical Events Suggest a Vision of the Future
First Step to Modern Management Hisaya Iwasaki Mitsubishi’s 3rd President
Transforming Mitsubishi into a modern enterprise
In his early days, in 1886, Hisaya Iwasaki had studied at the Wharton School of the University of Pennsylvania in the United States, among great capitalists such as Rockefeller and Carnegie and experienced firsthand the big wave of business that surged in the American continent in the early years of the 20th century.
His exposure to American education had a profound impact on the young Iwasaki’s life and upon his return to Japan built himself a western-style house designed by British architect, Josiah Conder and surrounded it with gardens reminiscent of the American countryside. Now, Metropolis of Tokyo owns the house and gardens, the public may enjoy this splendid representation of American style living.
Transforming Mitsubishi into a leading shipbuilder

In 1895, Nippon Yusen built one of six passenger-cargo vessels (6,000-ton class) for a European line at the Nagasaki Shipyard. Until this time, only British companies had the shipbuilding capabilities to construct this size of commercial ship. Built at a loss for the shipyard, the experience gained from the construction of this vessel set the stage for a growing number of orders for larger vessels, including an order for the 13,000-ton class luxury liner, TENYO MARU, and many subsequent orders for large-scale battle ships.

Creating a modern corporate management system

In 1908, Hisaya Iwasaki introduced into Mitsubishi a management system very much like today’s system of operational divisions. The aim of this change was to give each division responsibilities and cost consciousness in order to further expand the Company’s businesses. MitsubIshi Goshi Kaisha consisted of the divisions of banking, shipbuilding, administration, mining, sales, and real estate, to which direct management authority was then transferred. This move was a decisive and strategic gain for the growing Mitsubishi, increasing both efficiency and profitability as a corporate enterprise. The introduction of the division system was the first step in Mitsubishi’s transformation from a one-man rule company to a truly modern corporate structure, equipped to meet the challenges of a rapidly changing and increasingly international business environment.
Major contributions even in retirement

In 1916, while Japan prospered during the war boom of WWI, Hisaya Iwasaki stepped down as president and entrusted the reigns of leadership to a younger Koyata Iwasaki. At the time Hisaya Iwasaki was 50 years old, and believed in such a robust period of economic growth, he could entrust the business to his successor without worry. He was indifferent to worldly gain, and thereafter did not interfere in the business of Mitsubishi Goshi Kaisha.
Following his retirement, Hisaya Iwasaki became involved in agricultural and cattle raising businesses, and in 1924, established the Toyo Bunko Foundation, which, today, has become one of the world’s leading centers for Asian studies. Currently the facility houses about 950 thousand documents and many artifacts for public viewing.
Hisaya’s House (currently kyu-Iwasaki-tei Teien ‹Garden›)
TENYO MARU. Completed in 1908, 13,402 tons.
George Ernest Morrison and Emblem of Collection
 
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Leads Mitsubishi