In 1961, Konosuke had warned that Japan's rapid economic growth was excessive, and he saw that it was essential to create a strong internal structure capable of surviving the economic crises that might lie ahead. Just as Konosuke had feared, the Japanese economy entered a recession in 1964, following a boom sparked by the Tokyo Olympics which were held that same year. Konosuke advocated the idea of "dam management" just as the Japanese economy was reaching a crucial turning point, in February, 1965, at a seminar in Okayama organized by the Kansai area business community.
Konosuke's dam management offered a way to keep an enterprise on an even keel in times of unexpected changes in business conditions, and included useful techniques for achieving the goal of maintaining steady growth at all times.
A business can maintain steady growth, and protect itself against changes in the external environment, by erecting a dam and reservoir in every part of its management, such as an "equipment dam" and a "capital dam" that provide insurance for stable growth.