Nobuyuki Idei, the former Sony Corp. chairman who founded consulting firm Quantum Leaps Corp., said Monday that Japanese firms need to rejuvenate their management and stop clinging to business practices from two decades ago to become more competitive.

"It's said a successful person often experiences depression after having success, a state known as creative depression," Idei, 71, said.

Japanese companies need to "alter generations" by bringing in new managers with fresh ideas, Idei said. "Companies aren't spending money. People don't take taxis, companies don't sponsor forums and banks think buying Japanese government bonds is the best way for them to survive," he said. "We may be following a road that leads to Japan's failure."