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[Column] ➀ The company is a human zoo.

[Column] ➀ The company is a human zoo.

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■ A company is a human zoo, designed to collapse. The characteristics of various organizations, such as sports and hobbies, are fundamentally similar in that they gather people with similar values. For example, if friends from a recreational baseball team discuss going camping, the conversation quickly comes together. However, a corporate organization is characterized by the gathering of people with differing values, backgrounds, ages, and genders. Therefore, unless there is an intention to unify the organization, it will not function as a cohesive entity. In other words, if left unattended, a company is inevitably designed to collapse. ■ A company will not run smoothly if nothing is done. People with different backgrounds and differing values regarding likes and dislikes happen to live in the same area and come together to form an organization under conditions where they can compromise on treatment. This is the case for many small and medium-sized enterprises. While a group of animals in a zoo lives based on natural coexistence, when humans become like a zoo, they forget their own productivity and complain about low evaluations, or say they don't get along with certain individuals, or act freely despite company policies being presented. Many companies are in a state of neglect. In other words, it is more effective to consider company management methods based on the premise that a company will not run smoothly if nothing is done.

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[Column] ② Companies are designed to fail.

[Column] ② Companies are designed to fail.

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How many years has your company been established? According to the Small and Medium Enterprise White Paper, the survival rates of companies over ten years are as follows: the survival rate after one year (newborn) is about 72%. The survival rate after three years (kindergarten) is about 50%. The survival rate after five years (preschool) is about 40%. The survival rate after ten years (fourth grade) is about 26%. In other words, the probability of surviving for ten years is only 30%, which highlights the difficulty of survival compared to human survival rates. Looking at the trend of bankruptcies at economic turning points: - COVID-19 (2020): 7,773 cases. - Normal period (2019): 8,631 cases. - Great Earthquake (2011): 12,707 cases. - Lehman Brothers (2009): 13,306 cases. - Bubble (1987): 12,655 cases. The factors leading to bankruptcy vary with environmental changes, but bankruptcies occur in every era, regardless of whether the economy is good or bad.

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[Column] Principles for Unifying Organizational Groups ➇

[Column] Principles for Unifying Organizational Groups ➇

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Combat is making sure that predetermined tasks are carried out as decided. As a practical measure for performance improvement, specific tasks to be accomplished over the course of a month are determined. Accordingly, everyone carries out their roles based on this division of responsibilities, and executing the decisions as agreed upon is a crucial function of combat. Combat is about practical ability. To achieve goals, it involves creating mechanisms that compel daily work to be done and implementing methods to ensure tasks are completed. Ensuring that predetermined content is executed as agreed upon is what combat entails, along with the practical implementation of daily operations and specific strategies based on role division. It is the effort of all employees, including team leaders, to put this into practice. Companies with good performance have a high awareness of adhering to agreements. Because of this high awareness, less effort is needed to enforce compliance, allowing focus on other areas, which in turn makes it easier to improve performance. Organizations are driven by people. To make it easier for people to drive the organization, it is essential to standardize what needs to be done. Without establishing patterns for tasks, habits cannot be formed. A characteristic of teams without combat is that they may be called to action, but do not respond. Ultimately, management is a contest of practical execution. Teams that cannot perform predetermined tasks as agreed upon will not receive rewards for their performance.

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[Column] Principles for Unifying Organizational Groups 7

[Column] Principles for Unifying Organizational Groups 7

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Tactics are strategies for moving people and ensuring they are thoroughly understood and implemented. Tactics involve ways to move people, with the key points being management and HOW TO. The essence of management is to ensure that what has been decided is carried out as planned. HOW TO refers to know-how and the standardization of work. Organizations are driven by people. To make it easier for people to drive the organization, it is essential to patternize what needs to be done. Without establishing patterns for what needs to be done, it becomes difficult to form habits. A typical management measure for patternizing what needs to be done is the management plan and performance review. Once goals are set, we consider how to implement them and create a plan. At the stage of thoroughly communicating the specific route, procedures, arrangements, and methods toward the goal, various issues arise, such as: - Not clearly understanding how to do it - Having never done it before, etc. Thorough communication includes properly teaching how to do things. The problem with operations in small and medium-sized enterprises is standardization. Simply put, it is about not creating a divide between those who can do things and those who cannot. Companies or departments that do not achieve results tend to only create plans and face challenges without training, leading to a higher probability of failure. Taking this into account, we clarify roles and responsibilities in the 5W2H format: who will do what, by when, and how.

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[Column] Why is the speed of personal growth slower than the speed of company growth?

[Column] Why is the speed of personal growth slower than the speed of company growth?

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Small and medium-sized enterprises (SMEs) are under pressure and must take immediate action on human resource development as they grow and experience internal distortions. The growth of SMEs is proportional to the speed of growth of their management, but not to the speed of growth of their employees. The traditional development pattern involves assigning department heads and, if they fail, providing education, but one must realize that this approach is already too late at that point. When aiming for company sizes of 500 million to 1 billion, 1 billion to 3 billion, 3 billion to 5 billion, and 5 billion to 10 billion yen, it is necessary to change the gears of organizational management. In terms of scaling a business, just as elementary school students have food and clothing suited to their lifestyle and physique, and middle school students have food and clothing suited to theirs, the same applies to companies. No matter how similar the food is, an elementary school student does not need the same quantity as a growing middle school student. Similarly, if a company does not implement measures appropriate to its scale, it cannot operate healthily, and cracks will begin to appear everywhere. At this stage, where significant changes in steering methods are required, gaps within the company frequently occur.

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[Column] Why are the organizations of small and medium-sized enterprises fragmented?

[Column] Why are the organizations of small and medium-sized enterprises fragmented?

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This is because there is no recognition that "companies are living entities." Being disjointed means not being unified. The basic flow in organizational management is (1) purpose (2) goals (3) policies (4) organization (5) plans (6) roles (7) schedules (8) implementation (9) results (10) distribution. When replaced with management measures, this becomes management philosophy, vision, management policy, and management. Recently, small and medium-sized enterprises have been creating philosophies, drafting management plans, revising wage systems, and introducing management systems, yet they still remain disjointed. This is because each management measure is constructed on a whim, resulting in a patchwork state full of mismatches. For example, if there is no correlation between the content of the plan and the content of the personnel evaluation, even if time and effort are invested, it will ultimately fail. "Rules and standards mean crossing when the light is green and stopping when it is red," and it is because these are followed that the traffic society functions. Small and medium-sized enterprises become disjointed because they either do not have established rules and standards for operating the company, or if they do exist, only a few people know them, or even if they are known, they are not followed.

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[Column] Aligning Work Quality with Social Changes Across All Employees

[Column] Aligning Work Quality with Social Changes Across All Employees

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The economic environment surrounding us has become too advanced, complex, and specialized, leading to a time when past experiences are no longer useful. In other words, we are undergoing significant changes that require us to improve the quality of our work in order to survive. This need to enhance work quality applies to all members. To achieve this, we must change the nature of our work. In addition to uniting the team, team leaders are required to take on new strategic initiatives such as product development, technology development, and sales area/channel development to bring work and performance to the team. Sub-leaders need to manage the team as representatives of the team leader. This is necessary because even if the leader engages in strategic actions, the team needs the functionality to operate effectively. If we do not cultivate individuals to take on these roles, leaders will not be able to execute strategic actions. Each member is expected to enhance their practical processing abilities. Furthermore, it is essential for all employees to take responsibility for their roles and demonstrate leadership, regardless of their position relative to others, in order to implement goals and objectives. There is a demand for the overall improvement of all employees, and it is required that the way the team operates is a collective effort from all employees.

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[Column] Characteristics of Companies Where Long-Standing Executives Are Likely to Emerge

[Column] Characteristics of Companies Where Long-Standing Executives Are Likely to Emerge

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■A rapidly growing company The growth of a company is proportional to the growth speed of its management, but not to the growth speed of its employees. As the scale of the company grows, it is necessary to change the gears of organizational management. At that time, it is often the case that executives who have worked hard together since the founding are unable to adapt to changes in management methods such as open management, and signs of power harassment from their positions begin to emerge. ■A president who is too sentimental The management is aware that the growth of the founding executives is slow due to the company's rapid growth. A sentimental manager is patient and perseveres, but is concerned about the perspectives of mid-level and junior employees, leading to daily worries. During the growth phase of the company, where significant changes in steering methods are required for various reasons, gap phenomena frequently occur within the company. ■A company where mid-level and junior employees are growing in relation to the founding members The gap in work capabilities between the founding members and mid-level and junior employees has diminished. If the founding members lack management skills, the differences in work will disappear, making it difficult for them to maintain their positions of authority and leading to a loss of status. *For more detailed content of the column, please refer to the related link. For further inquiries, feel free to contact us.*

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[Column] Conveying the Spirit of Entrepreneurship 2: Storytellers

[Column] Conveying the Spirit of Entrepreneurship 2: Storytellers

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A lasting organization has the presence of storytellers. A representative example is the "company history." The company history is about its own past, but its purposes are twofold: 1. To leave behind examples of management decisions for those who follow, and 2. To educate and help understand how we arrived at today through the circumstances we have gone through. Through the company history, one learns the important values of the company. To put it in familiar terms, it is like a fairy tale. Every Japanese person knows "Kintaro of Ashigara Mountain." This is because it has been passed down through generations. Important matters are conveyed within the same ethnicity and inherited by the next generation. A crucial element of the mindset of like-minded individuals is identity. Growing companies have storytellers. These storytellers do not just say, "Do this" or "Do that." They help people understand why this is necessary and why that is important. It is because they can convey the reasons that people are motivated to act. Identity is the treasure box of the company that solves the "why." The storytellers of the company are you, the executives and leaders. *For more details on the column, please refer to the related links. For further inquiries, feel free to contact us.*

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[Column] 4-4 The president of a small to medium-sized enterprise is a person who seeks speed and is considerate.

[Column] 4-4 The president of a small to medium-sized enterprise is a person who seeks speed and is considerate.

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■Managers Seek Speed They always have a sense of crisis. They feel uneasy if they are not doing something, and their thought process constantly involves identifying current issues, grappling with them, and thinking of solutions. This is why managers are often impatient and demand speed. If an employee says they will complete something in a week, they will insist it be done in three days, and they will immediately ask for updates the next day. Managers think about the company 365 days a year, 24 hours a day, and without this level of commitment, decisions do not progress. ■Managers Are Considerate People Managers are considerate individuals. If the total amount of numbers is even slightly off, they become furious; if a calendar or picture frame is crooked, they cannot rest until it is fixed; and when dining out, they pay attention to every detail of how to eat, drink, and behave. This is a result of developing correct habits. It is not just about being a good employee, but about cultivating a way of being as a sensible person. This is why they can be quite particular. This aspect also reflects the strength of a manager's responsibility. Additionally, if an employee's family has a celebration, they will quietly offer congratulations, and if there is a misfortune, they will always encourage the employee. They are considerate to ensure that employees can work comfortably.

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[Column] ➇-⓶ Small Business Illness: Inability to Perform Basic Operations

[Column] ➇-⓶ Small Business Illness: Inability to Perform Basic Operations

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Another problem often seen in many companies is that they are not able to perform "basic actions." When you wake up in the morning, you should greet others with "Good morning," and when things are messy, you should clean up. These are the basic actions that are expected of an organizational member. If you cannot perform these basic actions naturally, like breathing in and out, you cannot become a member of the organization. What is particularly lacking is the ability to report, communicate, consult, and give instructions or orders. The inability to give instructions or orders is serious; not being able to perform the basic actions that move people leads to confusion in the workplace. Additionally, they are not able to adhere to established rules. Not following them has become a habit in itself. If there is no habit of properly doing what has been decided, any attempt to do something new will be in vain.

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[Column] 7 Principles for Unifying Organizational Groups 2

[Column] 7 Principles for Unifying Organizational Groups 2

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The management philosophy is the source that unifies a disparate group. Even if a family does not have a family motto, the same DNA flows through them, making it easier for the family to be cohesive. However, a company lacks this DNA, and it must be deliberately created afterward. This DNA defines the way of thinking and behavior required to work in the same company. The management philosophy acts as the roots of a tree; if they are not solid, the tree will not grow. Even if the tree has a large trunk and leaves, it will fall if the roots begin to rot. In other words, even if the management philosophy is admirable, if the actual management is done haphazardly, the visible results will not improve. It is essential to have a correct management philosophy, along with a concrete vision, policies, product strategies, tactics, and actions that are adapted to the environment. The management philosophy is the purpose of the company's existence and represents the goals and vision we aim for. To practice this goal in our daily lives, we express our everyday way of thinking and behavior in specific terms, which become the standards for action. Each individual, while engaging in their respective work, must maintain a sense of awareness and improvement, questioning whether what they are doing is truly right, and must practice in accordance with the way of thinking, attitude, and behavior outlined in the standards for action.

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[Column] Why can't things that are decided be done as decided?

[Column] Why can't things that are decided be done as decided?

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Decisions made within a company are the first step in motivating people. To achieve this, it is essential to define the specifics clearly; otherwise, people will be confused. Specific decisions should be expressed through unique names, numerical values, and goals. Furthermore, it is necessary to share the understanding of these decisions. In other words, everyone in the department must have a common understanding of what decisions need to be made this month. To ensure these decisions are implemented, it is important to prevent them from being left unaddressed and to conduct detailed checks. There are two methods to achieve this. One is to systematize the process and create individuals responsible for implementation. However, systematization often lacks a clear methodology, and the people responsible are merely told what to do by the president. Frequently, the on-site managers do not lead by example, and there is a lack of management work to enforce compliance, with no reprimands for employees who do not adhere to the decisions. As a result, a culture develops in the company where it is easier not to do anything, as there are no consequences for inaction. Conversely, in companies that adhere to their decisions, individuals are reminded by their peers when they do not comply, fostering a culture of adherence. This allows management to focus on the next steps, leading to the growth of the company.

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[Column] Development of New Businesses (1) Points of Success and Failure

[Column] Development of New Businesses (1) Points of Success and Failure

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An era that demands strategy. One perspective on this is new business ventures. ■Common points of failure in new business ventures: (1) Operating in a completely unknown field, lacking knowledge and know-how. (2) Even if funds and materials are secured, there are no suitable personnel. (3) Insufficient understanding of the market and demand. (4) High risk and high return with significant investment amounts. (5) Unclear investment amount estimates. (6) Misjudgment of the timing for withdrawal. (7) Expansion into different industries based on the owner's president's unilateral decisions and personal interests. ■Success points from successful examples: (1) Related industries or business types to the current business. (2) Transitioning upstream (manufacturing) or downstream (retail). (3) Growth areas, networks, and timing that align with current trends. (4) Utilizing systems that allow for the incorporation of know-how (e.g., franchising). (5) Leveraging assets such as land, buildings, and employees from existing businesses. Relying solely on existing businesses that target the same products to the same customers makes it increasingly difficult to achieve appropriate profits. Therefore, one strategic perspective is new business ventures. When new businesses succeed, they can generate significant benefits for the company.

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[Column] Exploring the Possibilities of Expansion Centered on New Business (3)

[Column] Exploring the Possibilities of Expansion Centered on New Business (3)

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The method of vertical expansion is fundamentally either upstream or downstream. The criteria for upstream and downstream refer to moving towards manufacturing if transitioning from the current business model, or towards retail if transitioning from the current business model. Additionally, approaching the final end user is also a perspective to consider. Upstream expansion involves entering businesses that have manufacturing or construction functions. It does not necessarily require capital investment by the company itself; instead, it can involve outsourcing or subcontracting to have manufacturing or construction capabilities while executing projects based on the company's own plans. A representative company is Uniqlo. A common example of downstream expansion is when a lumber company undertakes new residential construction or renovations and transforms into a housing company (Tama Home). Downstream expansion is a method of entering fields that are closer to consumers. Next, horizontal expansion involves entering peripheral or niche fields. For example, a housing company or construction firm may enter the remodeling sector in a separate division, or a building materials sales company may engage in termite extermination or house cleaning, all of which are expansions into peripheral fields related to housing. The key points of horizontal expansion are entering fields where a gross profit margin can be obtained (compared to the current core business) and being able to leverage existing personnel from traditional businesses. It involves entering niche areas where there are few or no existing competitors and which have future potential.

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