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Cash flow management involves looking at how much money is coming in and how much is going out over a certain period. The income statement shows how much revenue a company has generated and how much profit it has made during the period, but a company can still go bankrupt even if it is in the black. This may seem like an inexplicable phenomenon, but it is a fact. The reason this happens is that "capital" in a company is akin to "blood" in the human body; if the flow is cut off, no matter how healthy the body is, life cannot be sustained. Cash flow management is like boxing. The income statement is like a baseball pennant race; there may be months when the company is in the red, but as long as it can turn a profit by the end of the fiscal period, it is fine. However, cash flow management is like a boxing match; even if you know that 100 million yen will come in tomorrow, if you cannot prepare the necessary funds today and end up issuing a bounced check, the company will be knocked out. In other words, while profit is certainly necessary for a company to survive, cash flow management is also extremely important. *For more details on the column, please refer to the related links. For further inquiries, feel free to contact us.*

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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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In the founding period of a company, there are no customers, relationships, facilities, goodwill, or employees as we know them today. In other words, starting from a situation filled with "nothing"—no people, goods, money, achievements, or trust—is a commonality of the founding period throughout history and across cultures. The only thing that one could possess during this time was a "determined rhythm" of wanting to please customers and working hard with a single-minded focus. This determination transformed into enthusiasm and sincerity, allowing the company to overcome various challenges and grow into its current form. Furthermore, companies that inherit the baton from their predecessors cherish and pass down the family teachings, business principles, and lessons that have been handed down through generations. The spirit of entrepreneurship remains correct over time, and when a company forgets this spirit, it loses its direction, leading to various management issues. The struggles and stories from the founding period are often unknown to current employees, making it very important to understand the origins that shaped the present state and content of the company. Knowing this history helps in understanding the values, corporate philosophy, and life perspectives of the management, which contributes to the unification of values as corporate and professional individuals. *For more detailed content of the column, please refer to the related links. For further inquiries, feel free to contact us.*

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Through 30 years of management consulting activities, I have discovered several absolute laws necessary for company management, one of which is that companies where the president spends a lot of one-on-one time with employees will definitely grow. One-on-one interaction with employees means personal interviews, discussions about sales and field trends, and educational initiatives from the president. Recently, I had the opportunity to attend a management plan presentation for a certain company. When they first started holding these presentations 16 years ago, the company had 60 employees, and it has now grown to 250 employees. This time, the presentation was held at the same venue as 16 years ago, returning to the original point. Sixteen years ago, the president was the sole focus, managing like a king and a pawn. In this presentation, there were several main figures (executives) who confidently presented, showcasing the growth of the organization. Thanks to the efforts of the president, executives, and employees, the company has significantly grown. The president of this company also values interaction with employees, creating time for it, and holds study sessions for employees regardless of weekends. *For more details on the column, please refer to the related links. Feel free to contact us for more information.*

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The income statement is based on annual figures, while the balance sheet represents the flow of funds at a specific point in time. Therefore, when selecting the fiscal month, the weight given to the balance sheet is higher than that of the income statement. What must be particularly considered is the balance between total current assets and total current liabilities, with the ideal situation being when total current assets exceed total current liabilities. However, the contents of total current assets are also important. The worst scenario is when 2. inventory reaches its highest amount throughout the year, while the best scenario is when 5. cash and cash equivalents are at their highest when preparing the financial statements. Since the balance sheet reflects the flow of funds at a specific point in time within the 12 months of a year, it should represent the best financial state for the company. *For detailed content of the column, please refer to the related links. For more information, feel free to contact us.*

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A year consists of 12 months, and it is a battle of 12 rounds. There are various ways to fight, but in principle, "a first-half dam-type management is preferable." First-half dam-type management means securing 60-70% of the annual required operating profit during the first half of the year, from April to September, in the case of a March fiscal year-end. From a different perspective, ideally, a year of 12 rounds would result in 12 wins and 0 losses, but the reality is often 10 wins and 2 losses, or 9 wins and 3 losses. If we consider a scenario of 9 wins and 3 losses, it is important to select the fiscal month in such a way that 5-6 of those wins occur in the first half of the year. The reason why the first half is better is that it allows for a buffer to search for products during months when a deficit is expected in the second half, and it also provides leeway for planning for the next fiscal year. Companies that rely on a second-half push often exhaust their resources before reaching the fiscal month, resulting in delayed strategies for the next period. *For detailed content of the column, please refer to the related links. For more information, feel free to contact us.

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If it is a corporate entity, there is an obligation to prepare financial statements every year, which must be submitted to the relevant tax office and national tax authorities, and the necessary taxes must be paid. However, the significance of financial statements for many companies is often seen as documents to be submitted to financial institutions, isn't it? Financial institutions aim to verify and confirm the contents of loan applications with specific figures. Loan officers and relationship managers compare the information gathered with documents such as financial statements. In other words, they analyze the financial condition, business performance, and repayment capacity using three periods of financial statements to determine credit risk ratings and debtor classifications. Do you know which month of the year represents the best financial condition for your company? While the products of your company are the main appeal in transactions with customers, the most effective tool for promoting your company in dealings with existing and new financial institutions is the financial statement. Most companies determine their fiscal month based on the designation of their tax accountant, and few have chosen it according to their strategic development. *For more details on the column, please refer to the related link. For further inquiries, feel free to contact us.

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What are the criteria for value judgments that the top executives and management should align on? 1. Management philosophy and the company's value of existence 2. Understanding and acceptance of the company-wide vision 3. Management plans and management goals 4. Basic policy for human resource development 5. Basic policy for product development 6. Basic policy for building relationships with customers 7. Basic policy regarding internal systems 8. Fundamental thinking that serves as the basis for judgment 9. Fundamental thinking regarding personnel and talent evaluation 10. Expectations (values) for executives and management The top executives must communicate these ten items of values and judgment criteria as the leader's intentions to the employees. In a parent-child relationship, children become independent by learning the value judgment criteria, ways of acting, and behaviors from their parents as adults. It is the same in this context. The highest decision-maker in a company is the manager. By having many employees understand the manager's value judgment criteria, employees become capable of making their own judgments. Consequently, the dependency on the president decreases. Executives play a crucial role in this process. *For more detailed content of the column, please refer to the related links. For further inquiries, feel free to contact us.*

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Everyone knows themselves well. There are no employees who cannot answer questions about their birth date, blood type, zodiac sign, or the origin of their name. However, when asked about the company's founding date, number of employees, annual sales, history, main bank, or the selling points of its products, few employees can answer adequately. It's not that "the grass is greener on the other side," but employees know less about their own company than the president imagines. If you think this is hard to believe, it would be beneficial to create a test from your company's brochures or website and conduct it; you will likely be astonished by the reality. When you think about it calmly, it's remarkable that small and medium-sized enterprises attempt to compete without knowing their own company’s overview or products. They waste time without any sense of problem awareness, which hinders growth. Such a group can be referred to as a rabble. In other words, they cannot be recognized as members of a fighting group. *For more details on the column, please refer to the related links. Feel free to contact us for more information.

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For example, if sales and operating profit decrease from the previous year, it results in a state of reduced revenue and profit. The response to this situation follows the steps below: 1. Companies in a state of reduced revenue and profit should implement cash-centered measures to stop the bleeding and provide a transfusion to escape that state. 2. This will lead to a state of reduced revenue but increased profit. However, this management condition is akin to a boxer maintaining a weight-loss regimen for 365 days, which is not sustainable. 3. Eventually, the desire for food will become overwhelming, leading to the development of a sales expansion strategy. 4. Next, the company will enter a state of increased revenue but decreased profit, and ultimately transition to a state of increased revenue and profit. This process follows the trajectory of management improvement theory. In medicine, pathology is based on numerous cases, and treatment theories are constructed from that foundation. New discoveries and technologies are then developed on top of that. Similarly, companies can experience ailments, and there are fundamental ways to address them. This is the basic model for how companies fight and the foundation for their continued prosperity. By solidifying this foundation, companies can exert their strength, just like in the world of sports. *For more detailed information, please refer to the related links. Feel free to contact us for further inquiries.*

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There are commonalities among businesses and companies that have thrived for a long time. That is, the name of the store or company is more recognized than the name of the owner. Of course, in the early days of establishment, it is the founder's strong personality that paves the way and creates the foundation. As this foundation is passed down through generations, the basic form of the store or company is established, solidified, refined, and ultimately, a "unique way of fighting for the company" is developed. So, what is necessary for companies with a short history, meaning those currently managed by their founders or second-generation companies? First, it is essential to create the basic form of the company's strategy. This basic form is the theory = principles and rules for the company to continue thriving. It is important to bring this to a level where one knows it, understands it, and can execute it. To illustrate the theory with a baseball example: in the bottom of the ninth inning, the score is 2 to 1 in favor of the opposing team. With no outs and a runner on first base, the theory dictates that the batter should lay down a bunt to advance the runner to second base. Winning teams can execute this reliably, which is why they win. *For more details on the column, please refer to the related links. For further inquiries, feel free to contact us.*

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What kinds of bases exist within a company? ■Management philosophy: The base that unifies the organization ■Employees capable of practicing reporting, communication, and consultation: The base of human resources ■Basic operations: The base for executing business (80% of work is routine) ■Core products: The base for product, sales, gross profit, and funding composition ■Main customers (A-rank customers): The base for customer, sales, and gross profit composition ■Busy periods, monthly: The base for calculating wins and losses over 12 rounds Looking at a company's product composition, companies with core products are strong. If core products account for 700 million out of 1 billion in sales, the base rate is 70%, and it is sufficient to create products to fill the remaining 30%. However, a company with a base rate of 50% must also create products to fill the remaining 50%, and to overcome this, it must engage in "time management" to develop products ahead of time. Time management means that the period for creating products must be equivalent to 1 month, 2 months, or 3 months ahead for the company, and if it is 3 months ahead, it must work as if it has 90 days of work in one month. *For detailed content of the column, please refer to the related links. For more information, feel free to contact us.*

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Stability allows for the creation of battles. The term "base" is a commonly heard expression. The representative indicators that reflect the state of management include: ■ Stability - Represents the stability and risk level of management ■ Profitability - Represents the structure of sales and expenses to secure profits ■ Productivity - Represents the quantity and quality of sales and gross profit generated by employees ■ Turnover - Represents the turnover and utilization of goods and assets, which are one source of profit ■ Growth - Represents the degree of growth in scale compared to the past, present, and future All management indicators are based on balance. For example, when making capital investments, profitability may temporarily decline, but growth will increase. In other words, there are management indicators that are crucial at any given point due to management strategies, but when asked which is the most important among these, I am convinced that it is "stability." In battle, having something that can be read as "they should be able to do this much..." allows for the development of tactics and combat strategies. That which can be read = the base. *For more detailed content of the column, you can view it through the related links. For more information, please feel free to contact us.*

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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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■Stagnant Executives Are Seen Through by Employees With the changes of the times, a large number of veteran executives are emerging. The change of the times means that the market has begun to deny past ways of working. The previous veteran executives emerged because they could not keep up with the changes in roles that came with the company's growth speed. Recently, the gap in work ability between veteran executives and mid-level and junior employees has diminished. Employees initially follow executives who can do their jobs well, because they want to learn how to work. ■Veteran Executives Who Can Only Respond with Power Harassment However, once employees who have learned the job begin to feel that there is nothing left to absorb from that executive, their perception and response to that executive changes. If that executive has human charm, the level of respect remains unchanged. However, if the executive lacks human charm, there may be cases where they are not regarded as an executive. In such cases, the executive may resort to power harassment by using their position, thus becoming a veteran executive. *For more details on the column, please refer to the related links. For further inquiries, feel free to contact us.*

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The company is a human zoo, designed to fail. The characteristic of a typical organization is that people with similar values gather together. For example, in the world of sports or hobbies, various organizations are characterized by the gathering of people with similar values. In small and medium-sized enterprises, people with different values based on their upbringing, likes and dislikes happen to live in the same area and accept the conditions to form an organization. Because people with differing values, backgrounds, generations, and genders come together to create an organization, it tends to be less cohesive. Therefore, it is important for you as the team leader to communicate and ensure understanding of the value judgments you are considering. If a system is created, it can initially be driven by the power of the team leader. However, if the sense of being forced to do something becomes strong, it will not last long. What is important is to teach perspectives and ways of thinking such as: ■ Why are we doing this? ■ Why is this perspective necessary? ■ Why does this happen? ■ What should we do in this situation? Without addressing these questions, it will not become a habit. *For more details on the column, you can view it through the related links. Please feel free to contact us for more information.

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The team's performance is designed not to improve. Understanding this fact begins to reveal the meaning of achieving results through leadership and management. Small and medium-sized enterprises have a structure where profits do not emerge unless they do something beyond their monthly routine work, and without considering measures for performance gaps, achieving goals is impossible. Creating performance requires both activity and management. Activity refers to sales and production activities aimed at securing revenue and profit. In contrast, management involves checking whether things are deviating from their intended state. Interestingly, if activities are left unattended, revenue, gross profit margin, profit, productivity, and funds naturally decrease. On the other hand, if management is neglected, expenses, accounts receivable, and inventory naturally increase. In other words, if a group is not controlled, activities will be carried out according to individual judgment, and management is often neglected because it is seen as cumbersome. Thus, performance is structured in such a way that without the functions of controlled activities and management by people or teams, it will not improve. *For more details on the column, please refer to the related link. For further inquiries, feel free to contact us.*

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Teamwork refers to the ability to take individual actions while maintaining a coordinated effort as a team. The importance of teamwork lies not just in improving the relationships among the people involved, but in the fact that things that are difficult to achieve with individual abilities and strengths can be accomplished by the team. Simply gathering the necessary number of people to work does not guarantee effective teamwork. A team fundamentally begins with all members having a sense of ownership as part of the team, sharing a common purpose and goals, and collaborating on the process to achieve them. To strengthen teamwork, it is necessary to engage in team building, and there are four key points to consider: ■ Sharing purpose and goals (understanding the purpose, goals, and methods) ■ Enhancing participation motivation (understanding what one needs to do) ■ Skill development (improving one's own work capabilities) ■ Cooperation (knowing and adhering to team rules) *For more detailed information, please refer to the related links. Feel free to contact us for further inquiries.

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Participation means thinking for oneself, making judgments, taking action, and taking responsibility. In contrast, mere attendance is just being present. The goals and objectives of the company and team are the same for all employees. However, the roles of the management, leaders, and members are different. There are countless themes that cannot be linked to results by just one manager or one leader. When all members think for themselves about what their team and individual roles should be, make judgments, and take action, a sense of ownership begins to emerge. This leads to a strong attachment to achieving results. Consequently, the level of joy experienced upon achievement increases. A company that can strongly feel this sense of experience becomes a "company where employees feel joy in working," and because individuals feel fulfilled by being needed by this company and team, they find happiness as workers. Members desire not only personal satisfaction gained from the company, such as rewards and promotions, but also satisfaction from achieving the company's goals and the joy of participating in that process. *For more details on the column, please refer to the related links. For further inquiries, feel free to contact us.*

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■What is Shared Management? As the environment changes, adapting to it is the same for society, industries, companies, and individuals. In a mature society where work becomes more complex, all employees working within an organization are required to handle two types of tasks: operational duties on the ground and tasks that drive the team. The style of responding to this change is called Shared Management. As diverse leadership is needed to drive teams, there are increasing cases where a single leader cannot manage alone. Instead of having a few individuals simultaneously manage the organization, it is necessary for sub-leaders and mid-level employees to take on the role of job leaders for each required functional role, thereby changing the standard level within the organization and enabling all employees to drive the organization. *For more details on the column, please refer to the related links. For further inquiries, feel free to contact us.

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The management style is a multifunctional development management. It is at a stage where efforts are being made to promote corporate scale expansion in terms of activities and to smoothly operate the internal management aspects as two wheels of the same vehicle. While expanding and growing through multifaceted development and the introduction of multifunctionality (such as multiple business divisions and headquarters systems), there is often a lack of staff functions, leading to a state of overall functional paralysis. There is a need to subdivide organizational functions, but responses to organizational management, such as work division, responsibilities, operation manuals, and the establishment of various regulations, are lagging behind. Additionally, there is a shortage of human resources to entrust key departmental roles, and the clash between those who struggle with organizational management and those who promote it creates a conflict between the old and the new, hindering the subdivision of organizational functions and increasing frustration for management. There is also an inability to deeply explore product composition and characteristics that should target specific markets and customer traits, resulting in delays in product development and exploration. Due to the lack of a management foundation to accommodate scale expansion, various turnover rates (such as accounts receivable and inventory assets) are deteriorating. Consequently, the liquidity of tangible assets is slowing down, but many companies are unable to grasp the underlying factors, leading to reactive responses. Since the "old" and "new" are clashing, if they do not successfully integrate, it could lead to a destruction of the organizational culture.

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The founder and president of the company, struggling to survive, suddenly realizes that the annual sales have reached 700 to 800 million yen. Up to this point, the growth has been centered around a sense of unity focused on the president's leadership. The key feature at this stage is the turning point where the president begins to step away from the frontline. In other words, it is also the time when the entrepreneur sheds the role of being the boss of sales and production and starts to challenge the responsibilities of being a manager. This turning point brings changes within the company, and the inability to adapt to those changes prevents them from breaking through the 1 billion yen (with 30 employees) barrier. The speed of a company's growth is significantly faster than the speed of individual growth. Moreover, the growth of the entrepreneur is notably faster than that of the employees, which creates distortions in a growing company. The president tries to challenge the core responsibilities of management but begins to have concerns about their vision and the capabilities of veteran executives. Various countermeasures are taken, but the entrepreneur becomes frustrated with the dilemma of things not going well. In summary, it is the desire of the entrepreneur to create a company that truly resembles a company, along with executives who cannot adapt to this and the internal systems and strategies that are not functioning well, that obstruct the barrier of 1 billion yen.

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There are two main points regarding the management transformation of growing companies. The first point is that as work increases, the number of people will also increase. Therefore, it is necessary to establish rules and standards and to systematize processes. In other words, it is about creating the structure of the company. The second point is that the president must shed the role of a walking rulebook and promote a change in mindset to operate the company with all employees. When the entire company is changing, the one who must change the most is actually the management. It is required for the management to evolve from being a walking rulebook to creating a company that embodies its identity, meaning that the company should be operated as an organization. If the management does not build the necessary skills, the enthusiasm of the president alone will not be enough to overcome the barriers to growth. However, it is important to clarify that those who genuinely wish to expand the company in a healthy sense must develop management skills that correspond to that scale. A company is not good simply because it is large, nor is it bad just because it is small. The crucial point is what kind of company the management wants to create, centered around the management itself, in a way that fits its size. It is essential to clarify that intention.

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Isn't this kind of thing happening in your company, where the company is growing and the number of employees is increasing? The essence of corporate growth is the increase in work. It is not that the company grows because the number of employees increases; rather, the company grows because the amount of work increases. If new people can immediately handle the company's tasks, there wouldn't be a problem, but they cannot do so right away. While the number of new employees increases, the upper management is too busy to provide training. However, since the number of employees is increasing, the workplace becomes chaotic, and work becomes concentrated on a few individuals, making them busier than before. A representative example of this is the manager. Managers ideally want to lead their teams, but due to a lack of manpower and being busy, they tend to get stuck in the day-to-day operations. As a result, it creates a vicious cycle, and the playing managers become exhausted. This situation is actually a phenomenon that is more pronounced in companies that are experiencing growth. In other words, while the company may appear to be growing, the reality is that the number of players is increasing, and the workplace is in a state of chaos like a kite with a broken string. Because there is no system to control people and teams, the workplace is functioning like a collection of individual shops.

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As the company grows, the workload increases, but an increase in personnel does not necessarily mean company growth. Training new employees takes time, leading to decreased productivity and increased waste. Managers become overwhelmed with managing their subordinates and tend to immerse themselves in on-site operations, resulting in exhaustion. This phenomenon is particularly evident in growing companies, where the company may appear to be thriving, but the on-site situation is chaotic. Due to the absence of a system for managing the organization, the company functions like a collection of individual enterprises. Each time the company hits a wall in its growth process, it is necessary to reassess the management approach. During the startup phase, the president directly manages the operations, but during periods of rapid growth, the role of department heads becomes essential. Once entering a stable phase, an organizational chart is established, and departments are solidified; however, it is difficult for the president to detach from on-site operations, leading many companies to struggle to overcome growth barriers. The key points of management in growing companies are to align personnel and establish rules and systems to accommodate the increase in workload, as well as for the president to shift away from an on-site-centric mindset and focus on building the company’s structure. Companies that wish to expand healthily must build management techniques appropriate to their scale.

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■Growth Trajectory from Expansion Growth Phase As we enter the expansion growth phase and aim to become a 10 billion company, we transition into the enhancement growth phase. The enhancement growth phase is characterized by a system that enables us to aim for a 10 billion company through multifaceted development and the introduction of multifunctionality. To surpass 5 billion and aim for 10 billion, it is crucial to expand the content of our multifaceted development and multifunctionality. Enhancement means "to broaden and enrich the content." Without enriching this content, we cannot become a 10 billion company. The growth speed of a company is certainly faster than that of individuals. However, the key is how to eliminate this speed difference. During this period, we must shed the "management style of the king and the pawn" and give birth to "executive managers." The growth trajectory of small and medium-sized enterprises is from the birth phase to the enhancement growth phase. ■A Good Company is One that Continues to Prosper Your company may have dreams and visions such as "I want to surpass 1 billion," "I want to surpass 3 billion," or "I want to surpass 5 billion." On the other hand, it is also a valid perspective to say that our company is fine at 700 million. A company is not considered good simply because it is large, nor is it bad because it is small. A good company is one that continues to prosper.

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■Expansion Growth Period This period of expansion and growth leads to becoming a 5 billion company through the introduction of multifunctional developments (multiple business divisions and headquarters system). However, while the outward appearance is that of a medium-sized enterprise, the content of each multifaceted and multifunctional aspect remains that of a small to medium-sized enterprise, resulting in a phenomenon of significant gaps. The company expands its operations through a multifaceted approach. However, when looking at the content of these branches, they are essentially small to medium-sized enterprises. In a small to medium-sized enterprise that operates from a single location, the president is usually present, allowing for quick responses to issues and easy communication of company policies. In contrast, branches are led by branch managers. Therefore, the content of the branches is actually weaker in terms of structure than that of small to medium-sized enterprises. In other words, "the gross is a medium-sized enterprise, but the content of each aspect is often weaker than that of small to medium-sized enterprises." This leads to the frequent occurrence of various gaps. To surpass the 5 billion mark during this expansion growth period, it is essential to implement multifunctionality, namely the headquarters and business division systems; otherwise, operations will not run smoothly. Additionally, a characteristic of this scale is the clash between the "old" and "new" in various matters. Through this clash, it is necessary to achieve "fusion" and build what is essential for the company; otherwise, it will become difficult to manage from a human perspective.

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Entering a period of expansion and growth, the stage aiming for 5 billion can be divided into two parts. ■ Decline and Bankruptcy Period This is a very dangerous state where growth slows down without substance, often leading to the worst-case scenario. Companies of this scale may appear substantial, but they lack real substance. They are desperately struggling to break free from the management styles of Osho and the pawn. The growth potential is what provides them with a grace period for this transformation. Once sales exceed 3 billion, the amounts of money coming in and going out fundamentally change by a digit. For small and medium-sized enterprises, a change by a digit in this context makes it difficult to cope with the situation, even just from the perspective of financial institutions, relying solely on the president's assets. Therefore, while consuming the "food" of growth potential, they must also develop the "blood and flesh" of balance; otherwise, they will be unable to maintain their existence.

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■Expansion Growth Phase The expansion growth phase refers to a company that has broken through the billion barrier and aims for three billion. It actively promotes multifaceted development centered around the power of its management. This multifaceted development involves the expansion of branches, stores, and areas. Therefore, it is inevitable that gross sales will increase. However, when growing from one billion to three billion, it is often the case that the internal structure of the company does not keep pace. Inevitably, a tendency for "expansion" precedes the growth phase. In cases aiming for three billion, the company lacks the elements of a strong strategy, such as the gold, silver, rook, and bishop in shogi, leading to a "king and pawn management style." If the king stumbles, everyone falls, which creates instability; however, on the other hand, there is also momentum as a company. If the current president is thinking, "My company is currently at eight billion, and I want to somehow break through ten billion," then as a manager, they must challenge themselves in their role as a leader.

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When entering a stable period, companies can be divided into three patterns. The next phase after the stable period is marked by the threshold of one billion in general scale. There is a clear difference between companies that surpass one billion and those that do not. These differences can be categorized into the following three patterns. ■ Stagnation and Decline Period When a company reaches a stable period and the president fails to propose the next growth strategy, the company quickly becomes stagnant. Stagnation means that nothing changes for three years. As a result, performance declines. A stable period does not mean that performance remains consistently stable; it indicates that a certain foundation has been established. The operating level at which small and medium-sized enterprises break even is typically around 95 to 98%. If the gross profit margin drops by 3% or 4%, the company can quickly fall into the red. It is important to understand that companies that cannot propose further growth strategies will soon enter a stagnation and decline period. ■ Mild Growth Period The mild growth period refers to a situation where a company experiences slight growth due to favorable product selection, customer selection, and industry selection. While the company deals with excellent products and has good customers, if no action is taken, there may be slight growth along the current trajectory, but it will not be able to break through the one billion barrier.

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■Stabilization Period When viewed in terms of sales, the stabilization period shows about 500 million yen for manufacturers, around 1 billion yen for wholesalers, and about 700 million yen for retailers. Entering the stabilization period brings two significant changes within the company. The first is the ability to begin comparing with the previous year. The second is that management starts to distance itself from the operational front lines. In small and medium-sized enterprises, the president leads from the front, driving growth. However, once in the stabilization period, it becomes necessary to have a factory manager to oversee production or a sales manager to handle sales. As a result, management must shift its focus from day-to-day operations to organizational management and steering the company. The number of employees also grows from 10 to 20, and from 20 to 30. It becomes difficult for the president to remain the top person on the ground indefinitely. The president must shift gears to focus on management tasks. In other words, without building management skills suited to the company, further growth cannot be expected.

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Humans are born and go through a growth process that includes kindergarten, elementary school, junior high school, high school, university, and adulthood. At each of these milestones, there are encounters with people, entrance exams, and graduations. Additionally, significant life events such as coming of age ceremonies and employment also occur. Similarly, companies have their own fundamental growth trajectories. ■ Birth Stage First is the birth stage. This is the period shortly after a company is established, which every company experiences. The survival rate of a company is harsher than the survival rate of humans. It is said that the survival probability of a company that has been born to survive for 10 years is 20-30%. ■ Foundation Stage Once the birth stage is over, it enters the foundation stage. This is the period when the foundation of products and customers gradually begins to take shape. ■ Rapid Growth Stage Next, the company enters the rapid growth stage. This occurs when the selection of products, industries, areas, and customers is favorable, leading to an increase in the number of customers and work, resulting in rapid growth. The increase in the number of employees does not cause rapid growth; rather, it is the increase in the amount of work that inevitably leads to an increase in the number of employees. In this way, the company experiences rapid growth.

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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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The rapid evolution represented by AI will bring new possibilities and benefits to human life, but what is important is not only how to utilize this change, but also to define new perspectives and ways of thinking that accompany it, without clinging to past common sense. As the times shift, this is only natural. In a mature society where work becomes more complex, all employees in an organization are required to perform two types of work: operational tasks and team leadership. And it is Sure Management that makes this possible. So, what is Sure Management? As diverse leadership is required to move teams, there are increasing cases where a single leader cannot handle the situation. The current environment has jobs available, but many companies lack the human resources (skills and numbers) to respond. In this environment, it is important not for a few individuals to simultaneously manage the organization, but to establish JOB leaders for each necessary role function, enabling all employees to move the team, change the standard level within the organization, and raise the overall level of all employees. To achieve this, it is essential to grant authority for each necessary role function and provide opportunities for individuals to take on leadership roles in their respective functional areas.

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I am also involved with many small and medium-sized enterprises, and the themes that are problematic in their organizational management are often common. Here is one example: 1. There are no goals or standards set, and no common objectives. 2. Goals are set, but many are baseless mental targets. 3. Progress on decisions made during the month is not monitored. 4. Playing managers are managing while also performing general duties, leading to strain. 5. Because capable members are made to do everything, there is an imbalance. 6. Different ways of working among individuals hinder efficiency. 7. Basic actions such as reporting and communication are not being performed. 8. The management policy is not specified, making it unclear what needs to be done. 9. Few people take initiative; most only act when directed by playing managers. 10. There is a lack of understanding of how to manage. 11. Only the planning aspect of P.D.C.A is executed, and evaluation is not being done. 12. There is an atmosphere of not following through even if decisions are made. 13. Playing managers do not have a grasp of their members' work. 14. There is a lack of a team-oriented mindset, among other issues. I believe many playing managers are aware of such problems.

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There are super-player type managers who are responsible for a large part of the team's performance, but management often does not go well. This is because team members inevitably become dependent on the super-player type manager. Since super-player type managers are busy with on-site work, they cannot teach new members even when they join. Indeed, people have their strengths and weaknesses. Super-players have their own path to success, and managers have their own path as managers. It's not a matter of which is better or worse; it becomes a theme of role distribution within the team. When a manager is a super-player, team members may hesitate to take initiative, and they start to feel that they are not needed, leading to a loss of motivation. Unbeknownst to them, the leader becomes like the emperor with no clothes. When organizing a team, it is important to operate in a way that does not rely solely on specific individuals. The more a team depends on certain people, the greater the risk, and the overall level does not improve.

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Did you learn the necessary leadership and management skills for running an organization from your school teachers during compulsory education? The answer should be NO. This is because such skills are not included in Japan's compulsory education curriculum. As a result, when you enter society and find yourself in that position, you experience being a leader for the first time in a real-world setting. Large companies prepare for promotions by undergoing various training programs. However, small and medium-sized enterprises do not have that luxury. It is not because you, as a leader, lack ability; it is simply because you are trying to implement things you have never experienced before. In such situations, when managing, there are specific issues that arise for playing managers. ■ Neglecting Parenting Syndrome There is a leader, but the focus is primarily on player duties, and team management is not being carried out, leaving the team directionless. ■ Too Free-Spirited Syndrome There is a lack of basic rule-setting for team operations, and members are moving freely. Additionally, there are many areas where the company's policies and departmental policies are not clearly defined, resulting in a lack of a unifying framework for shared awareness.

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A person who is dedicated solely to management is called a manager, which is often seen in large companies. In contrast, a playing manager is someone who takes on both management responsibilities and hands-on work in the field, a role typically found in medium-sized and small enterprises. To use a soccer analogy, a playing manager is someone who thinks about strategies such as player substitutions while kicking the ball on the field. However, in reality, there are no playing managers in the world of soccer. If you were to stand on the pitch as a playing manager, running while gasping for breath, could you think about player substitutions and strategy? It is a role that is difficult to balance. It is said that honesty begins with knowing one’s limits. If you cannot do it alone, it is wise to seek help from others.

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The structural formation strategy is aimed at: - Achieving the objectives and goals of management - Making the company more advantageous - Discovering the optimal location - Setting conditions that can be realized - Establishing an execution foundation - Practicing it We will review the structure that forms the backbone of the company and develop a structural formation strategy necessary for the company to continue to thrive. *For more details, please feel free to contact us.*

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Improvement is a shortcut that changes the way of doing things. - Change the work method to one that makes it easier for the worker without compromising quality. - It is a misconception that improvement cannot be made without excellent ideas; first, implement the obvious things. - Improvement is a change to better means, a selection of methods. - Improvement is the discovery of methods that anyone can do... eliminating tasks that only veterans can perform. - Waste reduction with a focus on time. To implement business improvement, we will introduce a strategy to discard routine work for the development of new strategies. *For more details, please feel free to contact us.

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Because we have unique technologies, we can offer services that differ from those of our competitors, and the more unique technologies we have, the better conditions we can create to win the battle. Every company has unique technologies, and reflecting on them and determining how to develop them is key to building a strategy. To find tomorrow's seeds, we will thoroughly inspect the unique technologies we can utilize within our company and use them to aid in strategy development. ■ Strategy Strategy is about finding a place where we can win, deciding on our weapons and methods of fighting, and concentrating all available resources on that one point to fight through to victory. - Finding a winning place is the "niche gap area." - Deciding on our weapons and methods of fighting involves "discovering and utilizing unique technologies." *For more details, please feel free to contact us.

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Now is the era of strategy. Sales and profits cannot be secured by selling the same product to the same customers in the same way. A proactive management strategy that creates a market that should exist is an absolute requirement. The content of concept marketing includes: - The targeted audience to narrow down - What kind of product to target at the audience - Target audience - Positioning of existing improvement businesses and new businesses in the market - Existing improvement businesses - What are the goals for new businesses? And what is the timeline for achieving them? For small and medium-sized enterprises, a proactive management strategy that chooses a market suited to their capabilities and ensures the capture of the target audience is an absolute requirement. It is about thinking together about what market the company should thrive in and building a strategy. *For more details, please feel free to contact us.

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The way small and medium-sized enterprises fight is often focused on "short-term battles." As a result, short-term strategies tend to dominate, making it difficult to succeed in mid-term development. Realistically speaking, the driving force behind mid-term product development is also the promoter of annual performance. It is challenging to dedicate oneself solely to mid-term development. However, if mid-term development is not pursued, relying only on existing methods will lead to a decline of "10-20%." Therefore, it is necessary to engage in mid-term development alongside annual performance creation; otherwise, mid-term opportunities will not emerge. Since there is no specialized function for thinking about and implementing management strategies, a "superman" is needed temporarily to compensate for this gap. This presence creates the history of the company. They are the executives and the senior management.

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Management has its good times and bad times. When executing a mid-term plan, one should also anticipate situations where things do not go well. Often, if one waits until a bad situation arises to consider stepping back, they miss the timing. First, I would like you to establish criteria for "under what circumstances to withdraw, to stop, or to scale back." Humans have a peculiar tendency to wishfully think that if only this or that could go well, or if only we could develop that customer, things would change. However, while clinging to that desire, management can lose its balance. It is important to set criteria for stopping execution from the outset. - Initial signs of failure - Methods to mitigate failure - Ways to withdraw from failure Additionally, from a different perspective, it is necessary to consider the "side effects that may arise and the potential losses" when deploying that strategy. Humans are creatures of habit. When trying to do something new, there is often a lot of "no" thinking. The key is how to dispel that. In this case, it is important to examine the inhibiting factors and consider means of overcoming them.

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The mid-term plan creates an environment that is easy to develop, but it is also an environment where one cannot envision the future without creating it. The battle of small and medium-sized enterprises, though small, requires a winning system. This is because the possibility of a single defeat being fatal is high. In battle, the key is how to create the conditions for victory. Once the "weapons for battle and which market will be the main battlefield" are determined, the next step is to organize the practical implementation. There are no companies that fight to lose. However, because they fight without creating the conditions for victory, the probability of losing increases. Establishing the conditions for victory involves: - Deciding on the weapons for battle - Determining which market will be the main battlefield (area, customers) - Deciding how to expand the battlefield (sales, profits) - Setting the duration of the battle - Organizing the battle and how to create it - Securing funding The process begins by first considering these key themes.

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