[Management Column Vol. 81] The Difference Between Organizational Management and Collegial System
This is a column written by our representative, Kazuaki Sawada, detailing the insights he has accumulated in the fields of business revitalization, management improvement, and bank relations.
The related article this time is "The Reasons Executives Do Not Act for Overall Optimization." It explains the importance of sharing the company's direction and decision-making criteria, considering the limitations of having the president run the company alone, and empowering executives with authority and execution responsibility. Please refer to it as well.
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Please use this as hints for management decisions, such as building a management foundation, improving management quality, cash flow management, bank relations, business succession, and restructuring after the appointment of the second or third generation. Also, feel free to contact us with any questions or inquiries when putting this into practice.
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In an era of rapid change, relying solely on the vision and execution capabilities of one manager to drive a company has its limits, making organizational management important. However, organizational management is different from a consensus-based system. If it leans too much towards consensus, it can lead to an increase in meetings and rules, which may slow down decision-making and execution speed. Organizational management involves sharing the company's direction, clarifying responsibilities and authority, and allowing multiple responsible parties to make judgments and execute within their respective decision-making scopes. The purpose of organization is not to increase meetings but to "enhance execution capability." Cultivating responsible decision-makers leads to a strong organization. Next time, I will discuss "Reviewing and Clarifying the Management Philosophy."
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Our company is a group of professional consultants who value practical insights born from responding to corporate needs. With practical management know-how and a strong belief, we solve management challenges and achieve everything from startup support, reconstruction and revitalization support, growth expansion support, and business continuity support to building a solid management foundation.
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