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[Column] ➃ Employee Participation Management Plan ➂

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Seven Important Perspectives in a Business Plan There are seven key points that are most important in a business plan. 〇 Clearly define the company's purpose and goals 〇 Develop strategies and tactics to achieve target figures (sales, gross profit, operating profit, ordinary profit) 〇 Create specific plans for product promotion, ensure thorough communication, and clarify role distribution 〇 Participation of all based on open management is fundamental 〇 Establish mechanisms for verifying outcomes (overall and individual) and making course corrections 〇 Focus on practical content that is used in daily operations 〇 Clarify the rules for distribution upon achieving management policy goals Some business owners may wonder if creating a business plan will lead to immediate profits. The conclusion is that they do not make profitable plans, which is why they do not earn profits. Most companies inevitably have gaps in relation to their goals. Without the materials to bridge that gap, it is natural that they cannot achieve their targets. Understanding this difference will lead to the creation of a profitable business plan. A business plan is not the purpose or goal of management itself, but merely a means to achieve them; however, it is absolutely essential for creating a management style that can generate profits. In other words, a president who does not create a business plan is not fulfilling their role as a manager.

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Management Seminar
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[Column] Growth Trajectory of Small and Medium-sized Enterprises 6: From Expansion Growth Phase to Decline and Bankruptcy Phase

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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 when growth slows down without substance, often leading to the worst-case scenario. Companies of this scale may have a considerable size, but lack substantial backing. They are desperately struggling to break away from the management styles of Ousho and Ayumu. The growth potential is what provides them with a grace period for this transformation. Once sales exceed 3 billion, the amounts of 'incoming and outgoing money' fundamentally change by a digit. For small and medium-sized enterprises, a change of one digit can create a situation that is difficult to manage solely with the president's assets, especially when considering financial institution strategies. Therefore, while consuming the "food" of growth potential, they must also develop the "blood and flesh" of balance to maintain their body.

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[Column] ➇-➂ The Illness of Small and Medium Enterprises: Struggling with Organizational Development

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There is a problem with "rule and standard creation." In company operations, there are "activities" and "management." Activities involve breaking new ground, while management involves controlling the harvest. Activities are the top priority, but if there is only activity without proper management, it can lead to wasting the fruits that could have been harvested. The foundation of that management creation is "rule and standard creation." When the number of employees reaches around 20, managers tend to want to create an organizational chart. I understand that feeling. However, there are also problems with how organizational charts are created. Many companies assign positions to "people." This is a shogi player-like way of thinking. As a result, the organization does not function properly. The goal is not to assign positions. First, it is essential to consider what functions are currently needed by the company. If those functions are unclear and people are simply assigned, it will not work. There may be an organizational chart, but the responsibilities and scope of work for the position holders are not clearly defined. An organizational structure where nothing flows without going through the president is a typical example of this. Many companies that have just created an organizational chart find that it actually makes things more difficult for the management.

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Master's Perspective ➂ Why do wage reforms in small and medium-sized enterprises fail?

We are explaining the fundamental concepts of strategies for growing a company (future breakthrough power) through three themes. Please use this as a reference.

We will introduce the perspective of our company's Meister: "Why do wage reforms in small and medium-sized enterprises fail?" The issue arises because the wage theme is viewed solely from the aspect of the wage system, which obscures the essential themes of management. Many business owners are troubled by the "reform of the profit structure through the variable cost of labor." To achieve this, the following three points are crucial: 1. Building control techniques for labor costs, which account for the largest share of fixed costs, 2. Thoroughly instilling the philosophy that there can be no distribution without productivity, 3. Focusing on four key points for converting to variable costs (building management techniques, reviewing personnel composition ratios, wage reform, and reassessing personnel treatment and employment types). In other words, the conversion of labor costs to variable costs cannot be solved solely through the wage system; a company-wide reform is necessary. Recently, many small and medium-sized enterprises have been implementing various management measures such as operational management of business plans, personnel evaluation systems, competency requirement documents, and performance evaluations. However, these initiatives are often disjointed and resemble a mandala pattern, lacking a systematic approach, which leads to failure. In reality, the situation in many small and medium-sized enterprises is that "the business plan is unrelated to the personnel evaluation sheet" and "there is a weak connection between the business plan and performance evaluation." *For more details, please download the PDF or contact us.

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[Column] ➃ Employee Participation Management Plan ➂

[Column] Growth Trajectory of Small and Medium-sized Enterprises 6: From Expansion Growth Phase to Decline and Bankruptcy Phase

[Column] ➇-➂ The Illness of Small and Medium Enterprises: Struggling with Organizational Development

Master's Perspective ➂ Why do wage reforms in small and medium-sized enterprises fail?