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[Column] ➇-➀ The Illness of Small and Medium Enterprises: Delegation of Work

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Small and medium-sized business owners cannot delegate work to their employees. Organizational management is about using people to improve performance. In other words, it is about effectively mobilizing subordinates to achieve results. However, for a president who has managed each department alone until now, there is significant resistance and concern about completely entrusting departments and tasks to others. Yet, if one wishes to grow the company in a healthy way, it is necessary to change the way the company is steered. It is essential to shift to an organizational management style that delegates authority. However, I want to clarify that I am not saying that delegating is always the correct approach. For a president who feels they must do everything themselves, that is acceptable as long as they are not aiming to grow the company. This is also one way for a company to exist.

Company：マイスター・コンサルタンツ
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[Column] ➇-⓶ Illness of Small Businesses: Inability to Perform Basic Operations

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Another problem often seen in many companies is that they are not performing the "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 obvious basic actions that an organizational member must do. If you cannot perform these basic actions naturally, like breathing in and out, you cannot be a part of the organization. Particularly lacking are the actions of reporting, communicating, consulting, and giving instructions and orders. The inability to give instructions and orders is serious; failing to perform these basic actions that move people can lead to chaos in the workplace. Additionally, they are also failing 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, then any attempt to do something new is futile.

Company：マイスター・コンサルタンツ
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[Column] ➇-➂ Principles for Unifying Organizational Groups

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The mid-term vision plays a role in breathing life into the company's future. Breathing life into the company's future means instilling dreams within the company, where the president, executives, and management create a vision, communicate it to employees, and execute it together as a whole. It is important to clarify how we want to shape our company or store. In response to changes in the external environment and the realities of internal resources three, five, or ten years from now: - What kind of company do we want to create? - What kind of business do we want to pursue? - What functions do we want to have? As a result, we will build what the scale-related factors such as sales and number of employees will look like. A vision is a dream and a will; it is something that is created. It reflects how the company wants to be based on the entrepreneur's corporate view and management philosophy. - For the president, what kind of company does he want to create? - For the employees, what kind of company do they want to work for? Indeed, since it spans a long term, the aspirations become stronger. However, those aspirations are based on the entrepreneur's corporate view and management philosophy, as well as the employees' work and life perspectives. They are not mere wishes; that is why they hold significance.

Company：マイスター・コンサルタンツ
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[Column] Principles for Unifying Organizational Groups ④

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The structural formation strategy is to discover the optimal location for one's own company. The optimal location refers to the scale and method that are easiest to operate and most likely to generate profit. It is time to reconsider the conventional norms that have been taken for granted in order for the company to continue to thrive. If we do not review the unconscious habits related to our management, discover the optimal location, and build a strategy for structural formation, we will end up losing the competition against other companies due to differences in management techniques. For example, in an era where management is becoming increasingly about reduction, blindly aiming for sales expansion could lead to a loss of the company's value. It is essential to take a fresh look at management practices with an "all-no" approach. Humans are creatures of habit, and we can become unable to recognize issues in actions we perform unconsciously. This management structure formation strategy consists of five components: - Human and organizational strategy - Material strategy - Management technology strategy - Financial strategy - Risk response strategy The structural formation strategy is about exploring the optimal location for our company, the scale and method of management that is easiest to operate. It involves finding the optimal location that aligns with: - The personality of the manager - The company's characteristics - The specific industry To achieve this, it is crucial to reassess management practices with an all-no perspective.

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[Column] Principles for Unifying Organizational Groups ➅

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A product strategy is a measure to bridge the gap between goals and actual performance. A product refers to the materials for business, and a product strategy is a measure to address the gap in achieving goals. In departments like sales or manufacturing, where numerical targets are set, it involves gap measures, while in departments like management or operations, which focus on qualitative targets, it involves strategies to address the gaps. For example, if last year's sales were 800 million and this year we want to reach 900 million. Identifying the 100 million shortfall is the product. The ways to cover this shortfall include: - Covering it with sales - Covering it with gross profit - Covering it by reducing costs - Covering it through turnover, among various other methods. Companies that use the term "product" have a mindset focused on bridging gaps and shortfalls. Generally, the concept of performance varies by company. Some companies consider performance based on sales revenue, while others may consider operating profit. Our company's management department must determine what constitutes performance for each department. For example, the performance of the management department may be measured by balancing the regular income and expenditure, while the sales department may balance based on gross profit, among various performance metrics. In any case, how to create the materials for business is the essence of the product strategy.

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[Column] Why is there a difference between companies even when they start at the same time in the same region?

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It is the difference in the quality of basic employee behavior. Starting the same type of business in the same region at the same time means that the selection of products, regions, and the timing of the start are the same. Yet, differences in performance arise in company management. I have had several cases where I assisted Company A and Company B, which started in the same industry and region at the same time (though at different times). The characteristics I felt at that time between growing companies and those that cannot grow are that employees of growing companies have developed the habit of taking notes without being prompted. However, employees of companies that cannot grow seem to have an unusually good memory and lack the habit of taking notes. Additionally, there is a difference in awareness regarding decisions made within the company. Employees of growing companies have a sense of obligation to adhere to what must be followed, while employees of companies that cannot grow have a low awareness of the established decisions and do not strive to adhere to them. It is not a question of whether the chicken or the egg came first, but if asked whether they have been able to grow because they have grown or have grown because they are capable, the answer would be that they have grown because they are capable. This difference likely stems from the time, wisdom, and tenacity that the management has devoted to raising the foundational level of the human collective within the company.

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[Column] Development of New Businesses (2) The Principle of Entering New Businesses is the Bamboo Grove Method

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The bamboo grove method literally imitates the way bamboo grows as a thicket. It revolves around considering the current industry or sector one belongs to, as well as related industries and surroundings. It also involves assessing whether there are promising business opportunities that can leverage existing human resources, technology, sales channels, buildings, and equipment. In other words, like a bamboo grove, it involves developing businesses that are related in some way, branching out from a single root. This approach is low-risk and does not lead to significant failures. The points to keep in mind in this case are as follows: (1) Develop based on areas where strengths and expertise can be leveraged. (2) Assess whether idle assets (land, equipment) and human resources can be utilized. (3) Determine if the industry planned for entry is a growing sector or a niche area that large companies do not venture into. (4) If entering as a latecomer, investigate whether the leading competitors in the same industry are generating profits. (5) Consider whether there are synergistic effects expected with the main business. (6) Assess the extent to which human resources and investment can be utilized. (7) Identify whether assets such as land, buildings, and employees from previous businesses can be leveraged. Exploring the possibilities of upward, downward, and lateral expansion based on this bamboo grove method, centered around the current business, forms the foundation for new business development in small and medium-sized enterprises.

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[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 expansion. The criteria for upstream and downstream depend on whether a company is moving from its current business model to manufacturing (upstream) or to retail (downstream). Additionally, approaching the final end user is also a consideration. Upstream expansion refers to cases where a business enters into operations that have manufacturing or construction functions. This does not necessarily require the company to make capital investments; it can involve outsourcing or subcontracting to acquire manufacturing and construction functions while executing its own plans. A representative company is Uniqlo. A typical example of downstream expansion is when a lumber company undertakes new housing 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 different division, or a building materials sales company may engage in termite extermination or house cleaning services, all of which are expansions into peripheral fields related to housing. The key points of horizontal expansion are entering fields where a higher gross profit margin can be achieved compared to the current core business, leveraging existing personnel from traditional businesses, and targeting niche areas with few or no competitors that have future potential.

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[Column] Warning of a Surge in Veteran Executives

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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 their roles due to the speed of the company's growth. Recently, the gap in work capabilities 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. ■Veteran Executives Who Can Only Respond with Power Harassment However, once employees who have learned the job begin to feel that there is nothing more to absorb from that executive, their perception and response towards that executive change. If that executive has personal charm, the level of respect remains unchanged. However, if the executive lacks personal charm, there may be cases where they are not regarded as an executive. In such cases, the executive may resort to power harassment by exploiting their position, becoming a veteran executive. *For more detailed content of the column, please refer to the related links. For further information, feel free to contact us.*

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[Column] Principles of Battle

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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 moment due to management strategies, but when asked which is the most important among them, I am convinced it is "stability." In battle, having something that can be read as "they will probably do this much..." allows for the development of tactics and combat strategies. That which can be read = the base. *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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[Column] You cannot become a member of a fighting group if you do not know about the company or the product.

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Everyone knows themselves well. There are no employees who cannot answer questions about their date of birth, 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 products, few employees can provide adequate answers. It's not just "the grass is greener on the other side"; 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 to understand the reality. Many would be astonished by the results. When you think about it calmly, it is quite remarkable that small and medium-sized enterprises attempt to compete without knowing their own company’s overview or products. They spend time without any sense of problem awareness, which leads to stagnation. Such a group can be described 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. For further inquiries, feel free to contact us.*

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[Column] Communicating Corporate Value Judgments and Behavioral Standards

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What are the value judgment criteria that the top executives and management should align on? 1. Management philosophy and the company's value of existence 2. Understanding and agreement on 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 judgment criteria 9. Basic thinking on 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 intent to the employees. In a parent-child relationship, children become independent by learning the value judgment criteria, ways of acting, and behavior 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 an important role in this process. *For detailed content of the column, please refer to the related links. For more information, feel free to contact us.

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Human Resource Management Equation: Performance-Based Bonuses

Let's take a little break from discussing monthly base salary and allowances, and share some thoughts on bonuses!

It seems that many companies still determine the amount of bonuses based on a certain number of months' worth of wages. This approach tends to legitimize and promote the idea of bonuses as an entitlement, which does not effectively encourage a sense of participation in management and results in significant losses in terms of talent management. On the other hand, it appears that there are also an increasing number of companies that offer no bonuses at all. While this may be unavoidable given the tough business environment, it seems necessary to find some creative solutions rather than applying a blanket policy of zero bonuses. *For more details, please refer to the related links. Feel free to contact us for more information.*

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The necessity of a better reward system from the "Human Resource Management Equation."

A compensation system that can be understood and accepted by the majority of organizational members, from executives to individual staff, is required!

Whether it is wages or bonuses, there are no scientific laws or truths regarding how they should be distributed. What exists is the decision-making process on how to rationally and optimally redistribute the income obtained from external sources within the organization, based on political and overall judgments, as well as the selection of methods and know-how. The same applies to structuring the organization. Someone must make personnel decisions. It is a very difficult task, but someone must exercise that authority. *For more detailed information, please refer to the related links. Feel free to contact us for further inquiries.

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Technical Consultant

Utilizing mechatronics and optical technology to transform future lifestyles and propose new value creation in the market.

Introducing the "Technical Consultant" offered by Blue Optics Co., Ltd. We provide our optical knowledge. You can gain specialized knowledge from a different perspective than your original industry, enabling the optimization of development speed. We will fully utilize our accumulated knowledge and technical skills from experience, as well as the connections (partners) gained through development and mass production experience, including many overseas partners, to support you from planning and prototyping to mass production. 【Features】 ■ Provision of our optical knowledge ■ Gain specialized knowledge from a different perspective than your original industry ■ Optimization of development speed *For more details, please download the PDF or feel free to contact us.

Company：ブルーオプテック
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Gikitake Engineering Office

Contributing to the preservation of the global environment through technology, safety, management, environmental management, and energy diagnostics.

Processing content, main products and technology features: No information available. Technical, safety, management, and environmental consultant. Utilizing experience as a project manager (design, manufacturing, construction) and various qualifications, providing comprehensive support for small and medium-sized enterprises in technology, safety, management, environmental management, and energy diagnostics.

Company：21あおもり産業総合支援センター
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DX Consultant

We will conduct everything from hearing about issues and needs to implementation, testing, and acceptance.

Our company offers DX consulting services. We have two plans available: the "IT Support Plan," which allows you to consult about IT via messaging services like email, and the "DX Project Plan," which involves planning and requirements definition. Please feel free to contact us if you have any requests. 【Plans】 ■ IT Support Plan ■ DX Project Plan *For more details, please download the PDF or feel free to contact us.

Company：GOAT
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