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[Column] The Density of Interaction Between the President and Employees is a Factor in Company Growth

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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 sessions from the president. Recently, I had the opportunity to attend a management plan presentation for a certain company. When they first started the management plan presentations 16 years ago, they had 60 employees, and now they have grown to 250. This time, the presentation was held at the same venue as 16 years ago, returning to the origin after 16 years. Back then, the president was the sole star, with a management style akin to a king and a pawn. In this presentation, there were multiple stars (executives) who confidently presented, showcasing their growth and the expanded team. Thanks to the efforts of the president, executives, and employees, the company has grown significantly. 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, you can view it through the related link. Please feel free to contact us for more information.*

Company：マイスター・コンサルタンツ
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[Column] Conveying the Spirit of Entrepreneurship 1 The Spirit of Entrepreneurship is Always Right

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In the founding period of a company, there are no customers, partners, facilities, goodwill, or employees as we know them today. In other words, starting from a situation of "nothingness"—lacking people, goods, money, achievements, and trust—is a commonality in the founding stages of businesses throughout history and across cultures. The only thing that one can hold onto during this time is the "effort rhythm" of wanting to please customers somehow and working diligently with a single-minded focus. This transforms into enthusiasm and sincerity, allowing the company to overcome various challenges and grow into its current form. Moreover, companies that inherit the baton from their predecessors cherish and carry forward the family rules, business teachings, and lessons passed down through generations. Such founding spirit remains valid over time; when a company forgets this spirit, it tends to lose its direction, leading to various management issues. The struggles and stories from the founding period are often unknown to current employees, making it crucial to understand the origins that shaped the present state and content of the company. Knowing this history helps in understanding the values and perspectives of the management, which in turn leads to a unification of values as corporate individuals and professionals. *For more details on the column, please refer to the related links. For further inquiries, feel free to contact us.*

Company：マイスター・コンサルタンツ
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Manufacturing Subsidy Consultant

Support for manufacturing subsidies through consulting. 11th application (deadline for submission: 8/18) is currently open. Over 200 companies have been accepted.

Our company provides support for "Monozukuri Subsidy Application Assistance." Since general subsidies undergo a review process after application, it is important to create a plan that meets the review criteria for each subsidy in order to be selected. Our company offers total support from the proposal of subsidies to the creation of the plan and the receipt of funds. Please feel free to contact us if you have any requests. 【Basic Support Flow】 1. Hearing on Investment Content 2. Plan Creation 3. Application Support 4. Achievement Report Support 【About the Monozukuri Subsidy】 The Monozukuri, Commerce, and Service Productivity Improvement Subsidy supports small and medium-sized enterprises and small business operators in making capital investments to develop innovative services, prototype development, and improve production processes in response to institutional changes they will face over the coming years (such as work style reforms, expansion of employee insurance coverage, wage increases, and the introduction of invoices). Additionally, special provisions are established for businesses facing tough economic conditions and those working on productivity improvements in the digital and green sectors. *For more details, please contact us.

Company：東京経営サポーター
Price：1 million yen-5 million yen

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Management Capability Improvement Plan Consultant

Support for the formulation of management improvement plans aimed at special depreciation or a 10% corporate tax deduction, points for small business sustainability subsidies, financial support, and other related items.

Our company provides support for "Management Capability Improvement Plan Applications." Please feel free to contact us if you have any requests. 【Basic Support Flow】 1. We will create a Management Capability Improvement Plan based on the hearing content. * Financial information such as settlement data will be required for the creation. 2. Once the plan is completed, we will send the data to the customer. 3. The customer will then mail it to the secretariat. 4. After the application, if there are any requests for corrections from the secretariat, we will assist until certification is obtained. 【About the Management Capability Improvement Plan】 You can obtain the following preferential measures: ● 10% deduction on corporate tax or special depreciation Eligible parties: Companies with a capital of 100 million yen or less / Sole proprietors, etc. Eligible equipment: Machinery and equipment worth 1.6 million yen or more (new) Requirements: Equipment that improves productivity by an average of 1% or more per year ● Additional points for subsidies (valid for up to 5 years) - Such as the Small Business Sustainability Subsidy ● Financial support Expansion of credit guarantee limits by credit guarantee associations for small and medium-sized enterprises * For more details, please contact us.

Company：東京経営サポーター
Price：1 million yen-5 million yen

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Human Resource Management Equation: The Role of Allowances

An explanation of various allowances that are inseparable when considering monthly wages!

Monthly wages can be broadly divided into base salary and various allowances. The base salary is determined mainly based on factors related to the "quality of work," such as role responsibilities and individual capabilities, and is positioned as the core fixed pay corresponding to the prescribed working hours. In contrast, various allowances address variable wage issues and concerns specific to certain employees, serving an important function in complementing the base salary. Specifically, they reflect four elements in wages that the base salary cannot fully cover: "amount, type, and location of work," and "living conditions." *For more detailed information, please refer to the related links. Feel free to contact us for further inquiries.*

Company：プライムコンサルタント
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[Column] ➂ The President of a Small to Medium-Sized Enterprise Betting on Their Way of Life

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A certain company president, although young, desperately endured shame and tackled challenges head-on to avoid bankruptcy. He was short of 10 million yen needed for settlement funds. He sought help from government-affiliated financial institutions, but due to the lending restrictions at that time, they completely ignored him. As thoughts of bankruptcy loomed for tomorrow, he suddenly came up with the idea of contacting a local representative with whom he had no prior acquaintance. He quickly reached out, met with the secretary, conveyed his dire situation and the current lending restrictions, and managed to gain understanding, thus escaping the crisis. Another company president underwent civil rehabilitation. Once under civil rehabilitation, borrowing from financial institutions becomes impossible. He was forced into a very tough management method that required him to operate solely with cash. The president not only threw away his shame and reputation but also completely changed his personality. He became a demon who would take on any job and seize even the smallest connections for work. Six years later, he received a call from this president, who, with tears in his eyes, joyfully shared that the court had recognized the conclusion of the civil rehabilitation process. I want them to feel proud of running a self-sufficient business, no matter how small, and to participate in it (thinking for themselves, taking action, and accepting responsibility). I strongly hope they will convey the greatness of their company to their employees and families.

Company：マイスター・コンサルタンツ
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[Column] ➃-➀ The Background of Small and Medium-Sized Enterprise Presidents as a Race

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Can't you even do something like this? Don't you understand something like that? How many times must small and medium-sized enterprise (SME) owners have felt like they were biting on a bitter bug? It takes time to bridge the gap between 'tactile sense' and 'common sense' in both mind and heart. The tactile sense refers to events in the field, while common sense is the value system created by the environment in which one was raised. This difference troubles business owners. Many company presidents would say that their inherent personality is suited for a No. 2 position. However, whether they became founders out of passion, were forced into the role of a manager due to circumstances, or are second-generation successors who must take over, the fact remains that they are currently business owners. Small and medium-sized enterprises are often disorganized entities lacking in people, goods, money, and management. However, because they work to bring together such organizations, SME presidents become a 'common breed.' If you manage SMEs with the above characteristics for 20 or 30 years, you inevitably become a common type of SME manager.

Company：マイスター・コンサルタンツ
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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.

Company：マイスター・コンサルタンツ
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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.

Company：マイスター・コンサルタンツ
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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.

Company：マイスター・コンサルタンツ
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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.

Company：マイスター・コンサルタンツ
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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.*

Company：マイスター・コンサルタンツ
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