Creation of Management Policy
- SHIMATSU (Prudence in Spending): Avoiding Wasteful Expenses and Using Money Wisely When Needed
“Invest with earned profits, not with borrowed money.”
1) Eliminating Waste: SHIMATSU is not merely about frugality; it signifies a disciplined approach to thoroughly eliminating unnecessary expenditures.
2) Spending Wisely When Necessary: The key to making “effective investments” lies in knowing when to spend money strategically, rather than hoarding it indiscriminately.
3) Investing with Self-Financing, Not Debt: Relying on loans can lead to interest burdens and repayment obligations, potentially hindering sustainable business growth. Instead, businesses should focus on generating steady profits and reinvesting the surplus for further growth.- SAIKAKU (Business Acumen): Identifying Opportunities and Pioneering Untapped Markets
“Create demand at the right place and time by doing what no one else is doing.”
1) Insight to Identify Business Opportunities: SAIKAKU represents a combination of vision, foresight, and execution. It is the ability to recognize where potential demand exists.
2) Doing What No One Else is Doing: Instead of following competitors, one must identify untapped markets and emerging needs, positioning themselves as an innovator rather than a follower.
3) Creating Demand: Rather than relying solely on existing demand, businesses should proactively introduce new value propositions and services, thereby expanding the market.- SANYOU (Strategic Finance): Thinking Beyond Simple Accounting and Maximizing Long-Term Gains
“Investment minus recovery equals profit; the conventional formulas ‘cost + profit = revenue’ or ‘revenue – cost = profit’ are misconceptions.”
1) Looking Beyond Short-Term Gains: While SANYOU is often associated with accounting and bookkeeping, it fundamentally refers to the ability to make forward-thinking investment decisions.
2) Accepting Short-Term Losses for Long-Term Gains: Fear of immediate expenses can hinder the creation of new value and prevent significant future returns.
3) Viewing Investment and Recovery as a Set: The focus should not only be on expenditures but also on designing a process that ensures a return on investment.- JINZAI (Human Capital): Nurturing and Maximizing the Potential of People
1) People as the Core Asset: The most critical element in any business is its people. Creating an environment where talent can thrive is essential for long-term success.
2) A Culture of Development: Employees should not be seen merely as costs or labor resources but as valuable contributors. Providing opportunities for education and growth helps maximize their potential.
3) Building Strong Relationships: Organizations thrive on teamwork. Mutual understanding and trust within a team directly impact performance and business success.
Identify issues, organize them, and implement solutions.
- Extract issues from customer thoughts (VOC) through interviews.
- Identify key terms from the perspectives of finance, customers, and processes, and compile them into universally understandable themes.
- Continuously question from the customer’s perspective based on identified issues and common themes to provide insights for developing solutions.
Value creation strategy from the customer’s perspective.
- Product Value Element Strategy:
Develop strategies focusing on functionality, quality, design, brand image, price, and rarity, with a special emphasis on quality.
“The goal is a price of zero.“- Structure Value Element Strategy:
Formulate strategies based on delivery time, convenience, reliability, and rapid response.
“The goal is a time of zero.“
Refine SWOT strategy
- SWOT analysis -> Identify issues -> Plan SWOT strategy
Change strengths into further strengths.
Change weaknesses into strengths.
Change threats into opportunities.- Plan strategies for each product, labor cost, and asset.
- Set goals
- Create an action plan
My policy:
To observe, care for others, and strive to be considerate.
I am the sole one who could undertake such a task.