An SME where all employees decide the medium-term management plan. A major transformation from top-down to an organization where employees can take pride in their work
Sumida Byora Seisakusho Co., Ltd.
【Overview of Initiatives】
To break the cycle of long-standing top-down management that lacked a culture of employees thinking and acting for themselves, and to overcome the inability to leverage the unique characteristics of each branch and department or foster a sense of unity, the company implemented delegation of authority where each branch, rather than management, develops the management plan.
① Shifted to bottom-up management led by employees, with each department exercising discretion to formulate a medium-term management plan with the participation of all members
② In addition to promoting sales policies and operational improvements that leverage unique characteristics, the company fostered a sense of team unity and proactivity by sharing goals through discussion.
A culture where employees proactively set goals and take action has taken root, improving team unity. Individual growth is now linked to evaluation criteria, leading to increased motivation and deeper internal communication.
【Award Highlights】
● Revitalized the "workplace culture of employees thinking and acting for themselves" that had been lost due to top-down management through bottom-up management.
● Delegated authority to each department for sales and profit targets, sales strategies, operational improvements, and recruitment and training plans, providing opportunities for everyone from department heads to new members to participate in formulation.
● Increased sense of ownership among all employees. Expectations for discussion and mutual growth between management and the front lines.
An organization where employees decide everything, from management plans to goals
Sumida Byora Seisakusho Co., Ltd., a screw specialty trading company in Higashiosaka City, has long been under top-down management. This management style reportedly deprived employees of their proactivity and was a factor in the lack of unity between departments. The company was unable to leverage the unique characteristics of each branch, and proposals for operational improvements were rarely generated. To break this situation, the company made a major shift toward bottom-up organizational management, where all employees are involved in management. "Bottom-up" is not just a slogan. From sales targets and sales strategies to recruitment plans and even the medium-term management plan—everything is decided by the front lines.
Employees who had "given up on expressing their opinions"
"I can't believe I've come back to such a place..."
In 2008, Takaaki Sumida, the current president who joined the family business, Sumida Byora Seisakusho, could not help but feel this way.
"There were so many issues within the company, but even when I asked for proposals for operational improvements, no one said anything. The employees had given up on expressing their opinions. I think the intense top-down management of my father (the current chairman) had continued for so long that an atmosphere of 'just do what the president says' had been created." (Mr. Sumida)
To draw out employee opinions, Mr. Sumida began individual interviews with each employee. As a result, he realized that employees actually had many ideas. Thinking, "Then I should create a place where they can be utilized," he introduced a system where all employees formulate sales budgets and medium-term management plans.
However, it feels too bold to leave even the medium-term management plan, which can be called the foundation of management, to the front lines. Reflecting on this question, Mr. Sumida says, "It was necessary for business growth."
"Our company has different strengths and work styles at each branch, and the market characteristics and the ideas of each branch manager also vary. It is inherently inefficient for the head office to decide everything." (Mr. Sumida)
To draw out employee proactivity, the company moved to a system where each department can decide its own sales and profit targets, sales strategies, operational improvements, and recruitment and training plans. Initially, the accuracy of the plans coming from the departments was low, and sometimes unrealistic goals were set, but Mr. Sumida intentionally did not intervene. As employees experienced failure, they increased their awareness of 'deciding things for themselves'.
Mikimi Nakamura, who is in charge of the Second Sales Division, says she was confused when the president first instructed her to create a medium-term management plan, thinking, "What should I do?" She recalls, "The team at the time was centered on individual play, and there was no sense of unity."
In the first term of the initiative, perhaps because it was a period of strong business performance, they set big goals that were like castles in the air. However, the results fell far short.
"I thought desperately about how to grow the department with achievable goals. New members were joining, and I couldn't see a future with a collection of individual shops like before. I thought it would be more reliable to create the plan itself by incorporating specific information from the members, not just me, so I asked for everyone's opinions." (Ms. Nakamura)
She exchanged opinions with the sales team members to improve the accuracy of the plan and worked out specific measures to achieve the goals. Through this repetition, the Second Sales Division steadily produced results and transformed into an organization where members could feel their own growth.
Employees also set their own personal goals. The company does not impose its own agenda.
It is not just departmental plans that prioritize autonomy. The company's evaluation system focuses on individual growth rather than just sales figures. Based on the code of conduct, employees are evaluated on how much they have grown relative to the goals they set for themselves.The evaluation axis is based not just on the size of the numbers, but on how proactively the employees acted.
"First, I have them think about their personal goals, and then in our meetings, I help them adjust their course—sometimes pushing them to try a little harder, or in some cases, having them take a more realistic look at things. Goals are ultimately for individual growth and contributing to the customer. Therefore, we do not impose the company's convenience on them." (Mr. Sumida)
Ryosuke Tsushima, a supervisor in the Second Sales Department, says, "At first, I didn't know how to set goals, but by learning from my seniors, I became able to think for myself.Because these are goals I decided on myself, I can commit to them seriously."
"My supervisor, Mr. Nakamura, has entrusted me with several themes regarding team operations in addition to my own goals. For example, recently, I thought about acquiring new projects at exhibitions and the necessary personnel additions for that. Regarding recruitment, I have expressed my opinion that 'we are still short on staff' based on our actual work content." (Mr. Tsushima)
In this way, they create departmental recruitment plans and proceed with actual recruitment activities while obtaining the cooperation of the general affairs department. It is truly the management of the organization itself.
"Deciding who to hire is ultimately up to the front lines. I participate in the second round of interviews, but I never make hiring decisions based on presidential authority. I trust the front lines to decide 'who to work with' and leave it to them." (Mr. Sumida)
However, with bottom-up plan formulation, there must be issues with accuracy and speed depending on individual perceptions and knowledge. Doesn't this also require a significant amount of effort in communication?
"The key is information sharing. At our company, we use internal social media to share various information, and the general affairs department has created a system where work cannot run smoothly without looking at this platform. 'Information sharing' has also become part of our code of conduct, and in each department, supervisors encourage staff to post about their work achievements and share knowledge." (Mr. Sumida)
Toward a culture where positive proposals are submitted one after another
At Sumida Byora Seisakusho, the management plans put forward by each department are integrated and compiled into a company-wide management plan. Within the departments, it is said that because the plans are decided by the members themselves, their sense of responsibility for achieving them increases. What kind of changes have the branch managers who bear that responsibility experienced?
Changes in managers who were once sales-supremacists
The company also gives the front lines discretion in its sales policy. Shigeki Jono, the manager of the Yamagata Sales Office, says, "Even though we are a screw trading company, we sometimes handle wood and styrofoam depending on customer requests. Such flexible responses are only possible because the front lines have the authority."
Mr. Jono says that he used to impose his own policies top-down and make his members follow them. However, his current style is very different; he now tells his members only the goal first and actively seeks their opinions. Because not only the planning but also the execution is left to the front lines,each individual must think and act freely.
Behind the freedom to decide and execute plans and goals themselves, isn't there also significant pressure?
"Of course, I feel a great sense of responsibility and pressure. In my case, when I feel pressure, I make sure to show my weaknesses to my members and consult with them. Sometimes I even take time to have all the branch members listen to my worries. When I do that, diverse ideas gather, and there is no need to hold everything in and look grumpy. From the members' perspective, I think there is also a great sense of security in being able to see what their supervisor is thinking." (Mr. Jono)
First, listen to the members' opinions. Even if the direction is different from your own, try adopting it for a while. Mr. Jono himself says he is surprised by such changes.
"I think I have changed tremendously. Before, I was like a wild horse, thinking about 'outdoing my boss' and running desperately for sales while ignoring human relationships. But when you do that, you end up with no one around you to rely on. Before I knew it, I was in a situation where no one would support me. Because I keenly realized that teamwork is truly important, I resonated with the new policy put forward by the president." (Mr. Seino)
More people have come to take pride in their workplace
With the organization becoming one where employees think and act for themselves, the burden on management and supervisors has also been significantly reduced. Mr. Sumida says, "I have been able to focus on external communications and interviews with employees," and Mr. Nakamura says with a smile, "I have been able to let go of some of my work to a certain extent, and even when I took a one-month childcare leave, operations proceeded without any delays."
Recently, Mr. Sumida says he has been increasingly surprised and impressed by proposals from members.
"In the case of the Second Sales Division, proposals for regional contributions started coming from the members. Our bases in Hokkaido and the Tohoku region have long-standing relationships with local farmers. A proposal was raised to donate the agricultural products we received through those relationships to child-related facilities such as local nursery schools. There were also other ideas, such as 'We want to participate in the local festival and hold an imoni (taro stew) party!'" (Mr. Sumida)
Facing the significance of their work and making positive proposals. Such figures can now be seen throughout the company, andnow, proposals for operational improvements are also submitted on a daily basis.
"Compared to 2008, I feel that the faces of the people working here have clearly changed. I think more people have come to take pride in their workplace. I hope that all our employees will continue to do work that they can be proud of to their families." (Mr. Sumida)
Carefully listening to each individual's opinions and trusting them with expectations. Instead of top-down, entrusting things to the spontaneous actions of employees, and consequently producing great results. Sumida Byora Seisakusho, which has realized such a cycle, will likely continue to respond flexibly to changes in society.
WRITING: Shinsuke Tada
* All information on this page is current as of the time of the awards ceremony
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