Connecting the 5 Elements of Keishin to Business Planning | Concepts for Numerical Targets and Monthly Operations

In this series, we have organized how to read Keishin P-points from a president's perspective and how to create a one-year plan with an eye on W-point revisions.

By now, you should be able to see the perspective of "using Keishin evaluation axes for management decisions."

As a final touch, we will organize the operation of connecting numerical targets in business plans with the 5 elements of Keishin in a single line.

This is the final installment of the series.

✅ Conclusion: For companies undergoing Keishin, managing the 5 elements in connection with business plans makes it easier to link daily management decisions with Keishin countermeasures.

📌 ① From "Keishin is only for the application year" to "within the flow of management"

For many small and medium-sized construction companies, Keishin is an event where activities are concentrated in the application year.

However, this leads to:
・Efforts becoming skewed around the application year
・Preparation for W-point revisions falling behind
・Keishin scores appearing as a "result" that cannot be actively influenced

By linking the 5 elements of Keishin with business plans, you can: ・Incorporate a Keishin perspective into progress checks of business plans ・Drive medium-term plans for W and Z points ・Make responses during the application year "business as usual"

What you should be conscious of every month is sales, profit, human resources, and finance. The accumulation of these will form the results that lead to Keishin.

📌 ② Linking business plan numerical targets with the 5 Keishin elements

When creating a plan for the next term, set targets in connection with the 5 Keishin elements.

【Business Plan Items】 ↔ 【Keishin Elements】
・Annual Sales Target ↔ X1 (Completed Construction Work)
・Profit Target/Accumulation of Equity ↔ X2 (Equity Amount/Profit Amount)
・Improvement of Financial Structure (Equity Ratio, etc.) ↔ Y (Management Situation)
・Prime Contractor Conversion Ratio/Engineer Plan ↔ Z (Technical Capability)
・Social Contribution Initiatives, etc. ↔ W (Sociality, etc.)

【Example: Format for a 1-page A4 plan for the next term】
・Annual Sales: XX billion yen (Completed Construction Work: XX billion yen)
・Profit: XX0,000 yen
・Accumulate Equity to: XX0,000 yen
・Train: X Level-1 Engineers
・Kentaikyo Participation Rate: 100% (Procedure completed)

The president does not need to manage the Keishin "score" itself. If you manage actual management figures such as completed construction work, profit, equity, and the number of engineers as targets, the scores will follow as a result.

Make it so that the business plan and Keishin are talking about the same "numbers" on a single sheet of paper.

📌 ③ Incorporating a Keishin perspective into monthly management meetings

At monthly management meetings, look at the numbers across three axes.

【Management Numbers】
・Orders, Profit, Funds

【Keishin Perspective Numbers】
・Forecast vs. Actual of Completed Construction Work (leads to X1)
・Accumulation of Equity and Profit (leads to X2)
・Progress in Engineer Training and Prime Contractor Conversion (leads to Z)

[Progress of Initiatives]
・Completion rate of procedures for W-point items
・Scheduled meetings with the person in charge of Keishin

By looking at these three on a monthly basis, you will be in a state where you can see 'how far the preparation for Keishin has progressed' every month.

📌 ④ Mid-term management of Keishin using an annual calendar

To change Keishin from a 'once-a-year event' to a 'milestone in your mid-term plan,' manage it using an annual calendar.

[Example of an annual calendar]
・April: Start of management plan (including Keishin-related goals)
・July: First-half review (confirmation of interim progress for Keishin)
・October: Second-half plan adjustment (final adjustment period for Keishin)
・January: Preparation for application (document preparation, meetings with experts)
・March: Application month (or procedures at the beginning of the term)

Although the timing varies depending on the company's fiscal year and application period, it is important that 'Keishin is incorporated into the annual management cycle.'

📌 ⑤ Feedback loop from Keishin to management

Once the Keishin results are out, provide feedback to the management plan.

[Feedback flow]
・Keishin results (P-point and 5-element scores) are released
・Confirm discrepancies with each item in the management plan
・Organize the causes of discrepancies (which initiatives were effective and which were not)
・Reflect in the next term's plan

If you run this loop every year, your company will move in the same direction for both management and Keishin.

Conversely, if the loop does not run, Keishin will end with just 'results being released' without being reflected in management decisions.

📌 ⑥ As a result of improving management, Keishin evaluations also increase

What I want to convey at the end of this series.

Keishin is one yardstick for confirming a company's management status from the outside.

As I have repeated throughout this series, raising your Keishin score itself is not the goal.

Order acceptance decisions that leave a profit, management meetings where you can read the numbers, sharing numbers that involve employees, and developing engineers and building the organization.

As a result of improving management, Keishin evaluations also increase.

It is important not to think of the management plan and Keishin separately, but to grasp them as a single flow.

📌 Summary

• Incorporate Keishin from an 'application year event' into the 'flow of management'

• Link numerical targets in management planning with the 5 elements of Keishin (Profit and Equity are X2, Financial Health is Y)

• Manage targets using actual management figures (completed construction volume, profit, equity, number of engineers) rather than scores

• Incorporate Keishin-perspective figures into monthly management meetings

• Manage Keishin over the medium term using an annual calendar

• Create a loop that feeds Keishin results back into management planning

• As a result of improving management, Keishin evaluations will also increase

Presidents who can connect the 5 elements of Keishin with their management plans will grow their companies with a medium-term perspective. As a conclusion to this series, please try incorporating this into your next fiscal year's plan.

📌 Next Preview

Next time, we will organize "Why companies with high Keishin scores cannot retain profit | The gap between evaluation axes and profitability management". We will organize the structural causes and countermeasures for cases where companies with high Keishin P-scores are actually failing to retain profit.

* If you would like to "design the integration of Keishin and management planning together," please consult us here. We will work with you to organize everything from linking the 5 elements with management planning to monthly operations and annual calendar design.