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[Reading Record -162] The Companies I Want to Cherish Most in Japan

A book written 18 years ago

"The Companies I Want to Cherish Most in Japan"

The author, Koji Sakamoto, is a researcher specializing in small and medium-sized enterprise management. He has visited over 8,000 companies nationwide and has studied the common traits of "good companies" based on his many years of field research.

I personally respect him more as a "field worker" than as a researcher. This book is a compilation based on his many years of such research.

This book was published in 2008.

At that time in Japan, the Lehman Shock and the termination of temporary workers were social issues, and the active job opening ratio was below 1.0. In other words, it was an era where there were more people looking for work than there were jobs available.

On the other hand, today, labor shortages have become serious, and the active job opening ratio is above 1.0. The situation has changed significantly to an era where companies are looking for people, and with the spread of AI, the environment surrounding management is vastly different from 18 years ago.

Even if the times change, the excuses remain the same

In this book, the author introduces "five excuses" that managers often make.

The economy and policies are bad. The industry and business model are bad. The scale is small. The location is bad. Large companies and large stores are bad.



And instead of making such excuses, he argues that "the economy is not something given to you, but something you create with your own power."

In 2008, "the economy is bad" was the typical excuse. However, 18 years later, it has been replaced by phrases like "because of labor shortages" or "because it's the age of AI."

Although the background of the times has changed significantly, the structure of seeking reasons for management failure outside the company has not really changed much.

What is "true management"?

On the other hand, the author spends 10 pages explaining what "true management" is.

It is to fulfill the "mission and responsibility to five people". The author argues that actions that make the following five stakeholders happy are what constitute true management. And those five people are also prioritized.

  1. Employees and their families

  2. Employees of subcontractors and outsourced companies

  3. Customers

  4. Local community

  5. Shareholders

Shareholders are, of course, important. In the case of small and medium-sized enterprises, those shareholders might be the owners themselves. However, the idea is that the happiness of those shareholders is something that is born as a result of cherishing employees, customers, and the local community.

And in this book, companies that have adopted this "mission and responsibility to five groups of people" as their management philosophy and are putting it into practice are presented as real-life examples...

Verification after 18 years

I am a somewhat cynical person.

That is why I immediately think, 'I wonder what has become of the companies introduced in this book in 2008 now?'

The following five companies are introduced in this book as having adopted and practiced the "mission and responsibility to five groups of people" as their management philosophy. However, after looking into it a little, all five companies are still going strong even after 18 years, and naturally, they continue to be highly regarded as 'good companies.'

Nihon Rikagaku Industry: As a chalk manufacturer that actively promotes the employment of people with intellectual disabilities, it still receives visitors from all over the country.
Ina Food Industry: It continues to uphold 'annual ring management,' prioritizing the happiness of its employees.
Nakamura Brace: Headquartered in Oda City, Shimane Prefecture, it continues to manufacture prosthetic devices and silicone epitheses.
Ryogetsu: As a confectionery manufacturer representing Tokachi, Hokkaido, it continues to operate with deep roots in the region.
Sugiyama Fruit: It continues to operate as a fruit specialty store in Fuji City, Shizuoka Prefecture, and is also known for its product development utilizing fruit.

Of course, it is unlikely that all five companies have had smooth sailing. Even so, the fact that they have survived as 'good companies' for 18 years is significant.

Things that must not be changed

Society has changed significantly in the last 18 years.
The active job opening ratio has reversed, AI has become widespread, and the environment surrounding companies has changed drastically.

However, the five companies introduced in this book have continued to fulfill their "mission and responsibility to five groups of people" without being swayed by such changes in the times. That is precisely why they continue to exist as 'good companies' even 18 years later.

Even if the times change, the economy changes, or the business environment changes, there are things that must not be changed.

This book is one that teaches us that.
And it can be said that the 18 years that have passed prove that the author's argument was correct.

Reference Links

Amazon: The Company I Want to Cherish Most in Japan

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