Corporate Philosophy: Shared Organizational Values #194

■ Corporate philosophy is not just a 'decoration,' but the axis of decision-making

There is a limit to what one person can do alone.
That is precisely why we build organizations with people who share the same purpose.

A company is a typical example of this.
Its role is to create value by utilizing management resources (people, goods, money, knowledge, and information) and to continuously deliver that value to society.

What binds management together?
That is the 'corporate philosophy.'

Corporate philosophy is the foundation of theory within a company.
Theory is not merely a set of established rules.
In a company, it serves as the axis and standard for all decision-making.

What happens if this is ambiguous?
• Judgments vary from person to person
• Actions lose consistency
• Neither evaluation nor verification is possible

In an era of rapid change, this is fatal.

■ Philosophy is tested precisely during 'emergencies'

I realized the true importance of corporate philosophy
during the Great East Japan Earthquake.

Amidst unprecedented chaos, one action left a strong impression on me.

Cast members at a certain theme park provided snacks and other merchandise to visitors who were evacuating without hesitation.

Also, it is said that delivery staff for a bread manufacturer distributed bread from their trucks to people who were stranded in a parking lot.

Normally, both are items for sale.
Distributing them based on personal judgment is not an easy thing to do.

Even so, why were they able to act without hesitation?

It is because the philosophy of 'prioritizing customers and society' was already shared within the organization.

In normal times, you can get by without a philosophy.

However, in unforeseen circumstances, it is different.
Manuals do not function, and instructions from superiors do not reach you.

At that moment, the philosophy is the last thing you can rely on.

I was deeply shocked by this event.
And I decided to create a corporate philosophy that was truly meaningful, not just one in name only.

■ The reason I dare to use VMV instead of MVV

Corporate philosophy is generally organized as
MVV (Mission / Vision / Value).
• Mission: Purpose in society
• Vision: The future you want to realize
• Value: Behavioral guidelines and values

However, I intentionally use the order VMV.

First, draw the future you want to realize (Vision).
Next, define the mission to realize that future (Mission).
Then, clarify the values that support it (Value).

This is because if people cannot empathize with the vision, they will not move.
And it is the values that continue to support those actions.

Because there are strong values, you can make decisions without wavering even when you are lost.

I believe that the accumulation of this leads to the achievement of the mission, and as a result, the realization of the vision.

■ Corporate philosophy has its origins in the SDGs

I established our current corporate philosophy in 2016.
That is because I was inspired by the SDGs adopted at the UN General Assembly the previous year.

Vision
We will enhance our significance in society and aim to be a 'sustainable company'

Mission
We propose the construction of reliable lifelines through the development and supply of piping that considers not only the present but also the future

Value
We will work with 'sincerity' to fulfill our mission toward the realization of our vision

Slogan
Let's challenge change with wisdom and courage!

At that time, SDGs and sustainability were not yet widely recognized, and our employees did not understand what they were.

■ Penetration and dissemination of corporate philosophy

There is no point in creating a corporate philosophy.
If it is not shared, it is the same as not existing.

That is why initiatives to permeate the philosophy within the company are necessary.

This is what is known asinner branding (internal branding).

Also, a company exists within society.
If it cannot demonstrate value and significance, it cannot continue to exist.

That is why corporate philosophy must also be communicated outside the company.
As a result, this leads to understanding and trust from customers, business partners, shareholders, financial institutions, and the local community.
In other words, stakeholders.

■ Use 'milestones' to permeate it

In psychology, there is a concept called the "fresh start effect."

People find it easier to change their behavior at the start of a new period.

New Year's, the new fiscal year, the start of a term, the beginning of the month —
Sharing your philosophy at these times significantly increases the effectiveness of its integration.

At our company, we intentionally create opportunities to encounter our management philosophy in daily life so that it does not become a mere formality.

For example:
・Creating opportunities to reflect on the philosophy at key milestones
・Returning to the philosophy during decision-making processes
・Incorporating the philosophy into evaluation criteria
・Holding study sessions on the management philosophy to share ideas

We are thorough in treating it as something to be "put to use" in these ways.

Additionally, we are currently considering establishing a "(tentative name) Management Philosophy Anniversary" on September 25th, the day the SDGs were adopted at the UN General Assembly in New York in 2015.

■ Thoughts as a manager

Ideally, employees should join the company after empathizing with its management philosophy.
However, in reality, that is not often the case.

That is why it is important how you share and integrate it after they join.

And that is not just the company's responsibility.
It also concerns every individual who works there.

Can you explain your company's management philosophy in your own words?
And when you are in doubt, what criteria do you use to make decisions?

The answer to that will determine your future actions.

※ This article is written for all employees working in companies.
It is content I especially want the members working at my own company to read.