The founder of Kyocera, Kazuo Inamori, developed a unique management system, known as “the Amoeba Management System” through real-life experience. It is a practical and universal business management method that provides companies with strong support in a turbulent business environment.( https://www.kccs.co.jp/en/business-domains/consulting/)
Kazuo Inamori’s idea of amoeba management is that “company management is not only some top management’s decision making process, but that all employees are involved.”
The organization is divided into small groups called amoeba, which are operated independently, and leaders are appointed to the small groups to manage the company in the form of joint management. By showing the results of each amoeba’s activities in an easy-to-understand manner, all employees, mainly leaders, will become aware of their own balance, demonstrate their abilities in their respective positions, and commit themselves to secure profits. In this way, Amoeba Management fosters leaders with a sense of management within the company, and at the same time, the system realizes “management by all staffs” in which all employees’ contribution is required.
While implementing this system, the following points I found to be my challenges.
１ Perfectionism
２ Double checking
3 Efficiency driven
４ Transparency
５ Simple system followed by quick feedbacks.
I would like to explain one by one as criticism to our company as well. The words by Mr. Inamori are quoted with “”.
１ Perfectionism
It aims to eliminate ambiguity and compromise and to conduct this perfectionism in t every working process. In the accounting department, there are many people who think that they can make a few mistakes, such as erasing numbers and replacing them with others when creating documents. However, whether it is an investment plan or profit management, if there is any mistake in the basic numbers, it can lead to misjudgment in management decisions. Therefore, it is essential to adhere to perfectionism in the administration and sales departments, especially in the accounting department. If the top management keeps in mind to stick to perfectionism and conduct this principle with utmost sincerity, he would immediately be able to figure out even tiny discrepancies among figures or numbers. Top management put highest priority on this perfectionism in the business administration.
I myself, by reflecting on my daily practice, I can’t say I have been well doing. I have to change the mindset and approach to deliver this.
1 Highly concentration and 2 Getting fond of each work process, those two are the keys for me to seek that perfectionism.
２ Double checking
“This means that all slip processing and deposit processing are done by multiple people.
The principle of double check is to make sure that the amount of money is strictly adhered to regardless of the amount. This is the iron rule. The most important is that we managements have compassion and consideration not to lead any staffs to make mistakes. That means the intention to prevent employees from committing crimes. Only if the management has such compassion for employees, the principle of double check will be shared and put into practice within the company. ”
I have been the top management and no full time employees so far.
Accounting numbers should be managed by myself.
However, this time, I am thinking of sharing with our tax advisors the status of work-in-process projects, the degree of completion of work, issuance of invoices, payment, etc. with the Excel spreadsheet to be shared. This is because I would like to introduce such a double check mechanism from the statis quo. Also, if such a mechanism is adopted, I think that the staff will come in smoothly in the future.
In addition, since our work involves real estate, the amount of compensation per case will be large, and it will be easier for potential staff to behave unethically.
As Mr. Inamori has repeatedly said, in order to practice amoeba management, we must thoroughly implement the philosophy. Again, real estate handles a lot of money. Therefore, people may get easily attracted with the so-called “-speculative profit-“, rather than prudent investment.
I think that the reason why big real estate companies do not work well not only in Japan but also overseas is that the philosophy part cannot be practiced. It’s easy to think that sales staff are very important to real estate companies. I have also heard that employees who close the deals are given a bonus of 10 times more than that of other staff. This is because the top management gives that sales guy reward based on the superficial figures. Under the Amoeba which is closely linked with Philosophy, that performing sales guy is rewarded with “gratitude” and “praise”. He never gets rewarded with numerical bonuses.
With a thorough philosophy, no matter how good he is in sales, the top management won’t overestimate him in terms of their performance. However, when society becomes unstable, as it is, and, for instance under a recession,, he would be more stressed not only in the company, but also with his families or friends.
Then, he might think that” I’m not evaluated even though I’m working so much” Then he may ask himself “Should I get paid more as I am the one who makes the money for this company? If you underestimate me, I think I am granted to take some portion of the company’s profit as a fair reward to me, as you wasted my resources.” This may lead the tragedy not only for him but also for the company. For that reason, I always thought that this double-check principle was effective.
Further queries or doubts, please email to ytomizuka@abrilsjp.com
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