When it comes to enter into the new business, two extreme cases can be analyzed.
Eccentric Co, (Anonymous ), originally started as a company dealing with pachinko, Japanese slot machine business, during the inbound boom late 2010s’, started hotel business. Their hotel chain called Ecc hotel had developed in a short term to the nation wide hotel chain. Since the COVID-19 pandemic, Ecc had been underperforming as their main target had been inbound tourists.
On the other hand, KDDI, which is now one of the top telecommunication companies and was started by Kyocera in late 80’s, even though their start up environments were unfavorable to them, well survived and has grown to several trillion JPY sales company in Japan.
Comparing those two companies, I would like to highlight the following three as the crucial reason why the new business fails.
1 How supreme and sheer the founder’s motivation is
2 Where does the fund come from? Not debt but equity
3 HR training associated with business growth
3 HR training associated with business growth
I checked the internet Ecc hotel reputation among hotel staff. It seems that employees did not receive enough benefits not only in basic allowances but also in bonuses.
I found the impression ” Managements are very demanding even though they are not familiar with the hotel industry …”.
On the other hand, Inamori has developed the trust with Kyocera’s employees.
“If a full-time employee and a temporary worker are doing the same job in the same workplace, there is a possibility that their mindset may not be harmonized. In such a workplace, I don’t believe in achieving an ideal operation. If Japanese younger generation doesn’t need lifetime employment anymore. They work when they want to work, they don’t work when they don’t. Instead, we get paid when the company needs a workforce. Companies can use them and they are happy to be unsecured if they secure their freedom in work. ”
If you choose such a flexible employment, lifetime employment may disappear. However, in Japanese society where humanity values very much, I think that neither managers nor employees can be so flexible. ”
The company exists to fulfill employees both mentally and materially.
Business operation has to be conducted in family -like atmosphere
Both management and staff look in the same direction.
The Kyocera Philosophy has above words.
The president will work for me seriously, so I think I’ll do my best and follow him for the rest of my life.
Probably, Kyocera staff thought like that.
Mr. Inamori also encouraged Seiwajuku members, most of them are the president of small- middle size companies, “You, guys should attract your staff with your charismatic leadership skills.”
Attraction should not be the one direction, the first direction should always come from Mr. Inamori. He loves each of staffs very much as if he were the father and cares for them. Therefore, staff started being attracted by Mr. Inamori. Otherwise, it is difficult to train people without any skills and experience to lead a group which deals with a new business.
To sum up, the fundamental reasons why the new business fails are as follows;
Among those reasons, No 2 is the initial investment and the finance, or fund, where the money comes from, two of the top three management components: material and money. No 3 is human resource management. However, the top priority is No 1, how supreme and pure motivation can be maintained, is the most important.
1 How supreme and sheer the founder’s motivation is
2 Where does the fund come from? Not debt but equity
3 HR training associated with business growth
I demonstrated the scientific reason why the top’s mindset is important. This is simply because of subliminal mind theory. The subliminal mind, which is linked with your supreme mission or pure mindset, can only be transmitted to your counterparts, through our behaviors. Therefore, Mr. Inamori reiterated that we, top management should have a pure mind within our internal personality to always get us for the unexpected opportunities.
Further queries or doubts, please email to ytomizuka@abrilsjp.com
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