|
February, 2003（No.6）
|
 |
|
Thoughts on
Turning the Page
|
||||
 |
||||
|
||||
Our definition of efficiency is "the maximization of the potential and traits of all management resources, including people, materials, finances and information. We rank this definition of efficiency synonymous with corporate management innovation, and advocate the us of the JMA's mission statement as "a promoter of management innovation." I believe all issues concernin management innovation can be divided into two categories. The first category includes issues that are basic and unaffected by changing time, and relate to productivity and quality improvement. As for the second, they are expected to be time-specific. They are issues concerning innovations such as the development of new technologies, products, and business models. After these 60 years, JMA has now reached to a point of rebirth. The time has come to renew our thinking while maintaining the enthusiasm toward our activities that we have had ever since our founding. It also involves facing new issues, and contributing our full effort to revitalizing Japan as the world's premier industrial power. The following are the main fields that the JMA will commit itself to, as we celebrate our 60th anniversary. Top management innovation for competitive edge Change and competition are intensifying everywhere. In such business climate, the role of executives is becoming increasingly important, tasked with providing original management vision and creative decision-making. JMA will therefore take a multi-pronged approach to promote innovation and improve competency among top executives. This includes elevating the caliber of training, exploring issues such as appraisals and compensation for today's executives, enhancing corporate governance and improving risk management. Nurture highly creative, value-added management To pull ourselves out of Japan's longstanding economic lethargy, we must stimulate new demands by attaining a ceaseless cycle of developing new and attractive technologies, products, and business models. JMA will promote research projects on such management that helps to reinforce the power to develop new business, and will promulgate findings to the industry through presenting the research's outcome as a proposal. Develop key human resources for the global playing field Rapid globalization is creating a demand for a large number of individuals with global perspective and those who are highly capable in every sphere of business, from R&D to manufacturing and marketing. JMA will be involved in cultivating global business leaders with a high level of expertise and communication skills, both in language and culture.
|
|
Attitudes
of New Directors of
Japanese Companies Revealed |
||
|
||
|
2002 Survey Results Summary
|
||
|
||
Japanese companies continue to operate in a harsh business climate. Especially this year, never-ending large-scale corporate scandals have prompted calls for stronger corporate governance coupled with improved compliance. Every year since 1998, Japan Management Association (JMA) has surveyed attitudes among newly appointed directors of listed companies. The purpose is to reveal the personal thought of these new standard bearers, and to give an insight into their morale and attitude towards the management challenges that await them. This year's survey was again conducted in July. Valid responses were received from 301 of 1,046 new directors surveyed, yielding a response rate of 28.8 %. The average age of the respondents was 53.3. The following is a summary of the survey outcome.
|
||
|
||
| ●More positive feelings towards mergers and affiliations | ||
|
||
| ●General dissatisfaction with compensation | ||
| The survey asked the new directors to compare their compensation level with
their subjective market value. 31.9% found their salary reasonable, while 43.2%
expressed that they are being underpaid. A scant 2.3% felt they were overpaid.
This leads to the question of what they consider their market value to be. The
largest number of respondents (41.2%) valued themselves less than 20 million yen
annually (US$160,000 approximately). Together with the 36.5% who considered themselves
to be worth 20 to 30 million yen (US$160,000 to $250,000) -the second most popular
answer-, slightly less than 80% of all respondents believed that their value did
not exceed 30 million yen (US$250,000) per annum. Even the most ambitious segment
(a meager 0.7%) valued themselves between 50 to 70 million, US$410,000 to $570,000,
and none selected the highest bracket of over 70 million yen or more.
|
||
|
●Corporate scandals resulting from top
management's naivety
|
||
|
||
| It may however be too severe to attribute blame to the ethical standards
of employees, given that such scandals are often caused by problems at the lever
of the organization itself. We ventured to ask the new directors whether they sensed any possibility of such misdemeanor in their own company. 10.3% said they have no fears whatsoever, and 56.5% were not worried particularly. Combined, roughly 70% of the respondents expressed little or no worry, while 30.6% expressed a little worry, and 2.3% professed a their deep concern. From these numbers, it seems that these new directors are generally optimistic about their companies. However, sitting on the sidelines is not an adequate attitude for the board member in this era. We do hope that all the directors will accept such issues as their own challenge, and thus become strong advocates for corporate governance based on compliance. |
||
| ●Most admired companies remain unchanged | ||
|
Sony and Toyota Motor were pointed by 29.1% of the new directors as most admired
company. Sony is the impregnable first for these five years, but it was the very
first time for Sony to share the glory with any other company. Toyota was second
last year. Honda Motor came third with 8.4%, and the fourth was General Electric
(GE). with 5.9%. Last year, Honda was the fourth while GE got third place. The
top four companies have remained unchanged over the past three years. However,
Canon ranked 5th with 5.5% this year and was up sharply from the 14th last year. |
||
| ●Pessimistic view toward Japan's future | ||
|
|
Exam Results Announced for 2002 Diploma
in Company Direction
|
||||
|
|
||||
| Japan Management Association (JMA) launched Japan's first systematic training
and certification program for corporate executives, the JMA/IoD Diploma in Company
Direction in 2001, in affiliation with UK-based Institute of Directors (IoD).
The program's third and fourth certification examinations were administered in
2002 (April 23 and October 17), and nine successful delegates were awarded the
Diploma in Company Direction. Food, electrical power, and pharmaceutical companies
produced two recipients apiece, and one each hailed from companies in transportation,
chemicals, and services. The cumulative total of diploma holders now stands at
14. The Diploma in Company Direction Examination consists of five sections: 1) legal affairs and governance; 2) finance and accounting; 3) corporate management strategies; 4) HR and organization; and 5) marketing and management quality. Data shows that the applicants in 2002 were strongest in marketing and management quality, their weakest area being finance and accounting.
|
||||
|
Risk Management
Symposium
|
||||
|
||||
| The Managing Business Risk International Symposium was hosted by JMA in Tokyo
on September 25, 2002. More than 200 people involved in business risk and corporate
management gathered from around the world. Keynote presentations were given by Dr. Roger W. Raber, President & CEO of the National Association of Corporate Directors, Dr. Peter C. Young of the University of St. Thomas, and Mr. Andrew Keeling, Senior Business Risk Manager of Vodafone. Dr. Raber discussed standards of conduct for company directors through the prism of recent corporate misdemeanors including Enron and WorldCom, while Mr. Keeling delved into organizational structures and the role of management in global corporations. Enterprise Risk Management (ERM), as advocated by Professor Young, veers away from insurance-focused risk management, which has been the norm in the US, and instead favors risk management as the foundation for corporate governance, and corporate structure. Not surprisingly, ERM has picked up significant momentum since the coordinated terrorist attacks of September 11, 2001. "The key is the top executives," says Professor Young, "in this world where business trend is so turbulent with M&A, rapid growth and cultural frictions, catastrophe can be anywhere. Executives who are attentive to their risk, and constantly addressing them in a systematic way can only avoid the worst." He emphasizes the importance of clear definition of the roles of the CEO and board of directors, and he advocates promoting Chief Risk Officers (CRO) capable of ensuring a consistent systematic methodology. Professor Young noted that some 200 US companies are now working hard toward implementing risk management based on ERM concept. He attributes this to an increased desire among corporations to ferment a corporate culture that is comfortable with dealing with risk. |
||||
|
Exhibitions
Parade through Tokyo and Osaka
|
||||
|
||||
| JMA hosted a succession of large exhibitions in autumn 2002. LOGIS-TECH TOKYO
2002, which took place between October 15 and 19 at Makuhari Messe in Chiba, convened
for the fifth time and is now the largest logistics trade show in Asia. Working
around the theme "Creating a New Era through Logistics Technology-Toward
Prosperity for Society and Industry," 312 companies showed off cutting-edge
technologies, products, and services designed to make logistics more sophisticated
and efficient. Exhibitors occupied 1,487 booths and included 31 overseas companies
from 10 countries and one region in 35 booths. In total, visitors numbered 144,000. The LOGIS-TECH TOKYO 2002 venue was divided by product category into several zones. Included were the Storage Systems & Equipment, Sorting Systems & Equipment, Material Handling Systems & Equipment, Logistics Software & Information Systems, and Third-Party Logistics zones. In this way, visitors were able to tap into new logistics thinking from a variety of angles. In November, a series of shows in eastern and western Japan were held under the Asia Builders' Week 2002 banner, Japan's largest housing and construction trade event. Core exhibitions were the Japan Home Show 2002, Japan Covering Show 2002, Information Appliance Show, and Security Systems 2002, all of which took place concurrently at Tokyo Big Sight from November 19 to 22. With 671 exhibiting companies, the show boasted 1,035 booths and attracted exhibitors from 16 countries and two regions, including Japan, the US, Canada, Italy, China, Austria, Thailand, Spain, Finland, and Taiwan. Together, these shows attracted more than 100,000 visitors. Japan Home Show 2002 was further subdivided by theme into Building Materials, Housing Equipment and Systems, Remodeling, Kitchen Parts, Ecology, and Franchise zones in an effort to address visitor needs in the most detailed way possible. The Information Appliance Show and Security Systems 2002 were new additions to 2002 and promoted information appliances that create more pleasant and efficient living environments by harnessing the information and networking revolutions. Hardware and software related to home electronics and whiteware, information terminals, broadband and new businesses, wireless, and nursing care were on display.
|
||||
|
Two Major Food-Related Exhibitions,
FOODEX and HOTERES, Cometh! |
||||
|
||||
| JMA will hold two major food-related exhibitions, FOODEX JAPAN 2003 (The 28th
International Food & Beverage Exhibition) and HOTERES JAPAN 2003 (The 31st
International Hotel and Restaurant Show) during March 11-14, 2003. The shows will
take place in Chiba and Tokyo and are jointly sponsored by five trade associations
from the accommodations, food service, and tourism industries. FOODEX JAPAN 2003 will be held at Chiba's Makuhari Messe and will focus on the theme "Discovering the Joys of the World's Food Cultures." Approximately 2,300 exhibiting companies in 3,300 booths are expected to see some 90,000 visitors. For details, please visit http://www2.jma.or.jp/foodex/en/index.html.
|
|
JMA GROUP
|
|
| Japan Management Association（JMA） Activities: Survey, research and advisory services／Management education／ Technical conferences and conventions／Management system audit／Others 3-1-22 Shiba Koen, Minato-ku, Tokyo 1058522 Tel．+81-3-3434-1601 Fax．81-3-3434-1087 URL．http://www.jma.or.jp/indexeng.html |
| Japan Institute of Plant Maintenance （JIPM） Activities: Surveys, researches, consulting, training and publishing relating to TPM（Total Productive Maintenance）and plant maintenance 3-1-38 Shibakoen, Minato-ku, Tokyo 1050011 Tel．+81-3-3433-0351 Fax．+81-3-3433-8665 URL．http://www.jipm.or.jp/ |
| Japan Institute of Office Automation（JIOA） Activities: OA information exchanges／Surveys, researches and consulting／Others 3-1-22 Shiba Koen, Minato-ku, Tokyo 1050011 Tel．+81-3-3434-6677 Fax．+81-3-3459-1704 URL．http://www.jioa.or.jp/ |
| Japan Society for Technical Communication（JSTC） Activities: Undertaking technical document preparations／ English Technical Writing Test／Others 3-1-22 Shiba Koen, Minato-ku, Tokyo 1050011 Tel．+81-3-3434-2350 Fax．+81-3-3434-2486 URL．http://www.jstc.or.jp/ |
| JMA Consultants Inc.（JMAC） Activities: Management Consulting／Education and Seminars／Others 3-1-38 Shibakoen, Minato-ku, Tokyo 1058534 Tel．+81-3-3434-7331 Fax．+81-3-3434-6430 URL．http://www.jmac.co.jp/ |
| JMA Systems Corporation（JMAS） Activities: Specializing in computer software 3-1-22 Shiba Koen, Minato-ku, Tokyo 1050011 Tel．+81-3-3431-7401 Fax．+81-3-3431-7063 URL．http://www.jmas.co.jp/ |
| JMA Research Institute Inc.（JMAR） Activities: Surveys and researches／Information services／Others 3-1-22 Shiba Koen, Minato-ku, Tokyo 1050011 Tel．+81-3-3434-6282 Fax．+81-3-3578-7547 URL．http://www.jmar.co.jp/ |
| JMA Management Center Inc.（JMAM） Activities: Human Resources and Manpower Development 3-1-38 Shibakoen, Minato-ku, Tokyo 1058520 Tel．+81-3-3434-2777 Fax．+81-3-3434-6204 URL．http://www.jmam.co.jp/ |
|
|
Japan Management Association
3-1-22 Shiba Koen, Minato-ku, Tokyo 1058522 Tel.+81-3-3434-1601 Fax.+81-3-3434-1087 URL : http://www.jma.or.jp/indexeng.htm London Office 109 Parkshot House,5 Kew Road Richmond, Surry, TW9 2PR United Kingdom Tel. +44-20-8334-8922&8923 Fax. +44-20-8334-8145 |