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I see the bright prospects for the management environment of Japanese
companies in 2007. I feel the economic environment in 2007 will enable
Japanese companies to adopt a positive management stance to move forward.
For the past few years, Japanese economy has been recovering from a major
depression so called "The lost decade" which lasted for more than 10 years.
It is a result of the companies' great effort to strengthen their organizational
constitution, especially by the development of new attractive products,
technologies and services.
In 2007, I believe that Japanese economy will finally see the spring light
at the end of the dark tunnel and will switch to the growing stage; Export
and corporate capital expenditure will be brisk, which will create employment
and recover individual incomes. |
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It seems Japanese companies have become conservative over the long harsh
winter. They have been concentrating on cutting labor and investment cost
to preserve the company. However, Japanese economy has now seen a radical
improvement and it is time for them to start active investment to increase
global competitiveness. From such point of view, Japanese companies are
mainly facing the following issues: |
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| Japanese companies' traditional manufacturing strength such as
"inheritance of technical capabilities and production skills" and
"high quality and safety assurance" has been rather deteriorated,
despite they are still at the world top level. It is time for them
to re-consider, re-fortify and re-systematize their traditional
strength by "Kaizen activities (continuous improvement activities
across the organization)". |
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| Japanese companies must conduct "Innovation management" which
is management to aim for the continuous production of unique high-value
added technologies, products and services. And based on it, management
and research & development function of overseas location should
be entrusted to local staff as much as possible to develop and manufacture
products that fit the demand of each country. |
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| Japanese companies need to deve lop employees who can "act" and
"grow through action". Who has insight based on knowledge, and can
make decision and take necessary action to achieve the important
goals for the company is highly required. |
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| "Corporate Social Responsibility" is becoming increasingly important.
"Corporate governance" meaning that the company possesses and actually
practices good corporate philosophy and "Compliance" meaning that
the company observes laws and rules are highly expected. "Global
environmental protection" is also imperative as well as taking a
role in the socially important organization such as NPOs. |
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| JMA proposes the nationwide "Kaizen activities (continuous improvement
activities across the organization) reinforcement month" and organizes
seminars to improve capabilities of firing line supervisors. JMA
also holds conferences and forums for the exchange of firing line
supervisors and "Kaizen symposium" in Yokohama. |
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Despite that the top management has been well adapted to the new
aggressive age, motivation of Japanese middle management still does
not look positive enough. They tend to hesitate to challenge new
tasks given by the top management. However, middle management should
play a core role as a nodal point of the organization, understanding
the top management's will, communicate it to their followers correctly
and put it in practice with leadership.
I believe it is JMA's responsibility to enhance the capabilities
of middle management to bring out the potential power of the organization.
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| JMA is concentrating on "Whole Business Process Innovation" by
fostering research & development project leaders. It is not only
management innovation for the new product development JMA is supporting,
but the whole serial processes of "manufacturing"; from designing
to after-service. One of JMA's activities to support it is to organize
the forum called "Japan CTO Forum" which is the workshop of the
CTOs of the Japanese representative companies. |
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Motivation for work and new ideas come from fulfilling and comfortable
life. JMA will continue to propose Japanese companies to pay special
attention to the balance between work and life.
As a part of it, utilization of female, elderly and non-permanent
employees is becoming increasingly important to solve lack of human
resources due to the aging population and low birthrate. Compared
to the global level, there is still a big room for Japanese companies
to provide more opportunities for female employees to perform their
abilities and promote. We could also enhance re-employment system
and use of non-permanent employees.
There has also been much discussion about the employment of people
from overseas. I believe it is necessary for Japanese companies
to start considering the employment of more foreigners especially
with expertise.
Regardless of the employment system, it is imperative for the companies
to bring out each employee's ability. |
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| For the countermeasures against global warming, JMA is spreading
the environmental technology by organizing symposiums and conferences
about Eco-management and Eco-manufacturing, as well as spreading
it as Japanese companies' management structure through ISO 14001.
In addition to such activities, JMA has started research & study
for CO2 measurement technology in preparation for CO2 trading. JMA
has also started exchanging such information with EU countries.
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Even though service industry plays an important role, strength of Japanese
industry is in manufacturing. The top issue of Japan in 2007 is the
reinforcement of manufacturing capabilities and human resources development.
In 2007, JMA will continue to concentrate on research, study and diffusion
of how to bring out the latent potential that a human has. It is said
that our latent potential is about 7 times more than our present ability.
If we could bring out our latent potential, astonishing result could
be achieved. I believe that the place to bring out this latent potential
is the working environment where each person has ambition and dream,
and can set a high goal that his/her boss positively supports. It is
the challenge of resource-less Japan to create such working environment.
More and more Japanese companies will expand their business overseas.
JMA will actively support such Japanese companies as well we local companies
that support Japanese corporations. In 2007, JMA will contribute to
the local companies and society more actively.
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