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Review

The bold "professional management theory" by Keidanren Chairman and CEO of Industrial Growth Platform, Inc. has appeared. How to choose a president. This book is a masterpiece that makes us recognize its importance and difficulty. It's clear what is required of top executives in this era. He is a person who can make decisive decisions even in difficult situations and can demonstrate leadership.

In Japan, the work history of "sales-oriented" and "boiler-oriented" looks beautiful at first glance. However, it is insufficient from the perspective of corporate management, and it is important to gain broader experience. The authors' claim that it is important to experience Shuraba, especially when young, makes a big nod.

Today's Japan, which has become a mature nation, is not an environment where it can benefit from economic growth without doing anything. Every company needs to use their wisdom and ingenuity to win the competition. However, until now, it has not been uncommon in Japan to select presidents and officers based on the same progressive personnel affairs and seniority system. In the future, it can be said that a company cannot survive unless it selects the top company that has the ability and can truly demonstrate its determination.

In addition, whether or not corporate governance is being practiced is also an important factor. Once the choice of president is decided, it is natural that the way of human resource development and hiring will change. In this book, management is described as "severe intellectual martial arts." How do you find and nurture human resources who can withstand the rigors? Here are some tips for drawing up the management strategy of the Reiwa era.

The main points of this book

Point 1

The managers of the coming era must be sensitive to change, have a sense of creating change by themselves, and be able to demonstrate their determination.

Point 2

In the future, aggressive governance will be required to achieve sustainable growth of the company.

Point 3

Candidates for the president need to think from a management perspective as young as possible and cultivate both financial and business perspectives.

Point 4

Whether or not you can enjoy the rigorous intellectual martial arts of management and find it worthwhile is the most important quality as a manager.

The definition of president changes in an era of change

There is an urgent need to respond to structural changes in the industry

In 2018, the Japan Business Federation (Keidanren) announced the proposal "Society 5.0" for the next generation of Japanese economy and society. From now on, digital transformation and IT will become more and more popular, and the structure of all industries will change drastically. There will be dramatic changes in manufacturing, services, logistics, etc. that are not extensions of the past. In such an era, it can be said that a manager must be a person who is sensitive to change and has a sense of creating change by himself.

How have the qualities required of top management changed?

Today, top management is being questioned more than ever. The key is the judgment of the top of the company, and the management decision itself greatly influences the direction of the company.

For example, in the electrical industry, large companies with similar business formats used to compete side by side. However, after the Showa and Heisei eras, such a landscape has changed completely. It is no longer the time to sell because you made good things. There is a need for leaders who can determine how to survive.

Now that the market is globalizing, managers need the opportunity to train in a global environment, but in Japan there are very few such opportunities. It is difficult to improve your management sense just by gaining experience in operations. A good section chief becomes a good manager, becomes a good director, and goes on to become the president. Such a conventional flow no longer works. When asked if someone who has done the same job for 20 years can think of the future of the venture, it's tough. From a young age, it is important to train as a profession so that you can have a sense of overall management.

The true ability of the leader is questioned at the time of Shuraba

Mr. Tomiyama, who was at the Industrial Revitalization Corporation of Japan during the bursting of the bubble economy, said he had seen many business owners who could not decide for themselves even when the company was on the verge of living or dying. Not all members of a company can be happy when making bold, transformative decisions. In many cases, it is inevitable that light and shade will be born.

Meanwhile, it is only a tragedy for the company if the manager or leader is a person who is not prepared to take on all the reactions to his decision. It is rather unfortunate to pull the structurally weakening non-core business to the brink of smashing for fear of negative repercussions. That is why you have to be a leader who can make his own decisions. Whether or not you can make a decision may or may not be appropriate, but if you recognize that the decision is correct, you should not hesitate.

In the age of digital transformation, the period of severe market conditions is very short. In some cases, a general electronics manufacturer in Kansai, which made the highest profit in the LCD business, suddenly fell into a business crisis a few years later. Therefore, it is essential to make a quick decision.

So what should we do to cultivate such management power and leadership? The important thing is to have a tough experience, such as dealing with a situation where employees cannot pay their salaries at overseas bases. It makes me angry when I gain experience in dealing with things that cannot be calculated. In a sense, it is necessary to provide elite education by giving various missions to human resources who are suitable for the job of managers.

[Must read point!] Governance reform essential for the revival of Japanese companies

Prescription to regain "earning power"

During the so-called "lost 20 years", Japanese companies have lost their presence in the world. The cause is not only macroeconomic factors but also the loss of "earning power" at the corporate level. The biggest problem at the micro level is Japanese-style management without governance, that is, the superstructure of the company. In order to revitalize Japan again, it is essential to practice corporate governance management. If governance changes, so will the Japanese economy as a whole.

It is important for the board to discuss the strategy

The discussion of corporate governance must be grasped in the context of management in the "Society 5.0" era. In other words, it is necessary to discuss from the perspective of strategicity. Governance is not about reviewing reports of what has been done, coming up from below. Governance in the future is to create a mechanism for discussing strategies such as where to direct the power of the company. Aggressive governance is required that not only corrects company fraud but also realizes sustainable growth of the company.

With that in mind, it is the role of the board to select the CEO who will steer the company. The worse the company, the more often the successor recommended by its predecessor is ineligible. If there is no mechanism for third-party evaluation of the successor that the president thinks is "this person," there is a risk of making a big mistake. "Top personnel are the exclusive matters of the president and chairman" is no longer valid. Nothing is more difficult and important than top HR.

What are the requirements for a candidate for president?

So how do you create a candidate for president? Based on the idea that a manager is one profession, 50 candidates should be created from a very young age, and 100 candidates should be created. I will give various jobs in it and leave the people who cleared it.

An important condition for a candidate for president is the period of thinking from a management perspective. The operational perspective alone is not enough to successfully develop a business model.

Furthermore, it is important to learn the perspectives of both the financial side and the business side and how to create a network. It is also effective to have the presidential candidate work overseas twice. The first time he works under the boss of the country, and the second time the candidate himself takes the lead in the field. It is desirable to experience these two. If you give a strict task or make a personnel change, you will be able to misunderstand the person's face and remarks.

How to hire a changing company

Collective recruitment that feels strange from a global perspective

Mr. Nakanishi says that global companies have no choice but to hire globally, and there is a sense of discomfort in the collective hiring of new graduates by Japanese companies.

The batch recruitment of new graduates was effective during the high-growth period of the processing trade nation. Due to the shortage of manpower in Japan at that time, mass recruitment was being carried out. This method was also compatible with seniority and collaborative work in factories. However, due to changes in the industrial structure and social structure, batch recruitment of new graduates has become unfit for the times.

If you are doing business globally, you must naturally think about how to utilize overseas human resources. Unlike Japan, it is difficult to hire overseas human resources all at once. There is a labor market as a market, and we enter there. Students are required to have that kind of awareness, and the hiring side also needs to think about ways to secure good human resources in the market.

Double tracking of adoption method is a natural flow

Free adoption throughout the year is common in global companies. Hitachi has released the desired human resources. In addition to batch hiring, we have set up a mechanism to put the application into the hiring process.

On the other hand, of course, there are companies and students who are better off following the trend of collective hiring. In such a case, it would be better to adopt a batch recruitment system. From this, it can be said that the double tracking of the adoption method is a natural flow.

To compete with overseas human resources

There are human resources with high potential in Japan as well. There are quite a few people who are motivated and want to pursue their own career. Rather, young people are more likely to work more than they think.

The mobilization of human resources has become common, such as going from a large company to a venture company or from a venture company to a large company. For example, there are an increasing number of cases where a person who has retired is rehired by an old nest company. In addition, managers in their 30s and 40s have also appeared. It is important to develop human resources who can think about what to do with the organization and the market as well as their own career development from a high perspective.

The world's elite with a managerial mindset

Make good use of given opportunities

Whether or not you have a sense of management depends greatly on whether or not you have a successful experience of trying something on your own. This is because a multifaceted perspective can be obtained at such times. On the contrary, it is difficult for a person who has just worked hard in a solid work to have such a viewpoint.

Also, when you are placed in a new position, how much you can expand your network will determine whether or not your management mind will grow. The question is whether to create these opportunities yourself and make good use of them.

The world's elite basically think of themselves as the owner of their lives. Fighting in the world in the age of the digital revolution means meeting people with that feeling.

Flexibility to accommodate diversity

When you try to work globally, you are faced with the diversity of people. On the contrary, the question is whether or not there is flexibility to enjoy the variety. In this era, management of foreigners is inevitable. It's no good while the issue is whether it's a foreigner or a Japanese. It must be natural that the best people, regardless of nationality, culture, or race, become the top.

Whether you can enjoy the job of management

The authors are of the opinion that those who do not find the job of management interesting should not become president. The president has to work as a hobby. Unless you find it interesting that the results of the work you steer are clear, it will not be suitable for business owners.

There is a partner in the business, and it is a game with that partner. Management is an intellectual martial art, and when you win, it's interesting, and sometimes you lose. If a person who dislikes such things becomes the president, he will not be able to play in the game. Draws and postponements are typical of the worst managers. Whether you can enjoy the rigorous intellectual competition of management and find something worthwhile. This is the most important quality as a president.

Recommendation of reading

This book also includes an interview with the former top executive, "In the case of our company, the change of president." Mizuho Financial Group, Konica Minolta, and Asahi Group Holdings will give us many suggestions regarding the selection and training of top management.

The abstracter strongly felt the significance of a book like this one being written at the beginning of Reiwa. Unless the top of the company is selected with a strong sense of purpose and correct insight, the Japanese economy will not be able to stand. The strong sense of crisis of such authors was transmitted.

Heisei was an era in which many companies, which had been widespread until then, fell into poor management and faced a crisis of survival. The reason is that many managers were unable to respond to change. Until now, there was a strong Japanese tendency that the senior president who chose himself could not be denied. Meanwhile, with the help of outside directors, it is probably the result of trial and error that companies have begun to writhe in the midst of unprecedented changes and have come to choose the top from the perspective of a third party. Reiwa sincerely hopes that it will be an era in which many managers selected with such a new sense will play an active role. Can Japanese companies regain their "earning power" under a strong leader? Why don't you read this book carefully and think about it in the future?

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