As I mentioned in the last issue, ‘an organization’ itself is something like ‘a Buddha statue carved out of wood’, or just a mere ‘framework’. Therefore, what is important is how to pour blood into ‘a wooden Buddha statue’ and put a soul in it, and the decisive factor is ‘personnel affairs’.

In addition, revising an organization does not mean that all ‘talented people’ are replaced. It is also necessary to appoint or recruit outside personnel, but in most cases, a reorganization of current human resources is central. Therefore, it is essential for top management to clarify the goal and purpose of revision of an organization and personnel affairs associated with it. Otherwise, valuable revision of an organization is not effective and stays things like a change of pace. I think the biggest goal of revision of an organization and personnel affairs is ‘change in the way of thinking’ by employees. These are surely messages sent to employees by the president. Employees interpret variously from them.

A strong organization is, so to speak, not like ‘grains of rice’ before cooking which are all separate one by one, and it is a fusion like ‘rice cake’. Sharing one corporate philosophy and diversity is not contradictory. Diversity is a necessary element to realize shared philosophy more efficiently and effectively. And it is ridiculed that ‘an organization in the United States is based on the strategy, and an organization in Japan follows the fashion’, but in Japanese companies, doing what everyone else does and the principle of putting precedent first are still mainstream, because they are much safer. Concerning organizational structure, a clear business strategy of top management is essential.

No matter what form of organization is adopted, there is always a strong point and at the same time a weak point. In Japanese chess, there are various battle-formations, so to speak, form of organization. Each of these has its merits and demerits, and which one to choose depends on how to take the gauge of the situation such as whether ‘attacking aggressively’ or ‘strengthening the defense’. There is no organization of ‘sure victory’ nor ‘final’. And something like an organization or system causes deterioration over time or institutional fatigue, and if harmful effects are felt, it is better to take another look.

In addition, as for present organization, a weak point particularly tends to be looked toward. However, by revision of an organization this point can be improved, but everything does not work out in due course, and problems which are not supposed to be occur. Therefore, ‘talented people’ consisting of an organization have to be aware of a weak point or fault of each organization, and perform something extra of ‘watch, consideration and attention’, thinking how to aim for a thoroughly guarded and strong organization. In a baseball game, a good fielder has a lot of defensive range.

Recently, two major companies in logistic industry have undergone a contrasting organizational restructure, and become a popular topic of conversation. One of them has shifted from divisional system to holding company, and the other has thrown back to one company. I think that these are reorganization based on management strategy. One of them tries to adapt the moment and deal with the situation of a future environmental change both at home and abroad, and the other is going to specialize in specific business areas from diversifying line, and solidify the foundation by digging deeper into its occupation’.

And while I worked at the previous company, when I talked about forms of organization, what I always raised as slogan was a straight forward wording called ‘Aim for a “cheerful, pleasant, relaxed, and friendly organization”’. The executive has to leave difficult organization theory or vocabulary to scholars and critics, and it is important for him to speak clearly and tenaciously in order that employees make their sense.

(P.S.) The IMD, an influential business school in Switzerland, published World Competitiveness Ranking 2022 the other day. The target of this survey is 63 countries and areas, and it was added up based on statistical data of governments of various countries and the World Bank, and questionnaire survey of management and so forth.
According to it, Denmark took the first place for the first time, and European countries accounted for 6 of the top 10 countries, due to a high speed of restart of economic activities from coronavirus crisis. In case of Denmark, digitization of administration is progressing, and productivity and improvement of business efficiency are progressing compared with other countries. That is why Denmark was chosen as the top.
Among Asian countries, Singapore was the third (the fifth last year) and Hong Kong was the fifth (the seventh last year), and Taiwan went up to the seventh. On the other hand, Japan dropped 3 places and ranked 34 th place which is the lowest ever. It is pointed out that ‘there is poor government efficiency and the nation’s debt is over two times of GDP’.
Japanese still take part in fantasy called ‘a major economic power’. If it goes on like this, Japan will become ‘the boiling frog’. It is necessary to face series of severe international assessment, and advance ‘change in the way of thinking’, and aim for revival of national power, being kept in step by politicians, bureaucrats, business leaders, and people. Otherwise, Japan will sink sooner or later without fail.