Vol.25 採算意識を高める/ Keep profitability in one’s mind

Vol.25 採算意識を高める







Vol.25 Keep profitability in one’s mind 

  Mr. Kazuo Inamori (Founder of Kyocera and KDDI, Honorary Chairman of JAL) has introduced an independent profit system for all workplaces in Kyocera, and has implemented an hourly profit system at each workplace. Thanks to this effort, each employee helps to raise their profitability awareness, and each of them is working hard like a manager, according to his book “Kyocera Philosophy”.  

  This is the basis of ‘Amoeba management’, a management method devised by Mr. Inamori. Kyocera started the Amoeba management when the company was still a small and medium-sized enterprise, and after that, not only did Kyocera become a large enterprise thanks to the Amoeba management, but it was also wonderful that the Amoeba management played a big role in the revitalization of the failed JAL. The content of amoeba management is explained in detail in Mr. Inamori’s book “The Ameba Management”, so I hope those who are interested can get it. 

  By the way, I, who is a restaurant owner in San Francisco, has been working in a different way to improve profitability. In my case, I adopted the method of dividing the sales after tax by the total working hours of all employees, which was a little simpler than the Amoeba management, and used it as an indicator of productivity. In the United States, there are many people who work on an hourly basis, and it is common for them to be paid twice a month. I also used the indicator twice a month to check our productivity in my own way, which helped me understand the current state of my business.   

  Since my method is simple, I can introduce it in any industry immediately, but the difficulty is that the cost is not reflected in the indicator at all. In other words, it is not useful enough for raising the profitability of each employee, because the cost reduction efforts of employees cannot be reflected in the indicator. On the other hand, the goodness of Kyocera’s hourly profitability system is that the efforts of employees to reduce costs are reflected in the indicator, so it is easy to raise the cost awareness of employees, and as a result, it is easy to draw out the cooperation of all employees.  I understand that what made Kyocera a big company was undeniably the constant efforts of all employees, and the Amoeba management played a major role in driving it.  

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