[Lean Management] The Essence of Japanese Corporate Management

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This post was last edited by Yuqin on 2020-3-16 at 21:22. Made in Japan – a synonym for excellent quality. Precise manufacturing, reasonable prices, attractive designs, superior quality, and environmental friendliness are among the characteristics of Japanese products. In 2010, 68 Japanese companies were among the world’s top 500 companies, ranking second only to the United States. Among the well-known brand companies in our country are Panasonic, Toshiba, Toyota, Sony, Honda, Hitachi, Nissan, Canon, and others. Furthermore, Japanese companies also rank among the best in terms of longevity, with countless businesses having survived for over a hundred years. So why can Japanese companies maintain such strong vitality and competitiveness? 　　I. A rigorous and meticulous work style. 　　Japanese companies have a highly rigorous and standardized management system, with well-developed corporate management frameworks and procedural systems. Japanese companies are very committed to implementation; they possess a strong sense of discipline, respecting and adhering to rules. From the president down to the lowest-level employees, everyone strictly follows the company’s policies and operates in accordance with established procedures. Moreover, Japanese companies have a very strong sense of planning; the preliminary preparation for each task, the formulation of plans, their implementation, data collection, and analysis and summarization are all carried out in an orderly manner according to a set plan. When I worked as a PMC manager at a Japanese-owned company, the firm had nearly 60 production lines, yet we were able to plan production with precision down to each day of the next 6 weeks, providing responses to customers and taking responsibility for delivery dates – something that is considered unimaginable in the vast majority of companies. Furthermore, in terms of detail management, the gap between us and Japanese companies is quite significant. Waste materials in these companies are carefully sorted and placed in order; even the arrangement of folders is marked with adhesive tape for clarity. The meticulousness and dedication of the Japanese are often described by many of us as \"stupidity\" – for example, no matter how hot it is, Japanese people will meet clients dressed in suits, and they will never stop wiping a table until it’s clean ten times. It is precisely this kind of thoroughness and dedication that has led to the high quality and excellent craftsmanship of Japanese products today. II. A highly dedicated professional attitude. 　　The Japanese are world-famous for their work ethic; work comes first and foremost, and sometimes even a sense of dedication is required. They believe that work is the essence and true meaning of life, and they value loyalty and commitment. So they treat the company as their home, working diligently and tirelessly throughout their lives, and are referred to as \"worker bees\". In Japanese-owned companies, it is common to see Japanese workers working late into the night, yet they still show great energy when going to work the next day. Unlike the vast majority of our countrymen, we view work merely as a job, as part of life; they, on the other hand, see it as a sacred mission, truly treating it as their own career, with employees and bosses working together as one. This is the real gap between Chinese companies and Japanese companies. 　　III. Comprehensive welfare benefits. 　　Japoneses place value on loyalty and dedication, considering the company to be like a family, and this is because companies offer systematic and comprehensive welfare benefits that ensure a worry-free career path for them; that’s why they are willing to devote their entire lives to the company. The welfare measures provided by Japanese companies are not only comprehensive but also humane; for example, there are welcome meetings when employees start working, and farewell meetings when they leave. This creates a sense of warmth and familiarity upon arrival, and leaves employees with fond memories of the company when they depart. I left the Japanese-owned company where I worked for many years, and to this day I still miss those wonderful times ； On employees’ birthdays, weddings, births, or in the event of serious accidents, company managers and senior executives will send gifts as a way to offer comfort and support ； Providing employees with year-end bonuses, purchasing various types of insurance, housing funds, housing subsidies, meal allowances, transportation expenses, fitness cards, coupons, and more ； By building sports fields, libraries, medical rooms, and reading rooms for the physical and mental well-being of employees, as well as organizing various cultural activities, it is this systematic and comprehensive welfare system that provides constant care, enabling employees in Japanese companies to truly regard the company as their home and develop a strong sense of belonging and ownership. 　　IV. The actual cost control of being stingy. 　　The reason why Japanese companies are good at cost control is that Japan is extremely short of resources, which prevents them from wasting anything; as a result, the Japanese develop an awareness of thrift and frugality from a young age. Japanese companies regard waste as the enemy of effective business management and feel ashamed of it, which is why they always try every possible means to eliminate waste. For example, Toyota’s lean management is a very effective method for addressing waste issues. Japanese companies consider any activity that does not generate value to be waste. Japanese companies have achieved almost perfection in cost control; they prioritize practicality over appearances or showmanship. For example, many Japanese company managers and executives use rental cars for business trips, which is a stark contrast to the practice in our own country where companies often use luxury cars in large numbers. This seems incredible to us, as it’s not that they can’t afford cars – rather, it’s more economical to rent cars, as it avoids expenses such as insurance, repairs, maintenance, and driver salaries. Some Japanese companies even rent out copiers, printers, and other equipment. 　　In short, they will do whatever it takes to save costs, so cost control in Japanese companies can be described as frugal. 　　V. Unrelenting continuous improvement. 　　The ability of Japanese companies to thrive and maintain strong vitality is inseparable from their spirit of continuous improvement. They always strive to find every possible way to improve production processes, enhance product quality, control costs, and improve the environment, and they enjoy doing so. They often establish improvement teams to carry out targeted and continuous improvements to the company’s problems, such as TCM (Total Cost Management), TPM (Total Productive Maintenance), TQM (Total Quality Management), 5S, and so on. 　　VI. Standardize the talent cultivation mechanism of the system. 　　Japan attaches great importance to education. The emphasis on internal training and education within companies is not only a characteristic of Japanese businesses but has also been established as a national policy through laws; Japan enacted the Vocational Training Act in 1958. From the moment they start working, employees of Japanese companies are given a comprehensive training plan tailored to the requirements of their positions. The training covers corporate spirit, moral education, management knowledge, specialized knowledge, and work skills, among other things. It is only after working at a Japanese company for six months that one can be considered a full-time employee. Once they have completed the training and started working on the job site, the company assigns a mentor to provide further training on a one-on-one basis for another year, so that they can reach a level of proficiency. In future work, training will also be provided to employees to develop additional skills as required by the company. The concept of \"multi-skilled workers\" is a result of effective talent development practices in Japanese companies. Japanese companies also implement job rotations for their management staff in order to improve their overall capabilities and unlock their potential; meanwhile, assessments are conducted during these rotations to identify talented individuals. The vast majority of middle and senior managers in Japanese companies start from the grassroots level and progress step by step, which illustrates the importance and effectiveness of Japan’s talent development system. 　　VII. An inclusive academic spirit. 　　Japan is a people who love learning; they always seek ways to absorb the best from abroad and combine it with their own realities in order to create something unique of their own. For example, during the Tang Dynasty they learned from us, adopting our great wisdoms such as Confucianism, Buddhism, and Taoism, which led to the development of Japanese writing, tea ceremony, kimonos, and more ； During the Meiji Restoration, Japan learned from the West and developed its own industrial technologies; later, it waged aggressive wars that caused tremendous harm to China and Asia ； After World War II, Japan learned from the United States and the West, adopted the best practices from those regions, and integrated them into the actual operations of its companies, thus giving rise to the world-famous Japanese management style. There are so many methods, tools, and management styles for running businesses these days that many business owners find themselves confused about which management style to adopt. It is believed that the best management model is one that suits the unique characteristics of a company and can be effectively integrated into its actual operations; therefore, we should rationally study and adopt external management theories, take their essential elements and incorporate them into the company’s day-to-day operations in order to develop our own management style. For example, systems such as lifetime employment and the seniority-based promotion system, which are regarded as the three pillars of Japanese corporate management, are not suitable for today’s business environment, where competition is intensifying, selection based on performance is emphasized, and innovation is encouraged. WeChat official account (subscription account): Yangzhi Consulting Group YCG (WeChat ID: young6668). WeChat official account (service account): Yangzhi Consulting Service Account. Weibo: Yangzhi Consulting – China