Last summer, I was given the opportunity to speak at a session of the annual Karuizawa Leaders Seminar held by the Japan Productivity Center for Socio-Economic Development. The title, though a little dry, was "Promotion of Administrative Innovation and Related Issues."
  At this session, I introduced the concept of "Option Management," which we had been implementing at Kato Spring. Knowing that the seats were filled with the members of top management from leading companies, I was initially intrigued as to whether or not my topic would be accepted. However, as the questions began to flow, I could sense the desire for discussion welling up inside of me.
  One of the questions went like this: "I believe I understand most of what you were talking about, but I think that organizational strategy is most advanced in militaries. If you agree, the question becomes whether it is possible to develop an organizational strategy for battle if the concept of freely selected options is incorporated? What do you think?"

  Naturally, this is a question that many people have. Simply put, option management seeks to create a flexible organization in which company members can select their own working style in the company. Military organizations have a clear system of command, and a single order is disseminated to the far corners of the organization without delay. However, can this seemingly opposite form of corporate organization, being free from restraints, survive the severe competition among companies and the era of mega competition that has gripped the world? This was the underlying meaning of the question, and my answer was as follows: "Militaries have two images. The first is that everybody lines up and moves forwards or backwards in unison. It is important for people in military organizations to do a required task in the required format and as ordered.
  But what happens when the military is actually on a battlefield? There is no such thing as an encounter that goes exactly according to plan. In such an event, it is impossible to inquire about matters with a command center at the rear. The people on the frontlines must judge their situation and act immediately.
  In the case of corporations, this is called 'high-speed administration.' Although the organization must be such that, within a certain scope, everyone does the same thing in an orderly fashion, timely administration is not possible unless the individuals on the frontline are able to make quick decisions on their own.
  The more a company clearly presents what it holds important, the more company members are able to think and act along these lines without detailed rules being involved."

  Although my response was provided together with sample cases, frankly, we were still at the second or third stage of developing the option management concept. Consequently, the participants may have had a difficult time understanding the "democratization of our company." However, I am confident that our direction is right, and it is most certain that we will not stop the transition midway. Unfortunately, the Japanese economy seems to have been driven to a dead end, and most people are very pessimistic.
  It is well known that we no longer exist in an era in which things proceed well simply by clinging to the trends of the overall Japanese economy, and no longer are the fortunes of an entire industry determining individual corporate performance. We have entered an era in which each company must stand on its own. Thus, the question becomes how to make the workplace, or our environment, a meaningful location full of energy and determination.
  Work = Satisfactory achievements and more affluent lifestyle
  I can state with confidence and pride that the option management system of Kato Spring is an unprecedented challenge that is focused on the aforementioned equation.

  There are two aspects to the administrative scenario of Kato Spring: the first is a business scenario and the second an operations scenario. This book has been written to place a greater weight on the organization and administration aspects of the latter. For Kato Spring, however, it is not possible to separate the business scenario for our main market (precision springs) from the operations scenario of the entire group because the concepts are basically two sides of the same coin: create more power, attain faster implementation of business activities, and establish an organization with a fresher, finer and fairer structure. It is not important which one comes before the other. Just like a "Mebius Ring," formed by twisting a single loop of paper, the front and back are on the same plane. It is this type of workplace or stage that I continue to anticipate.
  Each and every company member has experienced different childhood environments, has a different heredity, personality, experiences and views on life, and each of them is trying to fully play out his or her role on the stage called Kato Spring. I have taken many opportunities to promote the company for the benefit of Katoites (company members of Kato Spring) after assuming the presidency from my father in 1987, to the cry of, "Cheerful, Enjoyable, Lively, and Exciting. I did it!"

  In fact, I see no value whatsoever in "existing as the president;" the value is in actively "being the president." I believe that I can contribute more as a professional earnestly working toward the realization of an ideal stage.
  "The success of the company is my duty." Simultaneously, I most definitely want to create a corporate setting where the hopes and happiness of Katoites are understood and attained through personal choices and self-motivation. For me, that is true administration and the meaning of "administrative innovation."
  There is nothing more unfortunate for a company and its company members than success and prosperity at the expense of company member sacrifice. Wherever a successful company exists, the free-living spirit expressed by the slogan "Cheerful, Enjoyable, Lively, and Exciting. I did it!" can also be found. I intend to take this "Win-Win" relationship (i.e., a management that generates positive advancement for both the company and company member) and apply it to the relationships between customer and company, and company and environment.