Chapter 7
Becoming a Nice Company
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7-1.  The Company is a Virtual Stage

  In 1997, Kato Spring tore down its head office building and moved into a single floor in the Tabata Aska Tower, a nearby intelligent building. The number of Katoites at the head office was reduced to 50 from 180, and the remaining staff members were placed in other operations in positions responsible for clerical work. There are still many people in the company who have memories of our previous headquarters. The four-story steel-reinforced structure was built in 1963. A newspaper report at that time reported that, in preparation for the following year's Tokyo Olympics, "There was an unprecedented construction rush with projects begun at 110,000 locations." Kajima Corporation became the company with the largest volume of orders in the world.
  This year marked an all-time high for the number of local graduates of junior-high schools to be carried to Tokyo via the "Shushoku Ressha" (Employment Train).
  Although the Ministry of International Trade and Industry established the Industrial Pollution Section, the debate over "river pollution" still has not made ground in the Diet.
  An analysis of industrial history reveals that the production of converters surpassed the production of open-hearth furnaces and electric furnaces this year, and the high efficiency and mass production pattern of "importing overseas iron ore -> large exclusive vessel -> major blast furnace -> semi-oxygen method converter" was established.
  Moreover, this was the first year for the American Marketing Association to incorporate the concept of "lifestyle." The trend of switching from having something forced upon you to choice had begun.
  Within the 34 years of change from 1963 to 1997, signs of change that cause people to shake their heads in bewilderment can be seen here and there.

  The reason that Kato Spring was able to divest itself of the concept that "head office = company-owned building" is because the idea of a small head office was implemented as a symbol of changing to an organization more suitable to the associates system. The idea was to lighten our footwork in order to adapt to the speed of change. We wanted to create an organization in which when a bigger place was better, we could move to such quickly, or if a smaller place was better, we could move to such quickly. In fact, the group network already enables access regardless of where the head office is. The building and address are absolutely no obstruction to accessibility.
  The function of the head office itself is also rapidly changing. As mentioned earlier, there is no need to establish a large organization and mechanism to control the group companies. Many support functions also probably need to be reviewed depending on the progress of synergistic effects.
  Then what should be done with the shape of Kato Spring's synergy, its effects and functions to heighten such? The discernment of such will probably lead to a need to change the concept of the head office.

  As I have repeatedly stated, the company is a virtual place.
  Professor Kenichi Imai of Stanford University pointed out the following when comparing a "virtual company" to a computer network: "A virtual company is an organization for effectively using parts of human abilities that aren't used. In other words, it is the effort to use human abilities from multiple aspects within society at multiple levels." This is the exact concept. There is no need for an organization with an ostentatious or complex mechanism. The motivation to participate and abilities full of energy themselves become the foci for gathering, separating and recombining for projects and business.
  Previously, Katoites asked me, "What are the requirements for a company to have a strong constitution?" I responded by describing the following type of company.

  1. Each person has numerous abilities.
  2. Internal morale is very high.
  3. There is a thick layer of strong executives capable of "adapting to change and creating change."

  Ability is best demonstrated when people are doing what they want to do. In other words, an environment full of "Cheerful, Enjoyable, Lively, and Exciting. I did it!" It is my role to build a company in which there are many Katoites with keen perceptions where I manage the directions of the high morale of Katoite by reading changes and accepting changes in an active manner.
  I am also often asked, "Does such a company actually exist? If not, can it be created?" (Although the expression is not as direct, I often feel such words are behind questions on the associates system.) My answer, "Of course, there is no such company. However, there is a model. The company I always picture as the model is the Virgin Group. Richard Branson maintains only a minimum level of control. In order to maintain a workplace environment that is free and broad-minded, he is steadily spreading smaller operations and maintaining personnel count in individual projects to 50 or less. His idea is not to be the president himself, but to appoint an administrator with such responsibility."
  I respect Richard for having not lost his venture spirit. His attitude and flexibility are truly beautiful.

  This type of stance is unthinkable from the traditional vertical approach. At the beginning of this book, I described the associates system and option management half-jokingly as factors of a "freely metamorphosing organization." I was describing not stuffy theories of management or organizations but the dimension of being able to truly enjoy unique concepts. Many images are generated from flexible and balanced thinking.
  What about changing factories into more cheerful areas similar to how we broke away from the framework of a head office? In response to an interview with the Nikkei Sangyo Shimbun, I replied, "In the near future, the workers at our factories will not be Katoites but contracted Katoites on annual salaries. They will be allowed to arrive at work and leave from work at will. Design work will also be done by exchanging data via networks. Through this, the factory can maintain its harmony as a whole. In this manner, I am burning with a venture spirit of seriously continuing to pursue the "Win-Win" image in which the joy of working for oneself leads to the success of the company."

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