OECD on Intellectual Assets Based Management Strategies to improve organizational strengths at Kao

Transcription

1 OECD on Intellectual Assets Based Management Strategies to improve organizational strengths at Kao 1) Use of employee attitude surveys 2) Spread of corporate principles Kao Corp. Human Resource Development Division Junichi Kashiwagi 1

2 Efforts to improve organizational strengths Kao s Kao s basic basic principles and and action action guidelines 1995 Kao Management Principles Business principles (forms the basis of corporate activities) Action guidelines (forms the basis of employees actions) 1997 Corporate Ethics of Kao Corporation Ethics for Kao s business activities Ethics for individual Kao employees 2003 Kao BCG (Business Conduct Guidelines) Guidelines for conducting business at Kao 2004 The Kao Way Mission Vision Values Principles Kao s Kao s operating principles 1995 Vision 2000 Set numerical targets for management 1999 Adoption of EVA (Economic Value Added) 2000 Kao Basic Business Strategy 2005 Kao BBS2005 (Basic Business Strategy 2005) Management methods Medium-term growth strategies Energizing workers and improving social value 2001 Find (Employee attitude survey) 2005 Kao BBS2010 (Basic Business Strategy 2010) 2

3 1.Strategies to improve organizational strengths based on employee attitude surveys Strong Company (Financial (Financial Capital) Capital) BBS 2005 Good, Strong Company Good Company (Intellectual (Intellectual Capital) Capital)? No.1 Focusing on core operations No.2 Expanding overseas operations No.3 Maximizing corporate value No.4 Business innovation No.5 Stimulation of human resources No.6 Improving social value of the company 3

4 FIND (Survey of employee opinions and attitudes) In Order To Implement Basic Business Strategy Kao must objectively determine and analyze current conditions across the group. It must then consider and implement the required action plans as soon as possible. To quickly put the Basic Business Strategy into practice, Kao must carry out employee attitude surveys, uncover issues and aim to become a good, strong company, in terms of intellectual capital (human and organizational capital). Energizing Capital Resources (To create a company that is attractive and rewarding for enthusiastic and skilled workers) Improving social value of the business (To create a company all stakeholders can support and trust) Employees Customers A company that can offer appealing products A company people want to work at Shareholders A company worthwhile investing in Suppliers A company other firms want to deal with Support and Trust Regional companies 4

5 Framework for employee attitude survey (Find) Employee satisfaction levels Enthusiasm for work Company loyalty Improving organizational functions is linked to boosting satisfaction levels Functioning status of the organization Functioning status of top management How high is employee satisfaction? Is the organization functioning without problems? Functioning status of middle management Functioning status of the workplace How are measures adopted by Kao communicated to employees? Functioning status of systems and infrastructure Rules and measures to make the Kao group a better company Corporate principles BBS2005 CSR BCG EPS EVA TCR Strengths that are the foundation of the Kao group Company strengths Culture and climate What type of understanding do employees have about Kao s culture and climate? What type of understanding do employees have about Kao s strengths? 5

6 Process for drawing up action plans Action plan for the entire company Action plans for each division BBS2005 Good and Strong Company Conduct Find survey for employee opinions and attitudes Strong Company (Financial Capital) Good Company (Intellectual Capital) No.1Focus on core operations No.4Business innovation No.2 Expand overseas operations No.3 Maximize corporate value No.5 Stimulate human resources No.6 Improving social value of the company Issues for improvement Receive feedback 6

7 Linking action plans to management evaluations The linking of action plans to evaluations (goal management) will lead to more concrete and continuous improvements in organizational functions. Business data perspective Conduct survey Operating process perspective Goal Management Personnel and organizational management perspective Rate of implementing (realizing) Find action plans Improving results of employee attitude surveys (Find) Nurturing specialist personnel and assisting self-development Creating structures for in-house communication Convening meetings for achieving goals and evaluations Participating in external training and holding in-house workshops Drafting and implementing action plans Fostering an innovative corporate climate Spread of business visions 2 Personnel and organizational management perspective Customer perspective Action plan Find Single out issues for improvement Feedback 1Action plans based on issues for the organization Functioning status of middle management Functioning status of the workplace Open comments Action plans based on issues for each function of the organization Responses related to functions for each division Open comments 7

8 2. Strategies to improve organizational strengths through the spread of corporate principles Overseas markets are even more important given the saturation of domestic consumer markets The most important issue not only in Japan but overseas is securing highly skilled workers and nurturing next-generation leaders Measures apart from compensation are necessary for keeping highly skilled workers Development from a medium- and long-term perspective (career paths and offering growth opportunities) Holding onto highly skilled workers is not just an issue for overseas companies In order to maintain and improve competitiveness, it is essential to provide opportunities to work on a global platform Efforts must be made to handle the new issue of diversified management Implementing standardization, improving transparency, among other items Spread Kao s values and philosophy as stated in Kao Way and ensure ownership throughout the company Focus not only on developing knowledge and expertise, but also sharing values and fostering next-generation leaders 8

9 Kao Way Mission Vision Values Principles : What we exist for : Where we want to go : What we believe in : How we behave Our mission is "to strive for the wholehearted satisfaction and enrichment of the lives of people globally" through the Company s core domains of clealiness. Beauty, health and chemicals. Fully committed to this mission, all members of the Kao Group work together with passion to provide products and brands of excellent value created from the consumer/customer's perspective. In so doing, we "share joy with the consumer/customer". 9

10 The spread of Kao Way at divisions and overseas subsidiaries Spread of Kao Way Kao Way Workshops Disseminate Understanding (realizations) Kao Way practices PDCA cycle Find Evaluate Innovate Know Providing tools and information New Goals Find Action Plan BBS Innovating the corporate climate 10

11 Kao Way Workshops (Training) To develop a deep understanding of practices CEOs and Division Chiefs Managers Leaders Example by leadership Spread Top-down approach Phase 1 Fostering trainers Corporate facilitators to oversee progress throughout the group Headquarters will support with Phase 1 Phase 2 Staff Goal: To create a structure for the self-sustained spread of Kao Way in each division and subsidiary Foster facilitators for the self-sustained spread of Kao Way at each division and subsidiary In addition to becoming a person embodying the practices of the Kao Way, also be responsible for guiding and communicating Managers to achieve spread of Kao Way at each division, with corporate facilitators to help From now on, use Find to determine the spread, understanding and application of Kao Way and make further improvements 11