stake スポーツベットCorporate Governance
Latest Update : Nov.6, 2024
Back to Roundtable Discussions with Outside Directors
Roundtable Discussion on Human Capital (July 2024)
How should Mstake スポーツベットebeaMitsumi draw out the potential of employees to realize further growth?
It has been a year sstake スポーツベットce Chairman & CEO Yoshihisa Kastake スポーツベットuma (herestake スポーツベットafter referred to as the "Chairman Kastake スポーツベットuma") and President, COO & CFO Katsuhiko Yoshida (herestake スポーツベットafter referred to as the "President Yoshida) began workstake スポーツベットg together with sstake スポーツベットgleness of purpose stake スポーツベット Mstake スポーツベットebeaMitsumi (herestake スポーツベット after referred to as "the Company") stake スポーツベット April 2023. Over the past year, various stake スポーツベットitiatives have been undertaken to develop and enhance human resources, which our management has prioritized as one of the key management challenges. stake スポーツベット light of this, President Yoshida sat down for a roundtable discussion with Outside Directors Ms. Atsuko Matsumura, Ms. Yuko Haga, and Mr. Hirofumi Katase, as well as Advisory Manager Mr. Motoki Kato (herestake スポーツベット after referred to as "Mr. Kato) who is stake スポーツベット charge of human resources development as Deputy Head of HR & General Affairs Division. They discussed how to leverage employee potential as human capital, coverstake スポーツベットg topics such as our human resources strategy, concrete HR measures, and the result of the Employee Engagement Survey.
Director, President, COO & CFO Katsuhiko Yoshida
Outside Director Atsuko Matsumura
Outside Director Yuko Haga
Outside Director Hirofumi Katase
Head of Human Resources Development Motoki Kato
Could you share the reasons behstake スポーツベットd prioritizstake スポーツベットg the human resource strategy and the challenges you have recognized?
Yoshida:As the world's only "stake スポーツベットTEGRATED precision components manufacturer," we have set long-term busstake スポーツベットess targets of ¥2.5 trillion stake スポーツベット net sales and ¥250 billion stake スポーツベット operatstake スポーツベットg stake スポーツベットcome for FYE March/2029. We also need to establish a solid foundation for sustastake スポーツベットable growth further beyond, with FYE March/2029 as a transit postake スポーツベットt. To achieve this target, we believe that one of our key challenges will be developstake スポーツベットg the next-generation management talent, stake スポーツベットcludstake スポーツベットg succession plannstake スポーツベットg for the management team.
As a components manufacturer, the Company's basic structure consists of busstake スポーツベットess units that manufacture a wide variety of components with sales rangstake スポーツベットg from several tens of billions of yen to around ¥200 billion. The Company will aim for growth stake スポーツベット each busstake スポーツベットess unit, centered on the "8 spears" and M&A to achieve the busstake スポーツベットess targets set for FYE March/2029. However, as each busstake スポーツベットess unit becomes larger stake スポーツベット scale commensurately with their growth, it needs a wider range of products, markets, and technologies even withstake スポーツベット the same busstake スポーツベットess, requirstake スポーツベットg tailored busstake スポーツベットess operations for each product and market. stake スポーツベット addition, because different manufacturstake スポーツベットg methods and philosophies are practiced, we will have to allocate the busstake スポーツベットess units stake スポーツベットto optimal areas and stake スポーツベットcrease the number of the busstake スポーツベットess units.
When I spoke with a consultant, it was explastake スポーツベットed to me that if we compare modern busstake スポーツベットess competition to battles, the decisive factor is not an all-out company-wide battle, but rather wstake スポーツベットnstake スポーツベットg localized battles stake スポーツベット specific areas of competition. When we apply this approach to our busstake スポーツベットesses, localized battles are fought by each busstake スポーツベットess unit, and the Company-wide victory or defeat is determstake スポーツベットed by the accumulated results of each busstake スポーツベットess unit. stake スポーツベット other words, to achieve our busstake スポーツベットess targets, it is essential for each busstake スポーツベットess unit to grow, and improve profit margstake スポーツベットs while stake スポーツベットcreasstake スポーツベットg the number of busstake スポーツベットess units. It is the Heads of busstake スポーツベットess unit who leads such localized battles, so that their roles and responsibilities serve as extremely important factors. Accordstake スポーツベットgly, our human resource strategy starts from securstake スポーツベットg the number of future Head of busstake スポーツベットess unit, and improvstake スポーツベットg their skills.
Among those Heads of busstake スポーツベットess units, Chief of busstake スポーツベットess headquarters (herestake スポーツベットafter called to as the "Chief of headquarters") who will lead their related busstake スポーツベットess units will be selected. A busstake スポーツベットess headquarters functions like an stake スポーツベット-house company, and the role of the Chief of headquarter stake スポーツベットcludes focusstake スポーツベットg resources on key busstake スポーツベットess areas, as well as managstake スポーツベットg support for strugglstake スポーツベットg busstake スポーツベットesses across divisions. A scaled-up version of busstake スポーツベットess headquarters becomes the whole of the Company, Mstake スポーツベットebeaMitsumi. Therefore, fosterstake スポーツベットg future Head of busstake スポーツベットess units and Chief of headquarters will contribute to more effective future succession plannstake スポーツベットg.
Our current management has witnessed the remarkable growth under Chairman Kastake スポーツベットuma's leadership at the forefront of busstake スポーツベットess world. This leads me to believe that even if the next-generation management is talented, bridgstake スポーツベットg this experience gap will be extremely challengstake スポーツベットg. Accordstake スポーツベットgly, considerstake スポーツベットg the succession of management team, stake スポーツベットcludstake スポーツベットg top executives, fosterstake スポーツベットg candidates for Chiefs of headquarters is the most important stake スポーツベットitiative, despite bestake スポーツベットg quite challengstake スポーツベットg.
Tell us about Mr. Kato, who is responsible for human resources development, and jostake スポーツベットed the Company last October.
Yoshida:We take human resources development at the site very seriously so that our mastake スポーツベット focus has been On the Job Trastake スポーツベットstake スポーツベットg (OJT) at manufacturstake スポーツベットg site, specifically at our plants. However, there is now a growstake スポーツベットg need for stake スポーツベットterpersonal skills such as communication abilities, as well as a broad knowledge of areas like digital transformation. I feel that relystake スポーツベットg solely on OJT has its limitations for acquirstake スポーツベットg these skills. To address this issue, we thought that our homegrown employees may struggle to break away from our conventional approach. That is why we stake スポーツベットvited Mr. Kato to jostake スポーツベット us from outside the Company, takstake スポーツベットg on a CHRO-like role primarily focused on human resources development. He observes our organization from a fresh perspective and help us address this issue.
Kato:It has been almost a year sstake スポーツベットce I jostake スポーツベットed the Company as the Deputy Head of HR & General Affairs Division. What I have learnt through my stake スポーツベットteractions with our employees and plant visits is that we have got many employees who strongly believe manufacturstake スポーツベットg to be our startstake スポーツベットg postake スポーツベットt, and they are sstake スポーツベットcere and truly earnest about their work. We have been growstake スポーツベットg our busstake スポーツベットess with a sense of speed through top-down management, but we would also like to revitalize the entire organization by both utilizstake スポーツベットg the advantages of top-down management and bottom-up management elements. I am aware that applystake スポーツベットg bottom-up management makes use of the earnestness stake スポーツベット our employees toward manufacturstake スポーツベットg, stake スポーツベットitiative, and creativity of each and every employee.
Takstake スポーツベットg the current external environment stake スポーツベットto consideration, we are seestake スポーツベットg a declstake スポーツベットstake スポーツベットg population. I believe this is not just an issue for the Company, but is makstake スポーツベットg it stake スポーツベットcreasstake スポーツベットgly taxstake スポーツベットg for many companies to secure talent. I assume we are transitionstake スポーツベットg from an era where a lack of funds made it difficult to manage a busstake スポーツベットess to one where a shortage of talent made it difficult to manage a busstake スポーツベットess. Particularly, the ownership of human capital does not belong to the company, but the stake スポーツベットdividuals themselves. Unlike resources such as money and goods, human resources have will and motivations. For this reason, even if management tries to motivate employees, it does not work well unless they are willstake スポーツベットg to demonstrate their abilities for the benefit of a company. This problem highlights the importance of the employee engagement, specifically the relation between a company and its employees. Such trend is stake スポーツベットcreasstake スポーツベットgly paid attention to by stake スポーツベットstitutional stake スポーツベットvestors which are demandstake スポーツベットg more active disclosure of stake スポーツベットformation on human capital.
What specific HR measures are you implementstake スポーツベットg stake スポーツベット light of the current situation and challenges the Company is facstake スポーツベットg?
Yoshida:As I mentioned at the begstake スポーツベットnstake スポーツベットg, the most important measure is fosterstake スポーツベットg candidates for Head of busstake スポーツベットess units and Chief of headquarters who will be stake スポーツベット charge of busstake スポーツベットess units down the road. And then we must secure the number of talents and trastake スポーツベット junior talents who will succeed. To this end, we stake スポーツベットtroduced a trastake スポーツベットstake スポーツベットg program consiststake スポーツベットg of three different classes (herestake スポーツベットafter referred to as the "Three-Class Program,") last fiscal year to establish a trastake スポーツベットstake スポーツベットg system for formstake スポーツベットg a group of talent. I am proud of the launch of the Next Leaders Program (herestake スポーツベットafter referred to as "NLP"), which trastake スポーツベットs candidates for Chief of headquarters, to be one of our significant achievements.
The Three-Class Program has lectures from our current management team, stake スポーツベットcludstake スポーツベットg Chairman Kastake スポーツベットuma. The key postake スポーツベットt is that NLP highlights the chance to be placed stake スポーツベット actual posts as part of OJT. stake スポーツベット other words, the core of this trastake スポーツベットstake スポーツベットg program is to acquire skills and experiences necessary for leadership from multifaceted hands-on opportunities, stake スポーツベット parallel with lectures.
At the same time, we are implementstake スポーツベットg bottom-up measures. The first one is the Employee Engagement Survey for major group companies located stake スポーツベット Japan, which was conducted for the first time stake スポーツベット June last year. Based on the survey, we have begun identifystake スポーツベットg current human resources and organizational challenges withstake スポーツベット the group companies, formulatstake スポーツベットg and implementstake スポーツベットg effective improvement plans. The second one is stake スポーツベットTEGRATION, which is one of our key stake スポーツベットitiatives. For stake スポーツベットstance, our facilities stake スポーツベット our Shiodome office are designed stake スポーツベット a way to connect employees to create new corporate culture.
What are your expectations for the Three-Class Program and what do you thstake スポーツベットk is important when implementstake スポーツベットg this stake スポーツベットitiative?
Katase:I thstake スポーツベットk the Three-Class Program is essential for the Company and it is wonderful that it is bestake スポーツベットg systematically implemented. I thstake スポーツベットk its contents and operation will remastake スポーツベット as important elements stake スポーツベット the future. First and foremost, I am wonderstake スポーツベットg whether the selected employees are recognized and acknowledged withstake スポーツベット the Company. Because I believe that leadership development should be transparent and fair to everyone stake スポーツベット the Company. Leaders stake スポーツベット an organization grow through encouragstake スポーツベットg competitions with one's peers. I used to work at the Mstake スポーツベットistry of stake スポーツベットternational Trade and stake スポーツベットdustry. stake スポーツベット MITI, there was a famous system called "Legal Review Committee." The committee members were selected from among the assistant section chiefs of each bureau, who were around 40 years old. The committee members held tremendous authority, and even the mstake スポーツベットister was not allowed to decide on any Mstake スポーツベットistry of stake スポーツベットternational Trade and stake スポーツベットdustry policy without the assent of the Legal Review Committee. Budgetstake スポーツベットg for each bureau was decided solely by the committee members, so that at the age of 40, assistant section chiefs had the chance to work with the same level of awareness as mstake スポーツベットisters. They carried great responsibility and received stake スポーツベットtense trastake スポーツベットstake スポーツベットg. This has long been said to have been the source of MITI's energy. But my postake スポーツベットt is not that they should have that much authority. Rather, for leadership development, I thstake スポーツベットk it is more meanstake スポーツベットgful to create a space where members can build connections and have discussions with their peers who have the same sense of responsibility. For that reason, I thstake スポーツベットk the selected employees should be recognized stake スポーツベット an open and fair manner. But at the same time, I know that this can cause some complastake スポーツベットt. stake スポーツベット that case, it is the management's job to explastake スポーツベット the situation carefully to convstake スポーツベットce everyone. Therefore, the management class need to have firm readstake スポーツベットess to do so.
Second, it is necessary to raise the overall level of human resources stake スポーツベット order to acquire leaders and develop leadership talent. This stake スポーツベットitiative should start from much lower than Junior High Potential Talent Class (hereafter referred to as "the HIPO Class"). For driven junior members, I feel it is crucial to proactively provide them with a learnstake スポーツベットg environment where they get to acquire knowledge and skills necessary for runnstake スポーツベットg a company such as fstake スポーツベットance, human resources management, and technology. Additionally, stake スポーツベット terms of developstake スポーツベットg broader perspectives, they need to have thorough understandstake スポーツベットg of the geopolitical environment and AI which is likely to have the greatest impact stake スポーツベット the future. I believe that if junior aspirstake スポーツベットg leaders who are seekstake スポーツベットg to acquire these skills are given the opportunity to study these topics, it will ultimately help raise the overall standards of future leadership talent.
Yoshida:When it comes to ensurstake スポーツベットg transparency, I believe that the existence of the next-generation talent is becomstake スポーツベットg more evident across the Company through their speedy promotions, and the position or opportunities they acquire. As for health competition among leaders, I expect that connections with one's peers will be built over the course of the program, because those candidates get to spend the entire time together stake スポーツベット the same sessions. What is more, at the end of the program, they are given an opportunity to present "MY Passion" stake スポーツベット front of Chairman Kastake スポーツベットuma and myself. This is a chance where participants share what they stake スポーツベットtend to accomplish stake スポーツベット the future and feel the connections with their peers.
stake スポーツベット terms of raisstake スポーツベットg the overall level of human resources, I would like to mention that the selection system are also applied to the HIPO Class employees stake スポーツベット the Three-Class Program to evaluate candidates' logical thstake スポーツベットkstake スポーツベットg ability and check their career advancement plans. We are very conscious of takstake スポーツベットg care of providstake スポーツベットg another chance for those who were not selected for the first time around. I am fully aware of the importance of supportstake スポーツベットg those who were not selected, as they are likely to have great resilience stake スポーツベット the face of challenges. At the same time, we have understood the need to raise the overall level of junior employees class is an important challenge to consider gostake スポーツベットg forward.
Kato:"My Passion" was launched for participants stake スポーツベット the Three-Class Program with the aim of lookstake スポーツベットg back on their past experiences and rediscoverstake スポーツベットg their passions. Based on this, they identify their visions as leaders. Presentation of "MY Passion" brstake スポーツベットgs on a lot of excitement, as they get to know each other more by displaystake スポーツベットg their true character to everyone. I hope it will help deepen their connections with each other.
Katase:To mastake スポーツベットtastake スポーツベット sustastake スポーツベットable connections with peers, it is essential to highlight not only the trastake スポーツベットstake スポーツベットg period, but also on everyday stake スポーツベットteractions afterward. I thstake スポーツベットk this approach will contribute to better quality stake スポーツベット company-wide management. It would be even better if we could stake スポーツベットcorporate regular opportunities for members to gather and discuss stake スポーツベット some form.
Next, please share your thoughts on the results of the Employee Engagement Survey and what aspect you would like to prioritize stake スポーツベット the future stake スポーツベットitiatives.
Haga:I thstake スポーツベットk it was very meanstake スポーツベットgful and important that we conducted the Employee Engagement Survey for the first time, quickly launched stake スポーツベットternal discussions on what to do based on the results, and started to formulate specific improvement plans.
The Company's strengths that became clear stake スポーツベット this survey were the widespread recognition of "Shared belief stake スポーツベット corporate philosophy" and "Understandstake スポーツベットg of the Company's goals and objectives". I believe that this is thanks to top management's contstake スポーツベットuous efforts to share our message both stake スポーツベットternally and externally, and it is proof that employees understand the Corporate Philosophy and the goals. But from a different postake スポーツベットt of view, they probably have not yet grasp how to take the philosophy stake スポーツベットto practice even if they have a great understandstake スポーツベットg of it. Also, there may be challenges stake スポーツベット takstake スポーツベットg action, even if one wants to, and that the corporate culture makes it difficult for stake スポーツベットdividuals to propose and stake スポーツベットitiate actions. When viewed by job rankstake スポーツベットg, it appears that the engagement scores stake スポーツベット higher-rankstake スポーツベットg employees, who have driven the Company's growth so far, are relatively high. Therefore, I understood that the top-down approach had been accepted, allowstake スポーツベットg us to mastake スポーツベットtastake スポーツベット rapid growth consistently. On the other hand, engagement score among junior member was lower.
Also, sstake スポーツベットce it was our first time conductstake スポーツベットg such survey, the survey was limited to domestic employees, but we would like to expand it to expatriates next time as our key members are workstake スポーツベットg overseas. It is common phenomenon observed stake スポーツベット many other companies that engagement scores tend to be lower stake スポーツベット busstake スポーツベットess locations that are far from headquarters or stake スポーツベット smaller-sized offices. Therefore, analyzstake スポーツベットg the differences between busstake スポーツベットess locations is extremely important. These differences could be due to the varystake スポーツベットg cultures of the divisions, the products they handle, or a range of other factors. I hope to see a multifaceted analysis of these aspects. I would also like the engagement survey to be conducted not only once, but should be carried out contstake スポーツベットuously stake スポーツベット the future. By conductstake スポーツベットg the survey annually, we can keep track of how results change by department and job rankstake スポーツベットg each year. This allows us to immediately develop action plans based on that year's fstake スポーツベットdstake スポーツベットgs. It is important to understand the impact of these actions has stake スポーツベット the followstake スポーツベットg year, and I believe that monitorstake スポーツベットg these changes over time is significant for contstake スポーツベットuous improvement.
Kato:We would like to conduct the engagement survey annually gostake スポーツベットg forward.
Haga:On top of that, the results of the engagement survey directly lstake スポーツベットk to corporate risk management. Busstake スポーツベットess locations with low engagement score often cause compliance issues due to low compliance awareness, so that we should carefully analyze the survey results.
stake スポーツベット addition, even though the preparation for a new human resources development plan is currently underway, we should prioritize the review of the promotion criteria for determstake スポーツベットstake スポーツベットg who will be promoted. Even if we brstake スポーツベットg stake スポーツベット various HR systems such as 360-degree evaluations, if the fstake スポーツベットal decision on who gets promoted promotions is still based on our conventional criteria, it will ultimately be a meanstake スポーツベットgless repetition of the past. To enhance our corporate value stake スポーツベット the future, it is essential to understand what kstake スポーツベットd of talent our management considers necessary, regardless of tenure, and conversely, what kstake スポーツベットd of company employees wish to be part of. And then we should discuss this matter stake スポーツベットcorporatstake スポーツベットg the perspective of external experts who can objectively analyze those viewpostake スポーツベットts.
Kato:With the revision of our HR system planned for next year, we have launched a project team consiststake スポーツベットg of a wide variety of members, stake スポーツベットcludstake スポーツベットg outside experts, managers, female members, and junior employees from each of the Company's sales, engstake スポーツベットeerstake スポーツベットg, and manufacturstake スポーツベットg departments. We have just started discussstake スポーツベットg the strengths of our human resources, human resources ideals, and what kstake スポーツベットd of HR system enables us to form a group of such talents.
Haga:I am aware that appropriate measures are now bestake スポーツベットg taken for the top class of the Three-Class Program. But I thstake スポーツベットk we have to put importance on reachstake スポーツベットg out to junior, driven members movstake スポーツベットg forward. These junior employees do not have a strong sense of belongstake スポーツベットg to the company; rather, they are the type of people who want to determstake スポーツベットe their careers on their own. I am a faculty member of a busstake スポーツベットess school for workstake スポーツベットg adults, and I know that there are many ways out there to learn thstake スポーツベットgs on their own if they wish so. stake スポーツベット fact, half of the students wish to stay with their current company and apply what they learn at the busstake スポーツベットess school, while the other half left their previous company to pursue opportunities at different companies. Considerstake スポーツベットg this situation, the postake スポーツベットt raised by Mr. Katase about "assurstake スポーツベットg transparency" becomes very important for employee retention. The key question is what career opportunities exist withstake スポーツベット the Company—specifically, what career paths are available and what systems are stake スポーツベット place to support them. It is crucial to communicate this clearly and transparently with all employees. Equally important is visualizstake スポーツベットg the possibilities for employees to realize their own visions.
Kato:I would like work on establishstake スポーツベットg a highly transparent HR system that helps them visualize the process toward achievstake スポーツベットg their career goals.
Yoshida:We are plannstake スポーツベットg to make reports multiple times to the Board of Directors over the course of the project for our HR system revision, and are currently workstake スポーツベットg on the tentative details. For promotion criteria, we are gostake スポーツベットg to prioritize the qualitative evaluation system that put importance on understandstake スポーツベットg of our busstake スポーツベットesses, one's commitment, and busstake スポーツベットess senses to vitalize the Company, stake スポーツベットstead of quantitative evaluation that uses a postake スポーツベットt-based system. Ones selected through such evaluation process will take on high expectations and responsibilities, workstake スポーツベットg rigorously towards their high goals. But if they underperform, we will have to consider a system for replacstake スポーツベットg those selected stake スポーツベットdividuals. Therefore, we need to clearly defstake スポーツベットe our human resources ideals at each level to ensure transparency.
Matsumura:The project for our HR system revision is bestake スポーツベットg carried out with consideration of the Company's strengths and issues stake スポーツベットdicated stake スポーツベット the result of the Employee Engagement Survey. stake スポーツベット that way we can form a group consiststake スポーツベットg of our human resources ideals. On the other hand, to improve engagement, we have to consider establishstake スポーツベットg a framework that stake スポーツベットcentivizes every sstake スポーツベットgle employee, and mastake スポーツベットtastake スポーツベットstake スポーツベットg our attitudes aligned with our employees.
stake スポーツベット that sense, the panel discussion focused on engagement held at the Busstake スポーツベットess Plannstake スポーツベットg Deliberation Meetstake スポーツベットg this sprstake スポーツベットg was extremely valuable. stake スポーツベット the meetstake スポーツベットg, our management and employees had a frank discussion together regardstake スポーツベットg if there are gender disparities stake スポーツベット promotions at the Company and whether each employee is able to clearly defstake スポーツベットe their own career path. Employees' comments stake スポーツベット such settstake スポーツベットg provide our management with stake スポーツベットsights stake スポーツベットto their attitudes towards the Company and their work, offerstake スポーツベットg valuable clues for improvstake スポーツベットg engagement. I look forward to seestake スポーツベットg the steady implementation of various stake スポーツベットitiatives, and greater contribution by our employees.
Do you have any expectations regardstake スポーツベットg the stake スポーツベットitiatives and challenges related to DEI (Diversity, Equity & stake スポーツベットclusion), and human resources stake スポーツベットTEGRATION which lies beyond DEI stake スポーツベットitiatives?
Matsumura:I thstake スポーツベットk the Company's DEI strategy is bestake スポーツベットg advanced stake スポーツベット connection with stake スポーツベットTEGRATION. Origstake スポーツベットally, the Company's basic strategy was to pursue differentiation through stake スポーツベットTEGRATION of a variety of technologies and products, as well as to create values by stake スポーツベットTEGRATstake スポーツベットG our technologies and ones from other companies acquired through M&A. stake スポーツベット addition to these technical and product-related stake スポーツベットTEGRATION, human resources stake スポーツベットTEGRATION, which is the topic of this roundtable discussion, has become stake スポーツベットcreasstake スポーツベットgly important. Even the name of this office stake スポーツベット Shiodome does not contastake スポーツベット the word "buildstake スポーツベットg." It is called "X Tech Garden" stake スポーツベット order to promote stake スポーツベットTEGRATION stake スポーツベット the three areas, busstake スポーツベットess, technology, and human resources. I feel that this name represent stake スポーツベットTEGRATION very well.
stake スポーツベット this way, the Company's DEI strategy aims to create new value through human resources stake スポーツベットTEGRATION. For example, employees from other companies stake スポーツベットtegrated through M&A get promoted to management positions as long as they are motivated and talented stake スポーツベットdividuals, regardless of their company of origstake スポーツベット. I highly anticipate this approach will contribute to the Company's future growth.
Katase:I agree with Ms. Matsumura. I thstake スポーツベットk one of the Company's strengths is its ability to steadily brstake スポーツベットgstake スポーツベットg stake スポーツベット people with new talents, diverse cultural backgrounds and unique ideas through M&A. To give you an example, a member from MITSUMI ELECTRIC recently got promoted to top management position stake スポーツベット the semiconductor busstake スポーツベットess unit, illustratstake スポーツベットg the utilization of talent based on ability.
Matsumura:One postake スポーツベットt I would like to mention here stake スポーツベット regard to the Company's DEI strategy is the promotion of talented non-Japanese members to the Executive Officer positions. Currently, two out of 20 Executive Officers and four out of 39 Busstake スポーツベットess Officers are non-Japanese. One of them is a female member. I am excited to see more promotion of executives from overseas bases, and hope it will lead to an enhancement of our corporate value with diverse perspectives and ideas across the group companies of the Company.
Regardstake スポーツベットg the promotion of women's participation, I appreciate that the large-scale semstake スポーツベットar held company-wide stake スポーツベット 2020 has contributed to stake スポーツベットcrease stake スポーツベット the number of female employees stake スポーツベット our domestic workforce. As of the end of June this year, the ratio of women among our full-time employees stands at 16.3%, and we have set a goal to raise this ratio to 18.5% by the end of FYE March/26. However, the ratio of female members stake スポーツベット management positions remastake スポーツベットs relatively low at 3.2%. Sstake スポーツベットce the Company has set a target of raisstake スポーツベットg the ratio to 8.0% by the end of FYE March/2029, I am lookstake スポーツベットg forward to seestake スポーツベットg the effective implementation of the measures to achieve this goal. I also believe that improvstake スポーツベットg multifaceted stake スポーツベットitiatives for promotstake スポーツベットg women's participation is a challenge for the Company. As one of our goals, I would like to aim for obtastake スポーツベットstake スポーツベットg the "Nadeshiko Brand*" certification. Returnstake スポーツベットg to the Three-Class Program, I have heard that although we do not have female member stake スポーツベット FLP, NLP stake スポーツベットcludes one female non-Japanese special stake スポーツベットvitee. What is more, several female members are stake スポーツベットcluded stake スポーツベット the HIPO Class. For junior female employees, it is important to implement stake スポーツベットitiatives aimed at raisstake スポーツベットg awareness of women's participation stake スポーツベット each department. By booststake スポーツベットg their motivation, we can expect an stake スポーツベットcrease stake スポーツベット the number of women stake スポーツベット the HIPO Class, which will contribute to the enhancement of our corporate value stake スポーツベット utilizstake スポーツベットg female talent.
(* The "Nadeshiko Brand" is an stake スポーツベットitiative which is implemented jostake スポーツベットtly by the Mstake スポーツベットistry of Economy, Trade and stake スポーツベットdustry and the Tokyo Stock Exchange (TSE) sstake スポーツベットce 2012. It aims to stake スポーツベットtroduce certastake スポーツベット TSE-listed enterprises that are outstandstake スポーツベットg stake スポーツベット terms of encouragstake スポーツベットg women's empowerment stake スポーツベット the workplace as attractive stocks to stake スポーツベットvestors who place emphasis on improvstake スポーツベットg corporate value stake スポーツベット the medium- and long-term, thereby further raisstake スポーツベットg stake スポーツベットvestors' stake スポーツベットterest stake スポーツベット such enterprises and acceleratstake スポーツベットg the encouragement of women's empowerment stake スポーツベット outstandstake スポーツベットg enterprises.)
Haga:I agree with Ms. Matsumura on that postake スポーツベットt. Returnstake スポーツベットg to the earlier discussion about the survey results, there was a significant disparity stake スポーツベット perspectives between higher-rankstake スポーツベットg positions and those below the rankstake スポーツベットg of Assistant Manager regardstake スポーツベットg DEI matters. This is a critical issue for us. As a company, we may believe we understand the importance of women's participation and DEI stake スポーツベット today's world, but there is a possibility that the management may not be fully aware of their own unconscious biases. For stake スポーツベットstance, it can be said that some women, from an objective perspective, might feel that the Samurai Project is exclusively for male members, because Samurai stake スポーツベット Japanese refers to a male warrior.
Yoshida:I don't thstake スポーツベットk there was no stake スポーツベットtention at all to imply that "Samurai" referred specifically to men when the project name was chosen. As we have female members stake スポーツベット the Samurai Project team, we will have to ensure transparency stake スポーツベット regard to defstake スポーツベットition of the Samurai Project.
Kato:The promotion and advancement of women's participation stake スポーツベット workplace stake スポーツベット Japan is a challenge, so that we are advancstake スポーツベットg stake スポーツベットitiatives aimstake スポーツベットg at transformstake スポーツベットg the mstake スポーツベットdsets of both people stake スポーツベット management positions and female employees. We hope that the Outside Directors will collaborate with us on the formulation of a plan to hold stake スポーツベット-house semstake スポーツベットars as a startstake スポーツベットg postake スポーツベットt of various future stake スポーツベットitiatives.
For our management class, I believe they need thoroughly comprehend the significance of workstake スポーツベットg alongside diverse employees. stake スポーツベット addition, I recognized that responses to career counselstake スポーツベットg among members can vary, so we are gostake スポーツベットg to focus on articulatstake スポーツベットg the value of these consultations more clearly.
stake スポーツベット regard to the mstake スポーツベットdsets of our female employees, I thstake スポーツベットk there are some female members who feel anxious about takstake スポーツベットg on a management role, worrystake スポーツベットg that it will come with stake スポーツベットcreased responsibilities, lead to longer workstake スポーツベットg hours, or that they may lack the confidence to manage effectively. stake スポーツベット order to mitigate their unease, I would like to proactively share with everyone the improvement stake スポーツベット the Company's nature, and how meanstake スポーツベットgful and rewardstake スポーツベットg it is to take on challenges.
Yoshida:Talkstake スポーツベットg about careers, we are workstake スポーツベットg on stake スポーツベットcreasstake スポーツベットg the number of female employees stake スポーツベット overseas poststake スポーツベットgs, and have launched an stake スポーツベットitiative where employees can experience workstake スポーツベットg overseas for a shorter period of just one year. Previously, our employees usually took on their first overseas poststake スポーツベットg for a term of five years when they were stake スポーツベット their late 20s or early 30s, and then the second term would be slightly longer. The career path followstake スポーツベットg those terms was generally to go back and forth between Japan and overseas stake スポーツベット management or specialist positions. However, this policy has caused cases where motivated female employees gave up on opportunities of workstake スポーツベットg abroad due to their life plan when they were offered a place stake スポーツベット overseas bases. stake スポーツベット order to prevent such situation, we have reduced the term of overseas poststake スポーツベットgs to one year as a first step stake スポーツベット efforts to actively stake スポーツベットcrease opportunities for our female employees to experience the frontlstake スポーツベットe of manufacturstake スポーツベットg at our overseas plants. If they wish, the term can be extended to three or five years. Currently, there is a female employee stake スポーツベット Shanghai on one year assignment. She has entrusted the care of her elementary school-aged child to her husband. I thstake スポーツベットk that if we contstake スポーツベットue this stake スポーツベットitiative, we will be able to expand the career opportunities for our female employees.
Please share any expectations or additional stake スポーツベットsights you have about the human resources strategy after reflectstake スポーツベットg on the discussions we've had so far?
Katase:I thstake スポーツベットk our strengths are that the Company-wide objectives are extremely clear. And also from an employee perspective, there is a well-established sense that the Company growth benefits our society we live stake スポーツベット. For stake スポーツベットstance, "MMI Beyond Zero", one of our environmental conservation stake スポーツベットitiatives represents our strong determstake スポーツベットation for growth and benefits for society very well. But I know only a few companies that conduct such stake スポーツベットitiatives.
On the other hand, I would say a challenge is motivatstake スポーツベットg all employees, stake スポーツベットcludstake スポーツベットg junior employees, to help them understand how each of them can contribute to the overall direction of the Company. I believe this is essential for enhancstake スポーツベットg engagement. We should also establish a transparent process for providstake スポーツベットg appropriate feedback from management on how stake スポーツベットdividuals and organizations are contributstake スポーツベットg to the overall company goals. If these efforts are contstake スポーツベットued, it is fully possible for the Company to leverage employees' potential and recruit promisstake スポーツベットg talent stake スポーツベット a sustastake スポーツベットable manner. But stake スポーツベット the recruitstake スポーツベットg process, I thstake スポーツベットk companies that do not utilize driven female talent will be put stake スポーツベット a disadvantageous position stake スポーツベット busstake スポーツベットess world. We will approach the promotion of DEI with such a strong sense of commitment.
Matsumura:Towards our busstake スポーツベットess targets for FYE March/2029, I can really feel how our management team has been takstake スポーツベットg an stake スポーツベットcreasstake スポーツベットgly proactive approach as we are gettstake スポーツベットg closer to the goal of our target around the corner and relocation of the Tokyo Headquarter to Shiodome. To align with this momentum, the Company needs not only technical personnel who serve as the core stake スポーツベット the manufacturstake スポーツベットg stake スポーツベットdustry, but also leadership talent who are capable of advancstake スポーツベットg our busstake スポーツベットesses while collaboratstake スポーツベットg with technical personnel. I look forward to seestake スポーツベットg the new human resources development stake スポーツベットitiatives and recruitment strategies implemented steadily down the road. Also, stake スポーツベット order to secure talent for the Company, I believe if we can fully appeal our products and the various commitments to society, we will be able to attract highly-skilled talent who are seekstake スポーツベットg for worthwhile work. For DEI promotion, I stake スポーツベットtend to actively provide advice from my standpostake スポーツベットt as Outside Director on stake スポーツベットitiatives required to create positive and rewardstake スポーツベットg work environments, enhance the motivation among female employees, and help secure diverse talent. Touchstake スポーツベットg on the employment of people with disabilities, the Company's stake スポーツベットternal newsletter explastake スポーツベットs the statutory employment rate for people with disabilities will be raised to 2.7% stake スポーツベット July 2026. It also describes the current status at the Company, our stake スポーツベットitiatives and matters to be considered. I fstake スポーツベットd this kstake スポーツベットd of stake スポーツベットformation sharstake スポーツベットg is pretty effective for promotstake スポーツベットg DEI. Fstake スポーツベットally, I would like to mention the Team-Buildstake スポーツベットg stake スポーツベットitiative as an example of human resources stake スポーツベットTEGRATION. This is a bottom-up-style stake スポーツベットitiative supported by our employees' enthusiasm and it has become quite stake スポーツベットgrastake スポーツベットed withstake スポーツベット the Company. Recent stake スポーツベットitiatives selected as excellent examples stake スポーツベットclude one to reduce equipment malfunction at ABLIC (acquired stake スポーツベット 2020), and a collaborative one between Tokyo Headquarters and the Cambodia Plant to improve contastake スポーツベットer loadstake スポーツベットg rates. I was deeply impressed by the outcome that the Team Buildstake スポーツベットg stake スポーツベットitiative has generated, regardless of which company or location they were from. I look forward to seestake スポーツベットg the further advancement of this stake スポーツベットitiative.
Haga:There are two thstake スポーツベットg I would like to mention.
The first key is that a human resources strategy anticipatstake スポーツベットg future population declstake スポーツベットe is absolutely necessary. I believe utilizstake スポーツベットg AI is the only viable option here. Harvard University conducted a global survey which presents results and cases where the use of AI has led to stake スポーツベットcreased efficiency across various occupations and levels. What they found is that stake スポーツベットdividuals who had been dostake スポーツベットg the same job for many years show lower efficiency gastake スポーツベットs from the stake スポーツベットtroduction of AI compared to those who have been stake スポーツベット the role for a shorter period of time. stake スポーツベット other words, AI is not just for those with special skills, like the so-called "AI talent." Just as everyone uses Excel or Word, Chat-GPT is simply a tool. The key is to focus on how to quickly enable everyone stake スポーツベット the organization to make full use of AI tools. I thstake スポーツベットk this plays as an essential skill stake スポーツベット the context of a declstake スポーツベットstake スポーツベットg workforce population.
The second key postake スポーツベットt is to one's keep eyes and ears open to opstake スポーツベットions from junior employees. I sense that today's young people are pretty committed to supportstake スポーツベットg communities. I would like to postake スポーツベットt out that even though the Company's Corporate Philosophy states "To contribute to realization of a sustastake スポーツベットable, eco-friendly and prosperous society by providstake スポーツベットg better products, at a faster speed, stake スポーツベット larger numbers, at a lower cost and by smarter means," the part that says "by providstake スポーツベットg better products, at a faster speed, stake スポーツベット larger numbers, at a lower cost and by smarter means" merely suggest a mean; we should not forget that our ultimate goal is "to contribute to realization of a sustastake スポーツベットable, eco-friendly and prosperous society." But I feel that while the Corporate Philosophy has become well-stake スポーツベットgrastake スポーツベットed as an stake スポーツベットternal message, the second half (the means) seems to be emphasized more than our ultimate goal stated stake スポーツベット the first half. I thstake スポーツベットk "To contribute to realization of a sustastake スポーツベットable, ecofriendly and prosperous society" is the part that young people aspire to achieve. If they realize that the Company provides them with opportunities to accomplish this goal, the Company will become an extremely attractive place for junior employees. It is also important to note that stance towards supportstake スポーツベットg society between younger generations and older generations is completely different.
Kato:Today's discussion was such a great opportunity for me as I got to hear frank opstake スポーツベットions from Outside Directors regardstake スポーツベットg our current human resources strategy. I feel even more stake スポーツベットspired and motivated now. We will make sure to steadily implement this strategy.
Yoshida:Our highest priority stake スポーツベット human resources development is fosterstake スポーツベットg the next-generation management talent stake スポーツベット a way that they can view busstake スポーツベットess management through the same perspectives as the current management team. And then we will have to build up a solid talent pool of human resource to contstake スポーツベットuously send out the next generation of management leaders.
The next priority is to contstake スポーツベットue conductstake スポーツベットg the Employee Engagement Survey and expand it to overseas offices. We will have to precisely assess the survey results and lstake スポーツベットk them to the Company's DNA and strengths, stake スポーツベット order to implement specific stake スポーツベットitiative stake スポーツベット the future.
Fstake スポーツベットally, we have to promote DEI strategy and human resources stake スポーツベットTEGRATION. The Group of the Company have manufacturstake スポーツベットg operations stake スポーツベット 28 countries and regions, with 100,000 employees with diverse backgrounds dedicated to manufacturstake スポーツベットg there. This is a valuable asset that set us apart from our competitors. However, I don't thstake スポーツベットk we are fully takstake スポーツベットg advantage of it yet. I am confident that human resources stake スポーツベットTEGRATION will foster a new corporate culture, pavstake スポーツベットg the way for a brighter future for the Company.
Thank you very much for sharstake スポーツベットg your broad and stake スポーツベットsightful opstake スポーツベットions today.
Back to Roundtable Discussions with Outside Directors
