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Amoeba Management
The Dynamic Management System for Rapid Market Response




ISBN 9781466509498
Published August 20, 2012 by Productivity Press
168 Pages 11 B/W Illustrations

 
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Book Description

Especially effective in dynamic and highly competitive environments, the Amoeba Management System has received attention from the Harvard Business Review and has already been successfully adopted at more than 400 companies around the world. At the heart of this innovative management system is a business philosophy based on doing the right thing as a human being and the leadership potential of all employees. This philosophy, coupled with a simple and precise micro-divisional management and accounting system that enables the distribution of leadership and management responsibility into small self-supporting units called amoebas, can help organizations achieve a high degree of flexibility and market-sensitivity.

Written by the system's creator, Amoeba Management: The Dynamic Management System for Rapid Market Response provides a comprehensive introduction to this unique and time-tested method of management control and accounting. Explaining the management philosophy and principles, it unveils fresh and pragmatic insights on how to foster a culture of leadership and responsibility in your organization. Dr. Kazuo Inamori, director and chairman emeritus of Japan Airlines, founder and chairman emeritus of Kyocera Corporation, and honorary adviser of KDDI Corporation, delves into decades of experience creating and implementing this system to supply you with invaluable operational guidance on how to monitor and manage every aspect of your company.

Facilitating the understanding required to divide your organization into small units with self-supporting accounting, this book supplies the tools to achieve a system of management by all whereby all amoeba members focus their strengths on accomplishing common goals. It provides a means for making the concept of "value-added" truly operational for every employee and describes the features and use of the Hourly Efficiency Report, the primary mechanism used to control profits. Even companies with stagnating profitability will be able to transform themselves into high-profit enterprises using the methods described in this book.

Table of Contents

AMOEBA MANAGEMENT

Each Employee Will Take an Active Role in Their Own Respective Unit
The Origins of Amoeba Management
     A Company Started with Seven Colleagues
     Establishing a Management Rationale
     Grow an Organization by Dividing It into Small Groups
     The Three Objectives of Amoeba Management
Establishing a Market-Oriented Divisional Accounting System
     Current Figures Are Needed—Not Past Statistics
     The Basis for Making Decisions: "Do What Is Right as a Human Being"
     "Maximize Revenues and Minimize Expenses"
     Creating Divisional Accounting Systems Based on Truths and Principles
     Direct Transmission of Market Movements Followed by Immediate Responses
Developing Leaders with Managerial Awareness
     Colleagues as Business Partners
Achieving "Management by All"
     Dissolving Labor–Management Confrontations with the Extended-Family Principle for Management
     Sharing Our Management Rationale and Company Information Enhances the Managerial Awareness of Employees
"Management by All" Gives All Employees a Sense of Achievement

Business Philosophy Is Crucial for Management
Divide into Smaller Managerial Units
     Three Requirements for Dividing an Organization into Amoebas
     Continual Review of the Organization
Determining Inter-Amoeba Prices
     A Fair Judgment
Leaders Must: Management Philosophy
     Conflicts of Interest Destroy Morale and Profits throughout the Company
     Leaders Must Be Impartial Umpires
     "Do Not Lie," "Do Not Cheat," and "Be Honest"
     Embodying the Philosophy in Management
     Place Highly Capable Leaders
     Performance-Based Pay System and Human Psychology
     Turn All Operations into Businesses That Cannot Be Imitated

How to Organize Amoebas
Subdivide the Organization and Clarify Each Function
     Functional Needs Are a Prerequisite for Forming Departments
     Each Member of the Organization Should Have a Sense of Mission
     The Subdivision of the Organization Must Satisfy These Three Conditions
     Form Amoebas Where Overall Operations Are Apparent to Leaders
     Assign Inexperienced People as Leaders and Train Them
     Organizational Subdivisions Expand Business
A Flexible Organization Adapts to Markets
     Establish an Organization That Is Well Prepared for Action
     The Leader Is the Manager of the Amoeba
     Management Rational Is Crucial for Autonomous Organization
Business Systems Administration Supports Amoeba Management
     Role 1: Creating the Necessary Infrastructure for the Proper Functioning of Amoeba Management
     Role 2: Accurate, Timely Feedback of Management Information
     Role 3: Sound Management of Company Assets

The Hourly Efficiency System: Focus on the Work Floor
Enhance All Employees’ Profitability Awareness: The Rationale behind Unit-Specific Accounting
     Use "Maximize Revenues and Minimize Expenses" to Simply Grasp Operations
     A Management Accounting Method Suitable for Work Floors
     The Difference between the Standard Cost Accounting Method and the Amoeba Management System
     The Amoeba Form Becomes Visible
     Amoeba Power Based on the Bonds of Human Minds
Creativity Comes from the Hourly Efficiency Report
     Profit Management by Amoebas
     Both Sales and Manufacturing Divisions Are Profit Centers
     Always Express Targets and Results in Monetary Terms
     Timely Awareness of Unit Profitability
     Increasing Awareness of Time Management
     Unifying Operations Management with the Hourly Efficiency Report
Fundamental Management Rules Based on Kyocera Accounting Principles
     The Principle of One-to-One Correspondence
     The Principle of Double-Checking Work
     The Principle of Perfectionism
     The Principle of Muscular Management
     The Principle of Profitability Improvement
     The Principle of Cash-Basis Management
     The Principle of Transparent Management
Key Points of Performance Control
     Hourly Efficiency Reports Should Accurately Reflect Activity Results According to the Functions of Amoeba Units
     Hourly Efficiency Reports Should Be Fair, Impartial, and Simple
     The Flow of Business Should Be Presented as Results and Balances
The Concept of Revenue Linking with Market Price: Three Methods to Recognize the Revenue of Amoebas
     The Custom-Order Method
          Adopting the Sales Commission Method
          The Flow of Figures Shows Market Movements
The Stock Sales Business Method
     No Transaction at Cost
     Sales Is Responsible for Inventory Management
     Minimize Sales Expenses
Internal Sales and Purchases
     Sales Department Commissions
     Review Profitability of Each Item
     Market Dynamism Is Formed In-House
The Concept of Expenses: Correctly Perceive Reality and Control Expenses in Detail
     Recognize Expenses at the Time of Purchase
     The Beneficiary Principle of Expenses
     Handling Labor Costs
     Subdivision of Expenses
The Concept of Time Focus on Total Working Hours: Bring a Sense of Urgency and Speedy Action into the Workplace

Fire Up Your Employees
Generate Profit with Your Own Will: Practicing Profit Management
     The Fiscal-Year Master Plan
          Aligning Our Mental Vectors by Setting Goals
     Monthly Profit Management
          Monthly Planning Based on the Annual Plan
          Overall Verification of Running Totals
          Sharing Goals within Amoebas
          All Members Need an Understanding of Day-to-Day Progress
          Execute Plans with a Powerful Desire to See Their Completion
Management Philosophy That Supports Amoeba Management
     Pricing Is Management
     Synchronizing Pricing and Cost Reduction
     A Leader’s Sense of Mission Is Essential in Adapting to Market Changes
     Project Our Abilities into the Future
     Running Long-Lasting Operations
     Achieving Strong Cooperation between Sales and Production
     Always Be Creative in Your Work
     Set Specific Goals
     Strengthening Each Amoeba
     Sustaining an Awareness of the Entire Company
     Leaders Should Take Initiative Rather Than Entrust Everything to the Work Floor
Cultivating Leaders
     The Ultimate System to Elevate Managerial Awareness
     Meetings Are Opportunities for Educational Guidance
     Set High Targets and Live Each Day with Full Effort
     Shared Awareness of the Significance of Decision-Making Criteria

QUESTIONS AND ANSWERS FOR MANAGEMENT

Q&A Case Studies from Seiwajyuku Seminars
Afterword
Index

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Author(s)

Biography

Dr. Kazuo Inamori is the director and chairman emeritus of Japan Airlines, the founder of the Kyocera Corporation, and the founder of the KDDI Corporation.

His website is: http://global.kyocera.com/inamori