Amoeba Management: The Dynamic Management System for Rapid Market Response, 1st Edition (Hardback) book cover

Amoeba Management

The Dynamic Management System for Rapid Market Response, 1st Edition

By Kazuo Inamori

Productivity Press

164 pages | 11 B/W Illus.

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pub: 2012-08-20
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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 allwhereby 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

About the Author

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

Subject Categories

BISAC Subject Codes/Headings:
BUS053000
BUSINESS & ECONOMICS / Quality Control
BUS097000
BUSINESS & ECONOMICS / Workplace Culture
TEC020000
TECHNOLOGY & ENGINEERING / Manufacturing