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I have long been involved in corporate management, but I must admit that I gave considerable thought to NPF's request to provide managerial assistance to an owner-managed enterprise because it would be the first time that I had ever joined such a company. A company that has been managed for a long time by an owner has, for better or worse, a "history." It would therefore be impossible for me to suddenly say, "I am now the president," proceed to make drastic changes and still expect things to go smoothly. On the other hand, we do not live in a day and age when companies with outdated management systems can remain solvent. These were the issues that I considered when I was approached by NPF.
As you can see, I ultimately took the position. However, in managing the company, I kept in mind the fact that I was taking over the operation from the former president. Since the president also owned the company, I was thus inheriting the corporate culture shaped by him. I knew I would have to build on the strengths of that culture and improve on its weaknesses in order to change Dowa Works into a highly profitable company that was not dependent on the parent company.
I do not believe that simply replacing management with individuals from outside the company will change the way the company works. In fact, the fortunes of a number of companies have declined due to the results of mergers being carried out without well planned strategies.
I believed that what was vital was for each employee to take personal responsibility for effecting company reforms rather than expecting someone else to. I felt my role was to create a working environment that allowed each employee to implement his or her reforms. Shortly after my appointment as president, I formed a management reform project team and set 13 management reform targets based on my own thinking and NPF's advice.
Although the set reform targets were fairly common, such as revising outdated trading practices, promoting prompt and accurate integration of management information, and reinforcing inventory, cost, and business management systems, their significance lies in the fact that they are conceived and planned by the employees themselves.
We take pride not only in the fact that our steady efforts are bearing fruit and that our management performance is impressive even in the recession, but also the fact that we are now in a position, even in terms of our business management, to go public on short notice.
We were concerned that Nomura's acquisition of a complete stake in our company would upset and disconcert our employees and clients, particularly in view of its aggressive image and the fact that management control by a financial investor was not yet common in Japan two years ago. However, I was also highly aware of Nomura's policy of respecting the sentiments of our executives and employees amid its strictness. I also felt that the business management advice of their staff was accurate, brief and to the point as they are true professionals in public offering operations. Their history and ability to provide solid advice has resulted in Nomura's winning track record in M&A operations. Nomura staff members do not simply push their demands. From their continuing efforts to motivate our employees to reform the company on their own, I felt that they were using Nomura's corporate culture to its full advantage by placing a premium on existing people within the company. The staff and support team dispatched by NPF have also been well integrated into our company and are extremely reliable, and I feel that they have greatly facilitated my job as president.
