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Managers completely unable to cope with wage increases

With the arrival of the inflationary era in full swing, following raw materials, labor costs are beginning to soar.

Management that has continued to rely on inexpensive labor without innovation,and have continued to rely on inexpensive labor,the market will be facing an exit from the market in the future.

The big problem is that most of Japan's small and medium-sized business owners are simply work managers, not so-called business owners.
Thus, Japanese small and medium-sized enterprises are not well managed by the management of incompetent people who have never studied management.
Such managers cannot cope with soaring labor costs,

The number of bankruptcies is at record highs in all industries.
Now is the time for a fundamental review of business operations, in other words, a shift to high value-added businesses.
Only those managers who are willing to work hard to add value will be able to survive.

2024年07月25日

The Need for a Fundamental Overhaul of Business in Small and Medium Enterprises

Beginning of yen depreciation inflation and repayment of zero-zero loans, Many industries, such as confectionery, bakeries, bars, and management consulting, are experiencing record numbers of bankruptcies.
These industries are highly susceptible to changes in the economic environment and market trends.
In particular, high prices, labor shortages, and the speed of technological innovation are major factors in bankruptcies.
However, few managers are so preoccupied with immediate business that they take drastic measures.
Companies will become increasingly selective.
Companies that want to survive in the future advise to first change the company to which they sell their products.
By changing the clientele, the products and services handled will change.
The internal structure and necessary equipment will also change.
By forcing your company into a situation where it make change, you will be able to achieve your own transformation.
But most companies will not be able to do this due to internal resistance.

Companies that want to survive should give it a try.

2024年07月23日

Importance of Affluent Luxury Tourism to Local Economies

The importance of luxury tourism for the wealthy to local economies is generally considered to be fivefold

1. increased economic impact: The wealthy have high spending power. Affluent people have high spending power, and when they visit a region, they bring significant economic benefits to businesses such as accommodations, restaurants, and tourist attractions.

2. increase the brand value of the region: They seek quality services and unique experiences. They demand high quality service and unique experiences, and their reputation enhances the brand value of the region.

3. Preservation and promotion of culture and traditions. Traditional crafts, cuisine, festivals, etc. are preserved and promoted as visitors come to the region.

4. Development of local infrastructure. High-quality accommodations and transportation infrastructure will be developed to accommodate luxury tourism for the wealthy.

5. Sustainable tourism: The tourism industry is committed to sustainable tourism. They respect the natural environment and seek ecological experiences.

 

In other words, luxury tourism for the wealthy will eliminate the problem of overtourism, It is an essential element for the growth and sustainable development of local economies.

However, the current situation is that it is very difficult to attract wealthy people to the various regions of Japan, as is the case in Niseko. First, there is the language problem of not being able to speak English or Chinese; second, there is the cultural problem of exclusion of outsiders; and third, there is the problem of a lack of accommodations and other receiving infrastructure that can satisfy the wealthy.

 

These problems will take time and money to solve, and it is not easy to solve them in rural areas where there is a shortage of human and financial resources. Under the circumstances where it is difficult to create job opportunities by building Showa-style factories, the government is required to take a major step forward to realize luxury tourism for the wealthy in terms of education and policies in order to acquire job opportunities.

 

 

2024年04月19日

Use of Contracted Employment in the Hiring of New College Graduates

With starting salaries for college graduates now exceeding 300,000 yen at large companies, competition for human resources is becoming more intense in Japan. Reflecting the above, few students from the cities are making U-turns to the regions, so the future survival of regional companies depends on how well they can recruit students who have graduated from regional universities and wish to work for regional companies.

 

However, students who wish to work for regional companies are generally conservative and tend to dislike domestic transfers as well as overseas assignments. Thus, even if they find jobs, they are not risk-takers who are willing to take on challenges without fear of failure, which is what regional companies are looking for, creating a gap between the supply and demand of human resources.

The solution to these problems is to rethink the conventional employment contracting system, in which employment contracts are made under uniform employment conditions. Specifically, we need to establish employment contracts whereby students sign a contract with a contractor and are paid a salary based on their performance. It is not realistic to conclude a contracting agreement with all new graduates, but I feel that half of them could be employed under a contracting agreement. However, few local companies have the strength to do so, and the preferred form of employment is the outsourced contracting type, in which both the company and the student bear the risk.

There are obvious reasons for students to work for regional companies despite the nearly two-fold difference in starting salaries, such as not wanting to leave their parents' homes. However, it is clear that the locally based business model will collapse in the future as the population of rural areas drastically declines. Therefore, if they continue with their current hiring style, local companies may not be able to bear the employment burden in 10 years. New approaches and employment contracts are required for local companies.

 

 

 

 

 

大卒初任給が、大企業では30万円を超えるようになり、
日本でも人材獲得競争が激しさを増してきました。

上記を反映し、都会から地方へUターンする学生は少ないため、
地方の大学を卒業し、地方企業への就職を希望する学生を
いかに採用できるかが、
今後の地方企業の生き残りに影響を与えています。

しかし地方企業への就職を希望する学生は、概して保守的であり、
海外勤務はもちろん、国内転勤も嫌う傾向があります。

従って、彼らが就職しても、地方企業が求める失敗を恐れず挑戦する
リスクテイカーではないため、人材の需給ギャップが発生しています。

これらを解決するのは一律の雇用条件で雇用契約する
従来の雇用契約の在り方を見直す必要があります。

具体的には、学生と請負契約を結び、
成果に応じて給与を払う雇用契約を結ぶというものです。

新卒採用者全員と請負契約を結ぶことは、現実的ではありませんが
半数は請負契約でもよいのではないかと感じています。

大手企業のように通常の雇用契約において初任給に大きな差をつけることが
出来れば問題ありませんが、地方企業にはそのような体力がある会社は少なく、
会社と学生がそれぞれリスクを負うという請負型雇用が望ましい形になります。

倍近い初任給の差がありながら、学生が地方企業に就職することは、
親元を離れたくないなど当然理由があります。

しかし今後、地方の人口が激減する中、地元密着のビジネスモデルが崩壊することは明らかです。

従って今までの採用スタイルを継続していては、
地方企業は10年後には雇用負担に耐え切れない可能性があります。

地方企業には、新たな取り組み、雇用契約が求められています。

2024年03月09日

Succession Planning in Small and Medium-Sized Enterprises

Succession education in small and medium-sized enterprises (SMEs) is critical to ensure the sustainable growth and continuity of the enterprise. Smooth business succession from management to successors is essential to protect the value of the company and pursue new possibilities.

Traditionally, succession within the family has been the norm for small and medium-sized enterprises in Japan, but increasingly talented individuals are taking over as managers through MBOs, third-party succession, and other means. Successor education is time-consuming and is necessary to draw up a long-term growth strategy of five years or more.

Therefore, it is important to establish an appropriate education plan, taking into consideration the period between the decision on the successor and the actual handover. Succession planning in SMEs is important to ensure organizational continuity and growth strategies. Below are five specific methods of succession planning.

1. use of external training organizations:. Identify potential successors early on and involve them in training programs. Provide opportunities for potential candidates to learn management's thinking and culture firsthand.

2. internal on-the-job training Assigning employees to work in the field to gain experience and to multiple departments will help them develop a broad perspective. It is important to enrich their experience by assigning them to new business divisions.

3. tough business experience:. Tough experiences will help them develop their judgment. Consider setting up a subsidiary or sending them to a fast-growing venture company.

4. Work experience at other companies. Have employees acquire knowledge and skills through a combination of in-house work and outside seminars. Provide training in a planned manner to coincide with future business succession.

5. guidance by predecessors:. Guidance by management is effective. It directly conveys management's thinking and judgment, and supports the growth of successors.

By combining these methods, SMEs can achieve succession planning.

2024年02月27日
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