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About Amoeba Management


In the course of running the company, Dr. Kazuo Inamori created Amoeba Management as a means of realizing his management philosophy. In the preface of his book, Amoeba Management, he describes the method as follows.

What is Amoeba Management?
In 1959, I started Kyocera through the goodwill of supportive friends and colleagues. In 1984, I was able to establish DDI, the forerunner of KDDI. Both Kyocera and KDDI have continued to develop and produce high profits. The business operations of these companies are based on a sound management philosophy and precise divisional accounting system. This management method is called Amoeba Management.

From the time Kyocera was founded, I felt that the long-term development of the company required an infallible management philosophy shared by all employees, as well as a management accounting system that allowed for accurate and timely awareness of the realities of operations in every area of the organization. Therefore, while concentrating on technological advancements, product development and business activities, I put every bit of spare energy into establishing such a philosophy and management system.

As Kyocera rapidly developed and grew in scale, I earnestly longed for a business partner with whom I could share the joys and sorrows of work, as well as the heavy responsibilities of management. This led me to divide the company into small, organized units, which I called "amoebas." Leaders selected from within the company were entrusted with the management of individual amoebas. In this way, I developed many leaders with the managerial awareness — in other words, business partners.

In Amoeba Management, each amoeba unit makes its own plans under the guidance of an amoeba leader. All members of the amoeba unit pool their wisdom and effort to achieve targets. In this way, each employee takes an active role in the workplace and spontaneously participates in management. The outcome is "management by all."

I also set up an original system for precise divisional accounting. This allows an accurate grasp of the state of business in each amoeba. Furthermore, making management transparent allows everyone to understand the true state of management in each unit. Since Amoeba Management is inseparable from the business philosophy, all of the rules and mechanisms were clearly interwoven with Kyocera's corporate philosophy . . .

In addition to Kyocera and KDDI, more than 300 outside companies have adopted the Amoeba Management System on the advice of a consulting subsidiary of Kyocera. As a result, they dramatically improved business performance. I have no doubt that if top management, with a correct understanding of Amoeba Management, takes the lead and practices it in earnest, an enterprise can substantially enhance its structure.

For further information, please visit the links below.

The Objectives of Amoeba Management The Amoeba Organization The Hourly Efficiency Management System
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About Amoeba Management
  The Objectives of Amoeba Management
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About Dr. Kazuo Inamori's Management and Accounting Principles
 
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