Feature Article 3
|Management Based on the Kyocera Philosophy (Kyocera Management and Accounting Principles)|
|Management Based on the Kyocera Philosophy (Amoeba Management)|
The Kyocera Accounting Principles have "seven principles" as a practical guideline to help correctly understand the status of management and thus enable further growth.
|1. Principle of Cash-Basis Management|
|The Principle of Cash-Basis Management describes a simple management style that focuses on the flow of cash. Modern-day accounting has become so complex that it is difficult to see the actual condition of a company. Returning to the original intent of accounting, which is to accurately convey the state of business, we should make management decisions focused on the most important aspect: cash flow.|
|2. Principle of One-to-One Correspondence|
|In the daily course of business, both money and goods flow constantly. Any movement of money or goods must be accompanied by the correct documentation. We call this the Principle of One-to-One Correspondence. Strictly following this principle allows the accumulation of daily invoices to accurately correspond with the corporate financial totals. This, in turn, will reflect the true financial status of the corporation.|
|3. Principle of Muscular Management|
|If we were to compare a corporation to the human body, the company should strive to maintain a lean, athletic physique with no excess weight. We call this "Muscular Management." This principle is the backbone of Kyocera's accounting.|
|4. Principle of Perfectionism|
|The fourth principle is "Perfectionism" and refers to the basic posture of management that aims for perfection in every detail of the business, without any ambiguity or compromise whatsoever. Especially in accounting, 100% accuracy is required.|
|5. Principle of Double-Check|
|The fifth principle is "Double-Check," a mechanism that helps prevent people from committing fraud, and sustains the company's integrity beyond accounting to many other aspects of business. Receivables and payables must be cross-checked by different "pairs of eyes." This double-check system secures the integrity of our work and the soundness of the organization.|
|6. Principle of Profitability Improvement|
|The most important mission of a corporation is to improve profitability. Kyocera adopted the Amoeba Management System, which is a "small profit center" system, so that all employees can contribute to improving profitability.|
|7. Principle of Transparent Management|
|It is important to disclose the true condition of the company openly to employees in order to build strong trust between management and the rest of the work force.This is the reason Kyocera practices transparent management and shares the company's true financial condition, not only with top executives, but with all employees.
Moreover, a publicly owned corporation has an obligation of full disclosure, accurately conveying its true financial condition externally to shareholders and investors as well. Fair disclosure to the outside is thus indispensable.
In the Kyocera Group, a copy of the Kyocera Accounting Pocketbook is handed out to all employees. Various activities for understanding and permeation of the Principles are conducted depending on the condition of each workplace, such as reading in turn in a morning meeting or a workshop by the department or Group company. Furthermore, education on the Kyocera Accounting Principles is provided by hierarchy so that employees can learn those most appropriate for their post or role.
|Group-wide Actions||Actions by department or Group company||Holding of education by post|
|· Distribution of the Kyocera
· Reading in turn in morning meetings
|· Holding of study meeting where people in
managerial roles speak about their own
· DVD viewing related to accounting
· Study meeting utilizing internal portal site
|· New employee training
· Third year training
· Promotion training
|Holding a project exhibition on the Kyocera Accounting Principles|
|Kyocera held a project exhibition designed to provide a visually easy-to-understand explanation of the Kyocera Accounting Principles with specific case examples at The Inamori Library, a training facility adjacent to the headquarters building, for about three months from February to April 2017. The exhibition was open not only to Kyocera employees but also to the general public who want to know more about the Kyocera Accounting Principles. The exhibition was composed of panel exhibits, an audiovisual corner, and distribution of cards and episode brochures explaining the basic concept of the Principles. Various events were also thrown during the exhibition period, including lectures by accounting managers and external lecturers and a viewing session to see video lectures by Kyocera founder Kazuo Inamori. A total of over 1,400 visitors visited the exhibition.|
|The Inamori Library|
|· I learned the Principles from a different viewpoint, which helped me a lot.
· I felt the things all Kyocera employees should understand were compiled in a very easy-to-understand way.
· I listened to the lecturer and realized how the Kyocera Accounting Principles were incorporated into the
Comment from Education Staff who Planned the Kyocera Accounting Exhibition
We held the Kyocera Accounting Exhibition for about three months from February 2017 at The Inamori Library to provide Kyocera Group employees with an opportunity to obtain an in-depth understanding of the Kyocera Accounting Principles, a theme stated in the management policy. The contents of the books written by Inamori were expressed with illustrations and graphics and used in the exhibitions and explanation sessions so employees could better understand them. The essence of the exhibition was summarized in the reference materials or teaching materials for distribution to Kyocera sites and domestic Group companies.
Many participants praised the exhibition during the period, and we realized anew the significance of conveying to Kyocera employees as well as many people the belief of Inamori that "Without understanding of accounting, one cannot manage a company," which is embedded in the Kyocera Accounting Principles. Currently, we are planning to do a similar activity in China and spread to other Group companies outside Japan after that.
We hope Kyocera employees as well as our stakeholders have a better understanding of the management technique of the Kyocera Group.
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