Management

The first objective of Amoeba Management is to establish a market-oriented divisional accounting system. The fundamental goal of business management is to maximize revenues and minimize expenses. In Amoeba Management, the entire organization must be divided into small units or "amoebas." As independent profit-and-loss centers directly linked to their respective markets, each amoeba manages its own profitability, allowing it to respond promptly to market changes. For this purpose, the following mechanisms are necessary:

1. Each amoeba pursues profit by practicing the principle of "Maximize revenues and minimize expenses;"
2. Each amoeba is an independent accounting unit that can buy and sell with other amoebas; and
3. Each amoeba makes monthly plans and records results using the Hourly Efficiency report, which is meant to be as easy to understand as a household budget.

Words from Inamori

"The Amoeba Management System that I created through my real-world management experiences divides a large organization into small, autonomous groups. These smaller units are managed by designated leaders, thereby facilitating a collaborative management style throughout the company.
By using this approach to management, even companies that previously struggled can transform into high-profit businesses. It allows companies to see the organization's performance in real time and make more effective management decisions."

Source:Amoeba Management (Nikkei Shimbun Publishing)

Related Information

• Maximize Revenues, Minimize Expenses
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