Management

Principle 5: Maximize Revenues and Minimize Expenses

Measure your inflow and control your outflow; don't chase profit, but let it follow your effort.

Conventional business wisdom suggests that as sales increase, expenses will rise in tandem.

However, this is a misconception. Striving to maximize revenue while simultaneously minimizing expenses through constant innovative efforts is what leads to high profitability.

To put into practice the principle of "maximize revenues and minimize expenses," it is essential to have a management accounting system in which performance is transparent in real time across the organization, and everyone can participate in management. "Amoeba Management" is a system that Kyocera has painstakingly developed since its early days to serve this purpose. Building such performance-enhancing systems and structures is one of the crucial roles of a business manager.

Paraphrased from the 21st Seiwajyuku World Convention (July 18, 2013)