Amoeba Management includes the three objectives I just described. In actually using it, there are a number of points to bear in mind. Let us begin by considering “How to build an Amoeba organization.”

The first point is, “Clarify unit income and expenditures, and ascertain whether the unit is able to function as an independent profit center.” In other words, the unit needs to have clear income, and clear expenditures used to produce that income. The organization is divided into units that meet these conditions.

The second point is “Subdivide the organization into units that can function as viable businesses.” Subdividing into units that function in the same way as individual, independent companies encourages creativity from the leaders, and stimulates a feeling of motivation.

The third point is “Ability to accomplish the original objectives of the company.” For example, an organization may satisfy the conditions needed to operate as a profit center. However, turning it into an independently functioning Amoeba may, in some cases, create obstacles to managing the overall company in a consistent way. In these cases, the organization should not be turned into an independently operating Amoeba.

Kazuo Inamori Management Philosophy Guangzhou Report Meeting (September 25, 2011) Summary