Pricing between Amoebas

There is one more point to consider in applying Amoeba Management. That is, Pricing between Amoebas. When an Amoeba organization is set up within each process, individual Amoebas will engage in sales and purchases with each other. Selling prices must be decided between Amoebas. However, since each Amoeba is determined to generate as much profit as possible, collaboration can become exceedingly difficult. Leaders must have a full understanding of the work involved in each Amoeba in order to assess the expenses and labor from a logical perspective. They need to come to a fair agreement on the selling price.
Nonetheless, even if price is decided between Amoebas in this manner, there is the question of clashing interests, and subsequent conflict. This kind of conflict results from trying to protect our self-interests. Under Amoeba Management, with the company divided into small organizations, each managed as a profit center, it becomes easier to strengthen the group's conscious efforts to obtain as much profit as possible. Originally, though, whereas each unit strives diligently to protect itself and grow, the Amoeba should also be putting every effort into maximizing profit for the company in total. In other words, harmonizing the single and the whole is vital.
Kazuo Inamori Management Philosophy Guangzhou Report Meeting (September 25, 2011) Summary
Amoeba Management Brings Sustainable Corporate Growth
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- The origin of Amoeba Management
- The three objectives of Amoeba management
― 1) Establish a market-oriented divisional accounting system ― - The three objectives of Amoeba Management
― 2) Develop leaders with managerial awareness ― - The three objectives of Amoeba Management
― 3) Practice Management by All, based on the Kyocera philosophy ― - How to build an Amoeba organization
- Pricing between Amoebas
- A leader needs a Philosophy
- Main quotes