The larger an organization grows, the more difficult it becomes to assess its performance and identify wasteful practices. Necessary improvements are not applied, and the business itself may be turned in the wrong direction. Consequently, despite devoting serious efforts to developing the enterprise, it falls into decline. There is no end of real-life examples. As an organization grows, wasteful practices proliferate. To eliminate even just a bit of waste, the organization needs to be subdivided into smaller units. For each unit, you must build a system that enables prompt and clear understanding of sales and expenditures, month by month.

Management accounting differs from the business information disclosed in fiscal accounting for stakeholders, or in tax accounting. Management accounting gives managers a grasp of the true state of management. It is used to make better decisions and manage business performance. Born from real-world practices, Amoeba Management is a management accounting system that enables managers to control their operations.

An enterprise can grow and develop if the manager has a strong will, passion, creativity, and a desire to work harder than anyone else. However, rapid growth has another side. The organization gradually becomes bloated, waste grows increasingly unrecognized, and accounting becomes a slipshod affair. In too many cases, the enterprise then begins to slide down the path of decline. For an enterprise to achieve sustainable development far into the future, sound management accounting is a must. It is essential that the system gives a real-time understanding of the true state of each operating unit, to enable prompt application of necessary countermeasures.

For Amoeba Management to function correctly, the leader must possess a high-minded philosophy and a wonderful human nature. Such a person must have a well-balanced character. A leader in Amoeba Management must be an outstanding person in all aspects of character. Such a leader can continue to develop an organization far into the future.

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