Rebuilding the organization through Amoeba Management
Rebuilding the organization through Amoeba Management also proved very effective. In my view, to achieve stable operations in an airline, a mechanism for understanding the profitability of individual routes and flights is essential ― in short, a management accounting system. I therefore worked on building such a system. Amoeba Management is an original system I had put together at Kyocera. I set about rearranging the system so it could be applied just as effectively by an airline. As a result, information on the profitability of all JAL routes and flights now becomes available the following day. We established a finely detailed management accounting system, unmatched by any other airline in the world.
In other words, JAL executives and employees experienced a transformation of awareness. As well, the new organization and accounting structures gave them new ways to apply their creativity while they worked, based on real-time awareness of their results as shown by the management accounting system.
Figures for each department would be presented over three days during a management meeting held each month. While listening to the presentations, I offered management guidance, suggesting to the presenters what I believed their departments should be doing, and giving instructions on the next steps to take as leaders.
Introducing this profit management system stimulated greater profit awareness among employees, and led to fundamental changes in the organizational climate. This led to significant improvement in the management of Japan Airlines.
The 20th Seiwajyuku World Convention (July 19, 2012) Summary