Best wishes for the New Year.

Following the Lehman Shock last year, as we looked on in shock the global economy rapidly worsened and an outrageous situation occurred. Although I'm unsure whether it's appropriate to do so during such a crisis, I'm preparing to post My Management Policy Ver. 2.0. I began writing in April of last year and finished organizing the content six months later. To indulge in overstatement, this will be my last will and testament. Although it's not as if I'm suffering from a grave illness and have only a short time to live, nevertheless the truth is that as I was writing the feeling welled up in me that I might die at any time. Although it's a bit long, I have put all my cards on the table. It's not much of a hand, but...

→ Going Concern: My Management Policy Ver. 2.0 (How I Manage.)

I find it a bit strange myself. While reading a book, I suddenly begin to jot down notes about something that has nothing whatsoever to do with what I'm reading. Then I put the book aside and begin to ponder my notes. Every now and then the notes develop into a major topic and come together as a respectable idea.

I was motivated to write a Thoughts on Management column on the topic "Fitful Behavior" while reading lecture notes on the extremely difficult topic "The Aesthetic-Philosophical Manager." Clearly there is no direct cause-and-effect relationship between these lecture notes and this Thoughts on Management topic. I merely reacted to a certain phrase written in the lecture notes. When I thought about why this happens, it occurred to me that I probably have several pending questions in the back of my mind, I'm provoked by a certain word or phrase and have a flash of inspiration, and my thoughts instantly come together in words. As a matter of fact, I rather enjoy this type of fitful behavior. Allow me to add in the interest of protecting the honor of the lecturer that this phenomenon doesn't occur only when I'm reading boring writing.

Monthly senryu:
Sometimes thinking is better than reading.

In the May 2003 Thoughts on Management column "Work Plus Something," I wrote in a self-important, disparaging way about how the founder of Obun Printing devoted his entire life to his work. In the intervening years, however, I've become aware that things may have been different than they seemed at the time and changed my way of thinking. Accordingly, I have once again written down my thoughts under the title "Work and Play."

We may say that work is our bread and butter, something that must be done, something we wouldn't want to do if only we had enough money to avoid it, and so forth. However, we hear people like fashion models and actresses talk about how enjoyable their work is. We tend to think that of course they enjoy their work because they're pampered and flattered and earn enormous sums of money. I used to think that way myself. However, now I find myself in an interesting predicament in that now I myself can say without reservation that my work is enjoyable. Because I'm only a small business manager, I'm neither pampered nor flattered and my income isn't so different from that of our employees. Even so, I enjoy my work.

Enjoyable things are generally called "play." However, when invited by friends, I sometimes find myself going bowling or singing karaoke, activities I'm not eager to pursue, against my will. Such situations aren't really play because the activity isn't enjoyable to the person involved. On second thought, if what people call work is enjoyable to the person involved, can't it be called play? The point is, it all depends on the individual. If a person enjoys work, then work becomes play. As long as you're going to work, why not enjoy work and make it play?

Monthly senryu:
If it's fun, even work is play.

The following is the text of my remarks to the employees at a morning meeting held on the first day of fiscal 2009. I have updated the information and am posting the remarks nearly in their entirety.

President and CEO
Ryushi Wada

The bankruptcy of Lehman Brothers last September triggered a steep tailspin in the world's financial markets. Even mighty Toyota posted a loss in the fiscal year ended in March, following record-high sales and profits the previous term. We are in what has been called a once in a century financial crisis, and the situation threatens to become dire. In short, an unprecedented economic situation is occurring on a global scale.

What action should we take in these circumstances? I believe that it is precisely in times such as these that we should act in accordance with fundamental principles.

Principle No. 1: Do work that pleases customers.

Since those of you in the Sales & Customer Service Divisions are in direct contact with customers every day, it is obvious to you whether customers are pleased or angry. However, could it be that those of you working in other divisions who do not come face to face with customers tend to perform work strictly in accordance with the job order instead of being mindful of doing work that pleases customers? If my supposition is correct, the sentence "Do work that pleases customers" becomes a mere slogan and ceases to be a living, meaningful expression. That is to say, I ask those of you whose work does not bring you into contact with customers to deliberately bear in mind that each task you perform is for the purpose of pleasing customers.

Principle No. 2: Maximization of sales, minimization of costs

The maximization of sales is the responsibility of the Sales & Customer Service Divisions. I ask the employees in these divisions to apply all of your wisdom and intelligence to this task. As you go about your work, I urge you to remind yourself of Obun Printing's strengths and to proceed with great confidence. No other printing company has the abundance of appealing products that Obun has. Also, each division involved in production is a competitive advantage of Obun Printing: there are no weak organizations in the company. If, by chance, you are a Sales & Customer Service Division employee who feels that our products aren't selling as well as you had hoped, that means that you yourself have a problem. The reason for the disappointing results may be that you apply insufficient ingenuity in your sales methods, that you are not communicating enthusiasm to our customers, or that you don't understand what our customers want. You should humbly reflect on the situation and modify your thinking and behavior.

The minimization of costs is the responsibility of those of you who work on the front lines of production. As you work, do you consider how to produce things inexpensively? If you take an excessive amount of time to perform your work, that means you are increasing costs. If you are not purchasing stock with profitability in mind, you are increasing costs. If you are not using materials carefully, you are increasing costs. Are you using more electricity, gas, or water than necessary? Are you purchasing things you don't use immediately? Bear in mind that do-overs are the biggest cause of cost increases. Although it may seem somehow backward looking to talk of cost cutting, that is a major misconception. A cost reduction of ?10,000 is a profit increase of ?10,000. That is to say, a cost reduction of ?10,000 per month is equivalent to annual profit of ?120,000. By purchasing 10 kilograms less ink per month, you can contribute ?120,000 in annual profit.

If you do a job over again, no matter how small the job, the company incurs tens of thousands of yen or more in costs for materials and labor related to CTP reoutput and in costs for ink, printing, and binding, not to mention the cost of production control, shipping arrangement, and distribution. This means that if you do something over, although your own income doesn't change, the company incurs a significant loss. Of course, continuation of this situation will result in a vicious cycle: the company won't earn profits and consequently won't be able to increase wages.

Principle No. 3: Provide good products inexpensively.

While this is something that I haven't stressed heretofore, I have mentioned it time and again when talking about UNIQLO from the standpoint of a purchasing customer. I'm a UNIQLO fan. That's only natural, since they offer good products at low prices. They offer a wide selection of designs, their stores are clean, and there are no problems with customer service. What's not to like?

Low price competition is likely to further intensify from here on because "drowning" companies will appear one after another. By drowning, I mean on the verge of bankruptcy. We will have no choice but to compete against such companies, which means we are likely to see ridiculously low prices, unprecedentedly low prices. We will of course refuse to engage in price competition involving prices below variable costs (costs proportional to sales volume). Still, I think that on a case-by-case basis we will find ourselves offering competitive prices even in circumstances of competition involving ridiculously low prices. However, even in such cases, if we do not consider the future business relationship and attract customers to our strengths, we will not be able to get beyond mere low-price competition.

Simply put, this means that in order to further disseminate emotional value printing and avoid entanglement in mere price competition, we will compete by offering emotional value printing, available only from Obun, at prices lower than the current level. For us to make available high value-added printing at more affordable prices is, quite simply, to devise a UNIQLO approach.

Principle No. 4: A blue ocean strategy

This isn't something that just anyone can accomplish. A strategy of competing on price alone is called a "red ocean strategy." Although this is a futile undertaking, it is unavoidable for companies that can compete on low price alone. By contrast, a "blue ocean strategy" is a strategy for competing on the basis of things that no competitor can accomplish or produce. To Obun, these things are online business cards, online publishing services such as blog binding, and emotional value printing, as exemplified by urushi lacquered printing and erasable paper. The further reinforcement and enhancement of these services is a blue ocean strategy for Obun Printing.

We are rapidly expanding sales channels for erasable paper. Tokyu Hands has decided to offer the product at all stores, and we have also acquired distribution at many university co-ops. Companies that operate customer service centers have purchased the product.

Varnishes having new functions are set to debut soon. In the stationery product category, we are developing own-brand products. In online publishing as well, this fiscal year we will launch new services to follow the blog binding service. We are currently preparing other services to follow. In this way, we are engaged in a flurry of development.

I want as many employees as possible to participate in this development. The first step of development is ingenuity. And we will gradually complete preparations to enter the development phase. I hope that you will further explore and develop your individual potential by applying originality and ingenuity. You will certainly be able to accomplish great things if you believe that you can.

2009 will be a year of huddling against the storm on a global scale. Although we, too, will huddle in areas where huddling is called for, let's also give our imaginations free reign and apply creativity and ingenuity. In this way, work will become more enjoyable, and you will consciously experience personal development and improvement. It is my fervent hope and wish that each of you accomplishes great things.

Monthly senryu:
Believe that you can become an exceptional person.

First of all, let's consider what can be called growth. Growth is a form of change, and visible change occurs when we become aware of something and that awareness spurs us into action. This means that the first step toward change - that is, growth - hinges on whether or not awareness occurs. We then take action and become able to accomplish something. When this chain of events happens, it can clearly be called growth. Also, if we can point to something that we have just begun, this, too, is praiseworthy growth. Accordingly, we should include things newly undertaken among the indicators of growth. In the growth process, praising ourselves for the pursuit of growth is an important means of accelerating that growth. In other words, an accomplishment worthy of pride is another sign of growth.

Now then, with regard to confirmation of growth, the most important thing is self-confirmation on the part of the person making the effort to grow, because it is gratifying and a source of self-pride. Next, third-party confirmation - whether from a superior or a colleague at work, or from a family member or friend - is also important. Growth that wins recognition from these people brings greater joy than growth that we recognize ourselves. Surely there is nothing so wonderful as this. In this way, endless growth continues.

Monthly senryu:
If you have awareness, that's the first step of growth.
If you have awareness and act, you win admiration.
If you act and produce results, you are a hero.

I believe that quite a number of people have found themselves thinking, "It's too late now to ask about something as basic as that." Since I'm a rather shameless fellow, I have no qualms about asking about something I don't know. Although it's true that I look into things myself when I feel that they are so simple that asking would be embarrassing, when greater understanding is required, I come right out and ask.

If I happen to think that something is way over my head, I ask about it without shame or inhibition. That's because, after all, I feel a powerful desire to know and understand. There are things that seem interesting but that we can't understand, things that we simply must understand at all costs, and things that must not be left ambiguous. At all events, let's clearly identify such things and clear the air. The most important thing is to ask about things straightforwardly, without being embarrassed about it being too late.

Monthly senryu:
It is pretentious to save face with the excuse 'It's too late now.'

Human beings are born unequal. To start with, I wasn't born in Japan on my own volition. I might just as well have been born in a country at war or in circumstances of having to struggle for my daily food. However, we are fortunate not to be in such dire circumstances. At the very least, this is true of the people reading these Thoughts on Management. With that in mind, I would like to reconsider the subject of equality. What is the most equal thing in all the world? I think that it is time. All of us, regardless of our age, sex, or nationality, are equally given 24 hours per day. What's important is how we use our allotted time.

I tell the employees that our lives change according to how we use our time. That's only natural. Although after only a week there may be no difference between a person who seeks to make the most of the time available and a person who fools around, there will certainly be a difference as year after year pass. Making the most of time increases the value of life. It's up to each individual to decide whether or not to make the time equally available to all of us rich and fulfilling. We can't blame failure in this on other people or society. Time is the only thing that can never be too rich. Let's all lead fulfilling lives.

Monthly senryu:
Life is about how we spend our time.

Last month Obun Printing exhibited at two exhibitions held at Tokyo Big Sight, as we did last year: the International Stationery and Office Products Fair Tokyo, commonly known as ISOT, and the Tokyo International Book Fair. Also, this year for the first time we participated as a member of the EPC (Excellent Printing Community of Japan) Cooperative Business Association. Since the joint exhibitors were all individualist printing companies, visitors to the large booth tended to go around examining each item, and more than a few spent long periods of time in question and answer exchanges. The reaction gave me renewed appreciation for the benefits of sharing a large booth among multiple companies.

In the Obun Printing exhibition lineup for this year we included a black version of the erasable paper that we exhibited as a pre-release product last year and launched in the autumn. We reflected emotional value printing characteristics in book covers, exhibiting twelve unique designs each in paperback edition and paperback pocket edition sizes. We also displayed modified erasable paper varnish for use with UV inkjet printers and large-format output (1.0 x 1.6 meters) as a pre-release product. UV inkjet printers can print each individual sheet using different electronic data and coat materials other than paper with erasable paper varnish. This makes it possible to reproduce, for instance, even the information written on school blackboards. Furthermore, Obun may be able to sell the varnish to UV inkjet printer manufacturers.

At the Tokyo International Book Fair, we focused on our service for making blogs into books and a book reprint production service. A common feature of these services is the capability of producing even a single copy of a book. The main attractions at our exhibit this year were the evolution of the typesetting program used to make blogs into books and the newly developed capability of editing PDFs prepared using MyBooks.jp (a website that provides a blog bookbinding service). In book production, typesetting and page composition quality exerts a major impact on workmanship. At MyBooks.jp, previously one type of body text format was available for vertical typesetting and one for horizontal typesetting. Although this was adequate for the blog format, it was not possible to use two columns for a slight change of appearance or to change point size. Now, however, simple editing functions and a wide range of typesetting options are available on MyBooks Editor, which has dramatically expanded freedom of expression in text layout editing and cover design. Be sure to look forward to the coming limited release to beta users.

We began participating at this exhibition last year and have learned that development activities undertaken for the purpose of the exhibition give rise to greater power than usual and a feeling of oneness among those involved with the show. A post-exhibition party we held the following week was a festive affair, and even I drank a bit more than usual. Next year we should be able to create an even more interesting exhibit. I invite you to look forward to good things to come.

Monthly senryu:
This year's exhibitions once again brought a bang-up reaction.

Business necessarily entails logic. Without logic, discussion of sales strategy and management strategy is not possible. Thinking grounded in economic rationality is essential for attaining profitability. That being the case, you may think it incongruent for me to say that illogicality and irrationality are also essential in business.

The word "businesslike" does not appear to allow room for any sort of illogicality or irrationality. However, when we consider that business is a human activity, it seems only natural for it to involve these human traits. From the start, people have all sorts of irrational aspects, and we often see irrational things. This means that illogicality and irrationality are given civil rights of a sort. Given that, what is illogical and what is irrational?

I think that to a business manager, the greatest illogicality is likes and dislikes. Likes and dislikes come in many forms, the like or dislike of people, of business, and of certain places among them. I often say, "Business managers are capricious." My view on this has been shaped by frequently hearing them say things like, "I just can't bring myself to like the president of that company. For that reason I don't want to do business with them." Or, someone might deliver a parting shot such as, "I couldn't possible engage in such unappealing work." Also, the excuse "I just wasn't lucky" grates on my ears. People some say with unconcealed jealously, "You have all the luck!" Any way you slice it, such gut feelings are a far cry from logicality. Within an organization, people will say, "I just don't get along with that guy." As a positive comment, someone might say, "That guy's highly motivated." Business is conducted by people brimming with contradictions, elusive people, and evasive people and is controlled by mysterious things beyond human understanding. That's why I keenly realize that business is deep, mysterious, and highly interesting.

Monthly senryu:
Business is a cross between logic and illogic.

I decided to jot down the things I do as a business manager. This fiscal year, the shacho-juku (encounter with the CEO) is scheduled to be held 100 times. The theme for the first half is "Think about the essence of things," and the theme for the second half is "Think about the corporate culture." I transmit a weekly message to employees of leader rank and above, a practice I began in May of last year. The theme, continuing from last month, is Peter Drucker's five questions for managers. The format is that after the employees consider the issue, I weigh in with my views. I hold friendly lunch meetings in my office during which I engage in one-to-one discussion for two hours with an employee over convenience store box lunches. I've enjoyed a box lunch with certain employees on more than ten occasions. In addition to the once monthly management meeting, I hold extra three-hour meetings to develop the next-generation management team based on the theme "What is necessary to ensure the growth of Obun?" We have just finished the third of five planned sessions this fiscal year. I lead discussions concerning "The Obun brand statement" at morning meetings, afternoon meetings, and evening meetings held once monthly at three locations for the purpose of changing attitudes and behaviors.

The reason I engage in these activities is simply that "structural reform" is a matter of the greatest interest to me. "Structure" refers to the corporate culture itself. Although the word "reform" resonates well with managers, it causes tension for employees. It isn't desirable to instill tension without reason. Accordingly, I use the term "corporate culture."

Although I vaguely understood that a good corporate culture is necessary, what I previously spent time on was individual approaches to key employees. Needless to say, this is very important. Nevertheless, when I thought at the same time about what could be done to create a good company, I arrived at the notion of developing a good corporate culture. Although it is a task that requires time and energy, I do it because I consider it an important part of a manager's work. Still, the fact of the matter is that it is enjoyable, rewarding work.

Monthly senryu:
CEO encounter - an exchange of thoughts and feelings with the employees

The term "corporate culture" refers to the demeanor and conduct of a company's employees or to language and behavior found here and there within a company. It is also called the corporate climate, but it isn't really a climate. That's because climate is something that occurs in nature, while culture is something created by humans. Although I've digressed, the point is that the corporate culture is decided naturally according to the type of employees a company has. If a company has nothing but earnest employees, no one will slack off. To the contrary, in a company that has lots of frivolous employees, everyone will pretend to work. If a company has lots of audacious employees, they won't engage in trivial matters. In fact, the matters in question might not be at all trivial. Accordingly, the corporate culture can be said to be a characteristic of the individual organization.

What's astounding and frightening is the fact that when people think a certain way and act a certain way, it's because the company's culture allows it. Corporate culture automatically acts on language and behavior. Put another way, this is "tacit power."

Well then, specifically what is the nature of the corporate culture of Obun Printing? I feel that it can be described using terms such as "sincere," "modest," "the desire to please customers," "strict observance of delivery schedules," "desire for growth," "willingness to accept challenges," and "a thinking organization." However, there are aspects that I want to more fully nurture and develop. In other words, I want to create a better corporate culture.

As a matter of fact, in encounter with the CEO sessions held since September we have taken up the subject of corporate culture. I have listened to the unvarnished opinions of the employees who work on the front lines of the business while simultaneously commencing discussions of my views. We divide the 28 participants into seven groups and hold three ninety-minute sessions. I first made the rounds of the groups, and then took part in the second session. Observing the earnest involvement of the employees and hearing their on-target questions and answers, I came away with renewed appreciation for the high level of awareness of Obun Printing's employees. The current sessions are for head office employees, and in the coming fiscal year we will begin holding sessions with the employees at the Sakado Factory. I think that this encounter with the CEO topic will take another full year to complete.

We will reflect the opinions of many employees, as we did at the time we formulated the corporate values, discover a motto that expresses what it means to have a good corporate culture, diligently and steadily accumulate words and deeds, and heartily recognize and praise the change that occurs when someone has undertaken a new activity. Through this process, an even better corporate culture will be developed over time. I'm convinced that it is precisely such change that is the most precious change of all.

Monthly senryu:
A good culture diligently and steadily fostered by all

The other day I found a copy of an Obun Printing in-house magazine published in 1961. Naturally, the opening article was by Obun's founder, my father. The article was entitled "Foolish thinking can also be fun." While glancing through it I came across a very interesting comment. "Thinking is a part of everyday life." The reason why this is so interesting is because for the last two or three years now, whenever anyone has asked me what my hobby is I've replied without the slightest hesitation, "Thinking."

My father passed away in December 1999. I never imagined that I would ever feel as close to my father as I do now, a whole ten years after his death. At the age of 61, I am an energetic writer, and talker. I do this out of the sheer desire to communicate my ideas.

I often clashed with my father. If you said that such a thing wasn't that unusual, that would be the end of it, but it was difficult for both of us. (I heard that he often complained to his acquaintances about it. How he was embarrassed to have such a smart aleck son.) Looking back on it now, if he thought it was such a serious matter, I wish he had spoken about it and written about it more openly. Because if he had, I'm sure we would have been able to understand each other better.

The fact that I'm writing and talking so energetically now is not out of regret that my father didn't do this for me. It's because nothing would be as wonderful as if, after I lose the ability to write or to speak, or after I depart this world, someone at some time were to find something I wrote and think, "Ah, I see now," so that at least one person would understand and find it useful to some extent.

My father was born on December 7, 1921 and passed away on December 30 ten years ago. I've tried to organize my thoughts to mark the anniversary of his death.

Monthly senryu:
If it were now, I'm sure we could understood each other better