Japan can be more confident Reading "Ambidextrous Management" January 18, 15:53

Many people may be wondering what to do in the future with the spread of the new coronavirus infection, but there are books that may be a hint.

It is "ambidextrous management" of the business book that has become a hot topic recently.

We asked the author, Professor Charles A. O'Reilly of Stanford University in the United States, about its meaning and ideas.

(Good morning Biz caster Masahiro Kishi)

What is ambidextrous management?

Ambidextrous is like having a company as a person, with your right hand doing your main business and your left hand doing new business at the same time.

However, the story is not so simple.

According to Professor O'Reilly, first of all, we have a solid core business, and we will start a new business by making the best use of the technology and assets that are the basis of it.

When we talk about new businesses, we often hear about "diversification."

However, I explain that it is completely different from the diversification that Japanese companies used to blindly engage in businesses that were likely to be profitable during the bubble era.

Professor O'Reilly

The secret of "ambidextrous management" is to identify the technologies and abilities that can be successfully applied to new businesses from within the main business.

It can also be called “targeted diversification”.

It is not productive to invest in or acquire other businesses without leveraging your own technology.

That is the situation that many Japanese companies fell into during the bubble era.

There are hints for Japanese companies!

Professor O'Reilly points out that some Japanese companies today have been practicing ambidextrous management for some time.

Professor O'Reilly

Recently wrote a treatise about AGC (formerly Asahi Glass).

We are a manufacturer of finished products such as architectural glass and automobile glass, but we are in the process of converting to a material manufacturer.

In addition, FUJIFILM has deep expertise in the fields of surface chemistry and collagen cultivated in film, and applied that technology to embark on the cosmetics business.

Although both companies have a long history of main business, they are making good use of the technology cultivated in their main business to create new businesses and generate profits while they have peaked out due to changes in the industrial structure and fierce competition with rival companies. ..

Professor O'Reilly points out that not only the two companies but also Japanese companies have the ground to practice ambidextrous management.

Professor O'Reilly In

fields such as biotechnology and chemistry, where Japan is good at, research and development takes time and innovation is difficult.

I think Japanese companies with a long-term perspective have an advantage.

I was a little happy that Japan was praised, but it is often pointed out that Japanese companies are generally less likely to innovate than the United States due to their vertically divided organizations and their willingness to take risks. It will be.

I dared to hit this point of view.

Professor O'Reilly smiled a little and said, "I think Japanese people are too strict with their relatives."

Japan has higher potential than we think, and we should be more confident.

The importance of leadership

Professor O'Reilly believes that management leadership is of paramount importance in practicing ambidextrous management.

Professor O'Reilly's

leadership is first required to have a practical and deep expertise to improve the organization.

In addition, it is necessary to take a longer-term perspective, look beyond the horizon, and be willing to take risks.

It is important to be able to do both at the same time.

On top of that, we need a leader who can withstand the “conflict” that accompanies running completely different things, the main business and the new business, at the same time.

You don't need someone with charismatic glitz.

We need leaders who can revitalize the company and attract the hearts and minds of its employees.

When trying to start a new business by utilizing the human resources and technology of the main business, there is a backlash from the executives and employees who have been in the main business for a long time, such as "Do you use valuable human resources and funds for businesses that you do not know what will happen?" May appear.

Conflict is such a conflict, but it requires a leader who can stand up to it patiently.

How to make use of ambidextrous management

Furthermore, it is said that the idea of ​​ambidextrous management is important because it is the time of the corona disaster as it is now.

Professor O'Reilly The

new coronavirus is affecting many companies and is being called upon to change their mindset and become more innovative.

I think that "ambidextrous management" will be more necessary in the corona era.

Professor O'Reilly specializes in business administration and is familiar with leadership, organizational culture, and human resources management.

Japanese companies are also doing a lot of research, and I was surprised at their knowledge and analytical skills.

Through the interview, I felt that it is important to think deeply and take on the challenge boldly while the feeling of obstruction is increasing due to the corona sickness.

First of all, firmly determine what your company's true strengths are.

On top of that, we will actively engage in new businesses while involving employees.

Actually, this way of thinking is not limited to management, but it also leads to the way of life of each individual.

It may not be easy to understand what your characteristics are, but why not start by thinking about it?

Good morning

Biz caster

Masahiro Kishi

Joined in 1992

Based on the experience of

an

economic reporter,

good morning in charge of the economic corner of Japan