Human Capital Management Dialogue

The term human capital management seems to have taken on a life of its own, and it is difficult to see the essence of the concept. It is a given that people are important, and the very idea of enhancing growth strategies and the business portfolio has already become a commodity. While every company may have a medium-term management plan and an admirable approach, they are all essentially the same. What differentiates companies is whether they have a management team that can execute those plans and whether they have developed human resources to support that management. In this sense, we view human resource development as the shortest path for maximizing corporate value.
 

I believe that autonomy is based on having passion. The will to change society through the power of chemistry, the conviction that the Resonac Group can do it, and the passion to make sure it gets done are important. It is important to extend this passion to other units and other companies, and not just your own unit.
The Resonac Group’s style is to allow people to act freely and autonomously based on their values, with the Purpose as the key and the Values that are the mode of action to achieve the Purpose as the basis of their decisions. We are trying to ensure that this style is first thoroughly implemented as an action of the management team, and then gradually extended to all employees. We hold workshops at each workplace to discuss what the Purpose is at the workplace and what it means to demonstrate our Values, and receive feedback and clarification on how we are evaluated, so that we can make the purpose and values a personal concern and put them into practice. The ability to gain management experience in different businesses based on shared values and a shared language is a strength of the Resonac Group that also fosters employee growth.
 

Indeed, for chemical manufacturers like the Resonac Group with diverse business domains, it’s easy to imagine they might fall into vertically segmented organizations where each business unit develops its own customs and values and specializes in its own particular area of expertise. I believe that new business opportunities can be created by having a shared language as you have explained, recognizing differences in ways of thinking, and transcending boundaries. We might see a new paradigm if such challenges bear fruit and more people get excited about creating value across business units.
From this discussion, it’s clear that Resonac Group has explicitly defined its purpose and values, and is trying to spread them throughout the company and incorporate them into its human resources system and evaluations. The numerous town-hall meetings and roundtables that are held and the intent of the management team to communicate directly with all employees are truly commendable.
Many Japanese companies seem to just create and announce a purpose but fail to clarify how they aim to link this purpose with daily business operations and tasks, what kind of people they are looking for, and how to reflect this in actions and decisions, and there seems to be a lack of clear implementation in many cases. It’s quite a waste given the time and effort invested. Needless to say, to link the purpose to maximizing corporate value, it is necessary to instill it and link it to business activities. Rather than addressing a stated purpose as an obligation, it won’t empower the organization unless employees should see the potential of finding a connection to their own work and have the will to take initiative.
In this respect, the Resonac Group has a well-crafted grand design of purpose and values, and they’re addressing everything from individual actions to value judgments. I felt that this is a significant strength.
 

I believe the strength of the Resonac Group is that both the CEO and the CHRO are firmly committed to human resource development and human resource strategies. If there were just one of them, real reform would be a challenge. The reason I can commit to HR to this extent is that we operate the business as a team. Goals related to the portfolio, business reform, and strengthening the management foundation are shared at the management level, and it is possible to delegate things entirely to business unit heads and CXOs.
To return to the topic of human resources and cultural change, I have a rough idea of what awaits me in the future through my accumulated experiences. Of course, while I won’t say that everything is correct about my image of the future, we discuss talents with a shared language based on common values, and we aim to build on successes with an excellent team that demonstrates teamwork and maintains a sense of tension. I envision achieving success in 10 years by improving and adjusting our approach year by year. I will never waver from this belief in the future. Decision-making is quick with the CHRO as we share the same objectives. It’s common to discuss the next measures with the CHRO on the spot during roundtable discussions with employees.
 

The collaboration between Mr. Takahashi and Ms. Imai, who share the same values and goals, is truly wonderful. Unlike the two of you, I suspect that CEOs and CHROs in not a few Japanese companies lack a common goal setting based on shared business strategies or are unable to collaborate effectively. I believe the teamwork between the CEO and CHRO ensures that the top management’s vision reaches all employees. Once town-hall meetings or roundtable discussions are over and employees return to their daily tasks, their actions and words are heavily influenced by the evaluations of their immediate superiors. I think future challenges will involve getting leaders in the field and middle management on board. I urge you both to overcome these challenges with your teamwork skills. I am very much looking forward to your future growth.