If your organization rapidly grows and you are part of the top management team, you have to constantly find ways to better manage an ever-changing organization. One typical method is to divide your organization into divisions and departments and assign a manager to each department. Under Amoeba Management, the differences are (1) department is evenly divided into the Amoeba, a group of about 10 to 20 people, and (2) each Amoeba will have its own Amoeba-based profit and loss statement.
A regular profit and loss statement is often difficult for non-accountants to comprehend. Therefore, the Amoeba-based profit and loss statement is more simplified and is built to present added profitability per hour of each Amoeba. I call this Ameba P/L. Dr. Inamori, who invented and executed Amoeba Management believed that the essence of management is to maximize revenues and minimize expenses. Dr. Inamori exemplified this essence (he often calls this his management philosophy) in Amoeba P/L.
By using Amoeba P/L, each Amoeba’s profitability (or added value to the entire organization) is easily captured. A leader of each Amoeba can identify specific expenses to improve his/her Amoeba’s contribution to the entire organization. Since Amoeba P/L is so easy to comprehend, all the Amoeba members can understand the profitability of his/her group. This means that each member of an Amoeba can participate in the management of his/her Amoeba.
to be continued…
Koh Fujimoto, Principal in Charge, International Practice