Sharing Our Group Philosophy and engaging in communication are critical for success in globalizing company management and fostering a sense of unity as a group at overseas bases. Consequently, special attention is given in the development of global human resources that are to become bridge persons that can play an active role in any region of the world.
Daikin sells products in over 90 countries. Amidst the globalization of the world's economy, Daikin's Fusion 15 strategic management plan calls for accelerated globalization of our management and better communication between the head office and Daikin bases around the world.
To stay close to regional markets of the world and rapidly develop business that conforms to local needs, it is essential that we globalize management by actively promoting local human resources to executive positions and retain a "centrifugal force" in which each base demonstrates autonomy. Similarly, to maximize management efficiency of the entire Group with an increased sense of unity as a group and a corporate culture where employees enjoy high job satisfaction, it is essential that we have communication between the head office and local bases and retain a "cohesive force" in which bases pursue overall optimization of the Group by sharing Our Group Philosophy.
Daikin has already localized strategic functions at major overseas bases in areas such as product development, marketing, and financial strategy and is aiming to accelerate this centrifugal force in training local nationals to be executives at overseas bases.
At the group companies of the O.Y.L. Group, headquartered in Malaysia, we are training local nationals to be future Daikin Group executives by giving them the necessary skills and know-how in the Young Executive Program.
Thanks to efforts like these, about 40% of the presidents at overseas Daikin bases were local nationals and about 45% were directors as of the end of fiscal 2012. Of Daikin's 15 European sales bases, 13 of them had local nationals as presidents.
Manager meeting where local senior managers engage in communication with the Daikin top management
Overseas practical training program fosters individuals who can act as bridges between Japan and the rest of Daikin
At the same time Group values and direction are shared as corporate philosophy, it is also necessary to have a cohesive force that binds the organization and leads us to overall optimization. Thus, even as we allocate resources for training "global HR" that can play a role transcending country and regional boundaries, we are also enhancing opportunities for communication to gain each person's acceptance, bridging gaps between Japan and overseas bases, and instilling the corporate philosophy throughout the Daikin Group.
One opportunity for communication is manager meetings where Daikin executives travel to our main overseas bases to speak directly with local executives and managers. Another is the Daikin Business School, which has trained many local candidates to take on management positions at Daikin companies. The school was temporarily stopped but will start again in 2013.
Our overseas practical training program fosters global human resources by sending young employees to overseas bases for one year. While assisting with work duties, they learn the local culture and customs with the goal of one day contributing to the Daikin Group through a global viewpoint that transcends borders. So far, 230 employees have taken this training, and we will continue by sending 40 employees every year to Daikin bases in emerging and other countries.
We will continue to accelerate overseas business expansion by training managers who can contribute to both local communities and the overall optimization of the Daikin Group.
While recent years have seen accelerating efforts by leading international companies in Asia and the West to globalize, Japanese companies are being left behind. I feel, however, that Daikin is doing a better job than most Japanese companies at globalizing its management. For example, its solid globalization measures include putting as many local nationals as possible in key managerial positions at its overseas bases and taking advantage of the strengths and autonomy of companies that it acquires.
Daikin's core competence is nurturing employees by maximizing its fast and flat management system. This core competence must be incorporated into Daikin's worldwide group organization and human resources. By taking responsibility to do this, Daikin will show that it is a leading global company.
Director, Deloitte Touche Tohmatsu LLC