What motivates Gelivable to adopt the business philosophy of Kazuo Inamori?

In the premises of Gelivable’s offices & factories, and in our various presentations, you will notice that Mr Kazuo Inamori is always mentioned. You may be wondering what is the relation between Gelivable & Mr Kazuo Inamori? What accounts for our strong interest in his business philosophy?

Since I encountered Mr. Kazuo Inamori's works by chance in 2011, to joining Guangdong SEIWAJYUKU in 2013, and then to advocating the learnings of Mr Kazuo Inamori's business philosophy in the company in 2015. I believe that I am leading Gelivable and my team in the right direction. If you were to ask me, what did I learn from Kazuo Inamori? I would say this sentence summarize my answer "Enhance personal development and expand business operations". What does this sentence mean? It may not be easy to understand some philosophical words, so I shall take reference from what the company is doing to explain!

Enhance Personal Development

1. We have defined the purpose of the company's business which is to "Strive to make all employees happy both materially and spiritually!” & “We must contribute to the progress and development of mankind and society!” These two main purposes are placed at the forefront of our business philosophy, Mr Kazuo Inamori emphasizes that a business must possess a distinct purpose. If the mission of the company outlines what it aims to achieve, then the business philosophy explains the rationale behind those objectives.

2. The company established the "Lovely Fund" in 2014, which is managed by a committee independent of the company. This committee composed of three representatives, a chairman and two members elected by the employees themselves. The company allocates a monthly budget of RMB 1,000 as a contribution to the Lovely Fund. In addition, the authority of the company's scrap sales is managed by the committee, such that the “Lovely Fund” earns part of its income through this scrap sales. In addition, they also come up with a half-yearly garage sales event to encourage staffs to auction off their unused items, with the proceeds voluntarily donated to the Lovely Fund. For staffs with culinary skills, they can auction their lunches/breakfasts for donations. And if the company's water and electricity bills are lower than budgeted, the savings will also be channeled into the Lovely Fund. Over the course of nearly seven years, Lovely Fund has provided support to numerous colleagues facing challenges, effectively addressing their urgent needs during critical times. Birthdays of the staffs ’parents were also taken care of by the Lovely Fund. Gifts were purchased & sent to their homes expressing the filial piety of the staffs. In 2016, Lovely Fund has an improvised strategy, which is to serve the society outside the company, to spread the love to our communities and remote mountainous areas, and give it to more people in need.

3. For staffs to promptly enjoy the benefits of the company's growth. A virtual stock incentive mechanism is implemented. As long as staffs who have passed the probation period can purchase the company shares within a stipulated timeframe, and dividends will be distributed according to the company’s performance. If the company did not achieve the desired performance, an interest that is several times higher than the bank is still guaranteed. For staffs who had contributed to the company in a significant manner, there is a virtual stock distribution plan which does not require them to contribute a single cent, and they may still receive the company's year-end dividends. Simultaneously, a partnership system was introduced as well, and now 9 outstanding colleagues have officially become partners of the group.

4. We implemented a horizontal organization setup to encourage staffs to develop their own personal growth besides fulfilling their primary job duties. Many staffs have experienced unexpected growth through this setup, and these amazing changes can be felt by the team. Through comprehensive job rotation, the company discovered the strengths of its employees and build up a pool of talent reserves.

5. In the course of pursuing for excellence, we value the outcome achieved as well. The company formulated a PK mechanism for individuals and teams. Within the agreed rules, everyone learns from each other, surpasses each other, sees the shortcomings of each other, and finds inspiration. Champions receive recognition for their achievements, while the runners-up are motivated to contribute to the company's dynamic environment.

6. We adhere to glass-like transparent management. All the company's financial data are released to everyone in real time. In the daily report, the order receipts /shipments/gross profit situation of 2 days ago are presented. Net profit achieved are presented every month, and financial briefings are held every quarter. The objective of this approach is to ensure that all individuals feel a sense of ownership in the business, with their contributions clearly represented in the financial data.

7. We prioritize the well-being of our staffs. From the initial presentation of flowers or books upon their arrival at the company to the collective celebration of staffs' birthdays, we ensure a supportive environment. During significant holidays, we extend greetings to the families of our staffs on behalf of the company. Whether it involves providing quilts or soup pots, we strive to fulfill the wishes of our staffs. When staffs are recognized for their accomplishments, we send congratulatory messages and certificates directly to their families, allowing them to share in the pride of our staffs' growth and achievements.

Expand business operations

1. We adhere to the principles established by Mr. Kazuo Inamori, emphasizing the importance of hard work over speculation in generating income. Our commitment to industry has fostered customer trust and enabled us to achieve reasonable profits through the production of high-quality products.

2. We provide comprehensive staff management and fully grasp the concept of "pricing is management" as emphasized by Mr. Inamori. Even before any official project kickstart with the customer, our teams work together to fully comprehend the customer's needs at the stage of quotation. We meticulously consider solutions that can generate profits for our clients and facilitate future serial production processes. We recognize that customers’trust & confidence in our capabilities are essential for fostering greater growth opportunities.

3. Since 2015, we have actively advocated for the income-generating proposal system, yielding positive outcomes to date. This initiative not only reduces costs for our clients but also enhances the company's operational efficiency. Additionally, we have secured nearly 30 national invention and utility model patents, which contributed to our recognition as a national high-tech enterprise in China in 2019.

4. The organization was segmented into three small, amoeba-like teams, with each team tasked with overseeing distinct market segments. By fostering trust and implementing decentralized management, we are able to independently assess operational outcomes and promptly reward team members. These modifications have been instrumental in advancing the diverse business sectors of the company.

5. We are committed to establishing a robust financial system. Beginning in March 2015, we implemented a range of measures aimed at identifying and removing fraudulent customers while enhancing our credit management practices. This initiative successfully reduced both bad and delinquent debts to zero by 2015 end. Additionally, we are in the process of creating a "capital reservoir," which mandates that 10% of our monthly profits be allocated as cash reserves.

6. Inventory control is key. In the past, focus on price advantages overshadowed the purchase quantity control, leading to issues with inventory management. Today, only the required quantity is procured, while this direction may not look economical, but it allows a more efficient use of funds and minimizes material waste.

7. 1 to 1 principle. ERP was implemented in 2010; however, it did not achieved the desired 1:1 ratio. Initially, we attributed this shortcoming to inadequate execution by our team members. However, after examining Mr Inamori's philosophy, we realized that our challenges stemmed from a lack of understanding of effective business methodologies and insufficient process planning. While there remains a disparity in achieving optimal performance, the team now possesses a clear direction and is diligently striving to learn and adapt.

Above were some actions that reflect our diligent efforts to integrate Mr Inamori's philosophy within the company. We are confident that Gelivable, guided appropriately by this philosophy, will undoubtedly deliver superior products and services to our customers, and our staffs will attain both material and spiritual fulfillment as well.