AMOEBA MANAGEMENT BRIEFING

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Amoeba is a type of worm, which lives in water for hundreds of thousand years, it can change its own form and quickly adapts to the living environment following the external environment change, so it has great surviving ability.

 

Mr. Inamori use Amoeba to describe this small company units. The Amoeba managerial model is to divide the company into many small groups, through operating accounting, these small groups are independently accounted for performance results, and the power and responsibility are fully decentralized. In the interior, people with business consciousness are constantly trained to conduct independent operations, lead every employee think and work like a boss.


Amoeba's management has raised the complex " administrative management" problems to the height of "profit management" to solve, as admin management is not the purpose, and "obtaining business results" is the basis of the existence of the company. The essence of the enterprise operation is to focus on the purpose and goals, give the specific methods and means to the employees, and let the employees "automatically and spontaneously" implement, create, and improve within the authorization scope. The amoeba model is a business model that really activates "people's hearts, mechanisms, and benefits". The concept and method of Amoeba's management was originally created by the Japanese entrepreneur Inamori Kazuo, who used Amoeba and business philosophy build two Global Fortune 500 companies Krocera and KDDI and rescued Japan Airline in 2010.

Why choose Amoeba?

 

Gary hammer, world-class strategy master, London Business School professor of strategy and international management, in his best selling book【the future of management】say: Traditional management is out of date! those management concept invented in the industrial era has been seriously disjointed from modern business environment, staff imprisoned in "semi-autocratic organization", they ignore or even suppress the most important and unlimited resources - employees' ability and passion for innovation and creation, in 21st century we must give management a more open and fresh vitality.

 

Amiba's business model can effectively deal with the organizational changes caused by the uncertainty of the market, facing the fuzzy and uncertainty of the external market, our internal organization can't be fixed. The traditional management is only responsible for the performance, the Amoeba management is responsible for the results. The purpose of the business is to make money, not to control the risk. The amoeba management model thus be born.

Under the traditional hierarchy organization

  • 1. The only one cares about profits is the boss

2. Bonuses issued, but the results not achieved
3. Managing costs are high, staffs seem uncare
4.Too many reports but none for boss cared
5. Staff lacks enthusiasm and motivation on job
6. Lacking talents becomes the bottleneck
7. Departmental walls everywhere
8. Empowerment cause chaos, no authorization make the boss busy like a dog.

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Under the Amoeba organization

-- Everyone cares profits.
-- All work for Profit Centers
-- Cost reduction
-- The process becomes simple, decision rapid
-- Motivate staff with passion
-- Attract practical talents
-- Staff actively solving problems
-- All staff cares profit

Amoeba model brings changes

AMOEBA model is reponding to the market uncertainty

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1. First, change "vague management" to "precise management", the managerial accounting enables the staff to see clearly the business genunne situations.
2. Second, change employees' minds from "multi-directional" to "same goal up and down", establishing the common biz philosophy, vision and mission, so that employees can see the future of the industry as well as their own.
3. Third, change the "direction confusion" to the "direction accuration", via strategic positioning, the company found the direction for progress.
4., Changing the "uneuqel power and responsibility" to "power and responsibility equity", via adjusting the organizational structure as per market changes, so the organizational structure is more flat with clear functions. 
5. Fifth, changing the target assignment via "game plan" to actively planning and formulation of its own annual business plan.
6. Change the "oligopolistic management" to "management for all", via independent accounting, each Amoeba operate independently according to its Annual profit plan with profit responsiblity.

7. Change the "market shield" to "market orientation" via internal marketization, and transfer market pressure to the internal organs.
8. Change "talent shortage" to "talents for all" via sound selecting good partners, educate people, employ people, and keep people, make talents grow rapidly.
9. Changing "point improvement" to "system improvement", finally carry out continuous and effective circular improvement, every day is in improvement.

The purpose of Amoeba model

 

The purpose of implementing Amoeba model is to nursing talents via philosophy and Amoeba. According to Professor Miya Hiro of Kobe University, in his book[Creating high income Amiba mode], Amoeba has five main objectives:

 

1.To achieve full participation in the operation;

2.Take accounting as an important indicator of employee contribution, and cultivate staff's goal consciousness;

3.Implementing a highly transparent operation;

4 Top-down and bottom-up integration;

5. Cultivate leaders;

 

The Amiba management model is a great business model to solve the problems of leadership training, field management and enterprise culture, which are the three big enterprise management problems. Although the three big problems melt into a furnace, but it is difficult to be valuable, amoeba operation mode is particularly simple, as long as the enthusiasm of the business enterprise, enough to understand and comprehend, the so-called road to Jane bar!

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5320 Amoeba Balance Roadmap

 

Amoeba management was not designed by scholars and professors in the classroom, but was summed up by Mr. namori Kazuo as an entrepreneur in his cecades' successful managerial practice. Its practicability and ability to on-the- ground are unquestionable. In order to let our Chinese entrepreneurs learn and understand its logic, based on his consulting practice over past few years, Mr. Daniel Zong summed up the 5320 balanced landing method to help people shorten their exploration time.

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5 refers to the 5 core steps in Amoeba's launch;
3 refers to the 3 parts of Amoeba's business incentives;
2 refers to the 2 top-level designs: strategy and Business plan;
0 refers to the origin of Amoeba's business: Philosophy.

The so-called "balanced landing" refers to the 4 balances to be coordinated:
1. The 1st balance is from the inside employees' training to the outside talents lead-in;
2. The 2nd balance refer to the business objectives and the process of achieving the goal.
3. The 3rd is to balance quantity to quality growth;

4. The 4th is "from near to far", balancing the short-term profits and long-term development strategies.

Amoeba management is a subversion

Amoeba managerial model well corresponds to hot word in the mobile Internet era : subversion

1. Traditional organizational structure subverted from a pyramidal centralized into a flat and mesh one.
2. The accounting system subverted from a company-wide big report to a "daily unit" operational one.
3. Staff responsibility subverted from" I do what my superiors ordered" to "what I wanted to do on like a boss".
4, The traditional budget system subverted from the enterprise's push strategy to each Amoeba's pull strategy.
5. The business purpose subverted from "shareholder first" to"employee first" .

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