IR BOOK 2021 - Organizational Strategy

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data29

Long-Term Organizational
Strategy

Engagement Ratings at Group Companies

Maintaining a High Level of Employee Engagement at Group Companies since
Our Founding
Engagement Ratings of Group Companies
Number of
AAA-Rated
Companies1

20182

102019companies(out of 12)

20213

2020

1110

companies(out of 12)

companies(out of 13)

IR BOOK 2021 - Organizational Strategy

To raise awareness of the importance ofemployee engagement for business growthand provide pertinent information to thecapital market, since 2018 the Group has been
disclosing its Engagement Rating (ER), whichranks the ES of each Group company. Almost
every Group company has consistently
maintained the highest ranking of “AAA,” andthe Group’s high level of employee
engagement is a competitive advantage.

2022

11

companies(out of 13)

9companies(out of 11)

Breakdown of February 2022 Results
Company

Link and Motivation Inc.
Organizational Development Division

AAA

Link Global Solution Inc.
Link Event Produce Inc.
Link Corporate Communications Inc.

Individual Development Division

AAA

Link Academy Inc.
Motivation Academia Inc.
Link Interac Inc.

Matching DivisionAA

Link Japan Careers Inc.
Link Staffing Inc.
Link-i Inc.
OpenWork Inc.

Number of Employees

Rank

388
222079AAAAAAAAAAAA

51131

AAAAAA

172
17152074

AAAAA
AAAAAABBB

1. Results from February for each year (excluding Link Dining Inc.).
2. Results from August for 2018 only.
3. November 2020 results for OpenWork Inc. only.

IR BOOK 2021
https://www.lmi.ne.jp/english/

Note: The Group discloses information on human capital based on ISO 30414.
Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data30

Long-Term Organizational
StrategyEngagement Rating by Category

Providing an Environment Where Diverse Human Resources Can Feela High Level of Engagement and ThriveGroup Employees (As of December 2021)
Employees

MaleFemale

Japanese nationality

Other nationalities

1,493 807 686 1,408 85
February 2022 Results
By Gender

By Nationality (Area)
Number ofEmployees

Number of
Employees

Rank

1,164

AAA

Asia (excluding Japan)

11

AAA

Oceania

6AA

North America

34

AAA

Central and South America

2AAAEurope

11AARankJapan
MaleFemale

IR BOOK 2021
https://www.lmi.ne.jp/english/

IR BOOK 2021 - Organizational Strategy

Because the Group operates all kinds ofbusiness models in its three divisions, its
workforce is quite diverse in terms ofnationality and other attributes. Diagnostic
surveys conducted by the Group enable
analysis across all attributes, allowing theGroup to provide an environment where
diverse human resources can feel a highlevel of engagement and thrive.

734614

AAAAAAManagement Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data31

Long-Term Organizational
Strategy

Our Foundation

A Core Philosophy-Based Strategy That Unites the Link and Motivation Group4eyes® Windows

Engagement Factors in 16 Areas(Weaknesses,
weak points)

INTER LINK

Philosophy and strategies(Centripetal force of theorganization, uniquenessof the company)
Satisfaction(Indifferent)

IDLE LINE(Unnecessaryexpenditures)

Business content

Collection of information
Decision-making

Work content

SupportOrganizational climate

External adaptation

Human resources
Facilities and environment
Systems and benefits

Toward the workplace

INK BLOT

Provision of information
Toward the boss

ICE BLOCK

Company foundation

IR BOOK 2021 - Organizational Strategy

Expectation

Toward the company

To maintain a high level of employee
engagement, the Link and Motivation Group
places its greatest emphasis on being
united by its core philosophy. Sympathy withthis philosophy is essential for the Group.
During our short 22-year history this has
enabled us to provide value that should
continue many years into the future.
In addition to sharing and instilling theGroup’s raison d’etre and vision among ouremployees, we also emphasize sympathy
with our philosophy in hiring, making it asubstantial strength of our organization.

Internal cohesivenessTransformation activities
Succession

Group Companies Whose Philosophy and Strategies Fallwithin the INTER LINK Sector (February 2022 Results)
GroupCompanies(Employees)6companies(out of 11)

IR BOOK 2021
https://www.lmi.ne.jp/english/Management Strategy

Business Strategy

Group Companies That
Hire New Graduates(Prospective Employees)

9companies(out of 9)

Organizational Strategy

Corporate GovernanceCorporate Data32

Medium-Term Organizational
StrategyOver the Medium Term, Ramp Up Recruiting in the Organizational Development
Division and Implement Initiatives to Further Increase Employee Engagement
Organizational Development Division

Group-wide

Enhancing Recruiting and Training Based on
Motivation Engineering

Improving Productivity

Consultants

Promoting DX

IR BOOK 2021 - Organizational Strategy

We will step up investment in ourbusinesses, mainly in the Organizational
Development Division over the medium
term. For our organization, we will raiseboth the competency and the number ofour consultants and engineers by ramping
up recruiting and training in the Consulting& Cloud Business based on Motivation
Engineering, our core technology.
Throughout the Group, we will periodicallydiagnose employee engagement to conduct
appropriate organizational management as
we focus on improving productivity andtraining the next generation of managers.

Compatible WorkEngineers
See page 35 for details.

See page 36 for details.

Training the Next Generation of Managers
Top Gun Selection

Raise Both Competency and Number
See page 34 for details.

See page 37 for details.
Note: See the Company’s website and IR Book 2020 from page 23 onward for general
Group-wide initiatives.

IR BOOK 2021
https://www.lmi.ne.jp/english/

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data33

Organizational Development
Division

Enhancing Consultant and Engineer Recruiting and Training in the Organizational
Development Division

IR BOOK 2021
https://www.lmi.ne.jp/english/

Recruiting

Training

IR BOOK 2021 - Organizational Strategy

The Organizational Development Division
has the highest ES among the threedivisions, and its engineering organization
also maintains a high score. For further
growth going forward in the Consulting &Cloud Business, we will enhance recruiting
and training, mainly for consultants, while
maintaining this high level of employee
engagement. To increase our ranks ofengineers, we will act with agility as aGroup united by a core philosophy byconducting selective training of new
university graduates as well as stepping
up hiring of mid-career employees.

Consultants

Significantly increase the number of new hires,mainly focused on new university graduatesEstablished a consulting promotion office formajor companies to train top consultants

Achieve a high level of engagement in recruiting,mainly focused on mid-career hires

 elective training of new university
Sgraduates with aptitude
Motivation Engineering training for
mid-career hires

Engineers

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data34

Group-wide:
Improving Productivity

Improving Each Employee’s Productivity Based on a DX Skills Diagnosis

Efficiently Improving DX Skills with Solutions for Diagnosis-Based Transformation

Diagnosis (Nov. 2021)

Transformation (Dec. 2021 to May 2022)

Diagnosis (May 2022)

Levels assigned
according to results

In-house DX promoted by a Technology
Administrator (TA) assigned to each organization

Check retention level

Conducted byLevel

AdvancedITknowledge

IToperationBasic

IR BOOK 2021
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Knowledge Acquisition
through E-Learning

IT Passport
courseNational
certification ofbasic IT
knowledge

Management Strategy

Online Training in Operation

MicrosoftOfficeintermediatelevel training

Google Apps
Scripttraining

MicrosoftOfficetraining forwork
efficiency

GoogleWorkspacetraining

Business Strategy

Organizational Strategy

ITknowledge

Corporate Governance

IToperationCorporate Data35

IR BOOK 2021 - Organizational Strategy

Since 2021, the Individual Development
Division has been offering its DX support
in-house to further improve Groupemployees IT literacy with the goal ofstrengthening and enabling more rapidbusiness growth. We have also started
assigning Technology Administrators (TA’s)
responsible for promoting digitalization toeach Group company to help increase theoperational efficiency of each organization.
We will continue to conduct a regular cycleof diagnosis and transformation to improve
DX skills throughout the Group.

Group-wide:
Improving Productivity

Compatible Work to Increase Both Productivity and Employee Engagement

New Ways of Working
2021
Approx. 60% reduction in floor space fromoffice downsizing and relocation nationwide

2022
Shift to Compatible Work while monitoring the status of COVID-19

Osaka
January 2021
downsizing

Cooperation

SendaiJanuary 2021
downsizing

IR BOOK 2021 - Organizational Strategy

The Link and Motivation Group has
responded to the COVID-19 pandemic byrelocating and downsizing its offices
throughout Japan, and by establishing a
new work style model called Compatible
Work. The idea of Compatible Work isbased on transforming the way we work bycombining real-world and virtual spaces toincrease productivity and employee
engagement. Because of our powerful
belief in the value of employee
engagement, we flexibly adapt ourapproach to work according to the realenvironment in which we work.

Benefits of Office Work (Real World)Tokyo Head Office
October 2021
relocation

ChanceOccurrences

Emotion andLogic

Sympathy

Benefits of Telework (Virtual)

NagoyaFebruary 2021
relocation
Hiroshima
November 2020
relocation
Fukuoka
April 2021
relocation

IR BOOK 2021
https://www.lmi.ne.jp/english/

Concentration

PlanningRationality

Synchronization

Optimally design each daily task to increase productivity and appropriately
facilitate real-world communication to raise motivation.

Management StrategyBusiness Strategy

Organizational Strategy

Corporate GovernanceCorporate Data36

Group-wide:
Cultivating Managers“Top Gun Selection” to Select and Cultivate Our Next Generation of Managers

2022 Planned Content
Objective

IR BOOK 2021 - Organizational Strategy

Expanding and growing our business to create
an engagement chain requires the developmentof management personnel to lead theorganization. That is why in 2021 we launched
Top Gun Selection, a program for selecting andcultivating our next generation of managers, tooffer participants opportunities to think from aGroup perspective. Chairman Ozasa plays acentral role in the year-long training ofmembers selected from various levels. Inaddition to broadening the viewpoints ofparticipants, the program helps them advancein their careers.

Annual Schedule

Corporate Officer
Class

Raise the level of corporate officers

President and Company
President Class

Cultivate the next group of officer candidates

Management Class

Cultivate future officer candidates

General EmployeeClassProvide breakthrough opportunities to promote
success

1Q February: Kick-off meeting
2Q May: Survey feedback and dinner
3Q July: Meeting for presenting proposals
4Q October: Meeting for presenting proposals
November: Survey feedback and dinner

2021 Participant Comments (Selected)

Management Class

President and Company President Class• The biggest benefit for me was that it made me ready to ask myself whether I
am putting my true intentions into what I am doing as an executive.
•	It broadened my perspective by deepening my understanding of areas I don’t
normally manage, giving me an opportunity to consider overall Group assetsand strengths.

IR BOOK 2021
https://www.lmi.ne.jp/english/•	Aside from making me feel an urgent need to develop the perspective of amanager, it was a good opportunity for me to think about the future fromthe standpoint of LMG’s management.
•	If not for this opportunity I don’t think I would have come across these newideas. As a candidate for management, I take this as a chance to learn and grow.

Management Strategy

Business Strategy

Organizational Strategy

Corporate GovernanceCorporate Data37