社外秘No. 182

2010.05

JLC NEWS・̶̶̶

・̶・・ ̶・̶・

̶・

・

・̶̶

発行元 ：株式会社 日本レーザー

・・・

編集責任者：菅原秀郎

2010.5 Notes from the President“ 明 る い 社 員 に 明 る い 未 来 、 JLC”
“ If you can dream it, you can do it!”
“Chance & Challenge!”

B e n t l e y C o l l e g e M B A S t u d y To u r i n J a p a n
2010.5.12“Effective Management to Restructure a Company in Japan----How to Motivate People at the Company”
Japan Laser Corporation President /CEO Nobuyuki Kondo
Introduction:

While I lived in Melrose MA, from 1984 through 1992,

Good morning everyone.

working for JEOL USA in Peabody, I was invited a

My name is Nobuyuki Kondo.

couple of times to Bentley College to make speech on

I have been President /CEO of JLC, Japan Laser

Differences of Business Practices between JapaneseCorporation, for over 16 years since May 1994.

companies and American ones.

JLC is the oldest and biggest trading firm specialized inlasers and electro-optics in Japan.

Since I came back to Japan, I have been continuously

Concurrently I have been Chairman of JIAL, Japaninvited by Bentley College to make a presentation on

Importers Association of Laser ands Electro-Optics, forthe similar subjects to the MBA students of the study

over 11 years since February 1999.

tour, like you all since 1993.

1／35

No.182
2010.05

社外秘
JLC NEWS

Today I am going to talk to you how to motivate peopleUS.

in a small company, JLC.

Yes, I was in charge of domestic sales and marketing.

I hope you will enjoy my story and will be encouraged

Yes, I was good at management-labor relationships,

by the new management philosophy of the company.

because of my previous experience as the president of
JEOL workers Union.

1. President of JLC Transferred from
Director of JEOL

Yes, I was the youngest director at JEOL.

In entered JEOL, the world leading electron microscope
manufacturer, in 1968, when

2. What were the reasons JLC was on theverge of collapsing?

JLC was coincidentally established.

In order to succeed in the business, there are various

JEOL expanded its business to the US in 1961 andfactors to be aware of in each industry.

started direct sales of electron microscopes in Boston inwords, there are no absolute rules to succeed for any

1966.

company.

I

wastransferred

to

New

England,

where

the

In other

However, there are definite reasons for

failure in any company.

After investigating the past

headquarters of JEOL USA, Inc is located, in 1984 andmanagement and observing people at JLC, I figured out

lived there until the end of 1992.

some of the reasons why the company nearly went

After being responsible for the domestic sales andbankrupt in the past.

marketing of JEOL in 1993, I was transferred to JLC, a

to today’s operation of the company.

wholly owned subsidiary of JEOL, in 1994 to take fulllessons contribute to your business decisions at any

responsibilities as its president to restructure thecompany.

company.

1)

Inadequate orders, sales and gross profits

JLC was on the verge of bankruptcy at that time,2)

Expenses out of line with sales.

having a negative net worth.

3)

Too many people on staff proportionate to total

The findings are still pertinent
I hope thesales.
JEOL’ s top management explained to me the five main

4)

Fixed personnel expenses

reasons for my appointment.

5)

Lack of effective administration.

6)

Lack of a sense of crisis.

7)

Poor communication among managers.

8)

Excessive long-term account receivables.

9)

Excessive long-term inventories.

sales

10)

Ineffective sales promotion.

experiences for JLC to promote its products

11)

Under-motivated people.

principally in the markets in Japan.

12)Lack of employee discipline.

13)

No energy or enthusiasm throughout JLC.

14)

Weak relationships with suppliers.

1) JLCis a

tradingcompanythatrequires itspresident to speak English fluently.
2) The president should have occidental businessexperiences to deal with overseas partners.
3) Thepresident

shouldhave

domestic

4) The president should be good at management–labor
relationships.
5) The president should be energetic and motivated torestructure the company by all means.

I suppose that there was not effective and efficientmanagement at JLC, all things considered.

Poor

Off course I did not have any other choice but to accept

management always leads a company into danger.

their appointment.

JLC needed a better management philosophy to survive

Yes, I was able to speak English as a tool ofas a going concern.

communication with overseas people.
Yes, I experienced in the international business in the

2／35

社外秘

No.182
2010.05

JLC NEWS

3. How did JLC recover?

key factors in our successful recovery.

The most important reason was highly motivatedWhen I was transferred to JLC as President in 1994, I

4. Why we became independent from ourparent company through the MEBO?

remained

There are always both sides of a coin.

people.

atthe director position

at

JEOL too.

Although we enjoyed a profit in the fiscal year 1994, I

JEOL had some reasons to let JLC be an independent

felt something was wrong with the perception of my rolecompany.

at the company by people at JLC.

I heard the rumor

Upon establishing the new mid-term plan, JEOL

that they thought M r. Kondo would go back to JEOL,

decided to retreat from the optical business, including

thethe surrender of the controlling ownership of JLC.

parentcompany,

in

the

near

futureafter

successfully restructuring JLC, because he was still the

A joint venture of JEOL and JLC, JEOL LIOSONIC,

youngest director at JEOL.

Ltd., went into liquidation in 2003.

I realized this kind of rumor discouraged capable staff

The parent company lacked any capable candidates formembers at JLC and was bad for moral.

the president and the administration manager of JLC,

For example,

it was easy to presume that the company might clean up

who were supposed to be sent from JEOL to JLC.

all

I was told by the president of JEOL that JEOL was not

of

its

deficitsbysacrificing

employees’

compensation.

able to send JLC any successors of them in 2006.

Subsequently, I resigned a director of JEOL in June of
1995, after serving the company as a director for six

On the contrary, JLC had also several reasons toyears.

pursue

The atmosphere at JLC then changed.
everyone’s confidence and acceptance.

I acquiredanypossibilities

to

leave

from

JEOL’sconsolidated companies.

They took my

We did not have any rights to make timely financial

resignation and dedication to the company seriously anddecisions, such as bank loans, buying foreign currencies,

worked harder with genuine cooperation to restructure

etc.

JLC.

We needed to get approval in well advance from theAnother reason was changing compensation systems toparent company to promote managers and to appoint

improve our motivation.

directors, etc.

With the seniority based wage system your pay goes up

In short, we were not able to make our own decisions to

as you get older, regardless.

cope with quickly changing management environment

Many capable JLC employees moved on to a companyof the company.

that would judge them based on their talents.

One

important job for business is to get excellent human

Eventually I established JLC Holdings (JLCHD) withresources and keep them from leaving.

the support of Mitsubishi Bank in June 2007.

I believe it isimportant to give rewards to company employees who

After selling my shares to all directors and employees of

produce major results.

JLC, all of them have owned stocks in JLCHD, 53.1%
and 32 % respectively, totaling 85.1%.

After

observing

employees’

performancesandThe former

parent company owns only 14.9%.

behaviors, I finally decided to change our wage system

At the same time JLCHD acquired entire stocks of JLC

from

from JEOL and completed the MEBO, Management

thetraditional

seniority

efficiency-oriented wage system.

systemtothe

They are always

Employee Buy-Out in early July.

required to polish their skills and acquire necessary job
qualifications.

This countermeasure was one of the

From this point of view, JLC is a unique company not

3／35

No.182
2010.05

社外秘
JLC NEWS

only within the JEOL group but also in Japan.

Oursuppliers.

company is a company in the true sense of the word’s

8. Our Vision for the Future

Latin origin.

1)

5. Beyond the Leman-Brother’s Shock;
JLC Today

The markets JLC focuses on will be not only inJapan, but also in East Asia.

2)

JLC achieves US$40 million in sales within a

The year of 2007 was the historically best year for JLC,

couple of years, and US$50 million in the neararchiving US$ 33 million sales.

future.

However, our business climate was getting worse in

3)

JLC group achieves 100 million annual turnover

2008, eventually our annual sales decreased by 25%

with several companies under JLCHD in thedown to US$ 25 million after the Leman-Brother’s

future.

shock.
Fortunately

enoughour

company

recovered

9. Our Strategy

dramatically in 2009, successfully making our business

1) JLC imports and sells the world’s most advanced

plan of US$ 30 million.
We

began

this

year

optical technologies and products from overseas
quite

successfully

with

an

suppliers in the scientific and industrial markets

unexpected large influx or POs.

in Japan.

The amount of sales in Q1 (January through March)

2) JLCwas US$ 11 million.

offerstechnical

supporttosuppliers’

customers in East Asia.

Under these circumstances, we are confident to exceed

3) JLC promotes systems with

our annual business plan of US$ 35 million at the end of

peripherals and software, etc.

December 2010, which will be record high.

added value of4) JLC supports domestic manufacturers to promote

The total number of people is 57, including regula r,

their products in East Asia.

part time, temporally and contracted employees, as well

5) JLC creates amutually

trusting

relationshipas directors.

among stakeholders via the concepts of “CAR”,

6. Our Management Philosophy

Confidence, Appeal and Respect.

We facilitate the development of a great diversity of6) JLC cooperates with overseas suppliers to establish

sciences and industries, creatively applying optical

their subsidiaries in Japan, when they wish, undertechnologies through cultivation of mutually beneficial

JLCHD.

relationships with customers and partners.

7) JLC supports directors and managers to establish
their own companies if they wish under JLCHD.

7. Our Corporate Missions
1) We provide customers with “Integrated Light
Solutions”.
2) We provide all people who work for JLC with a

10. Our Management Policies“S.O.F. T. “ is an acronym representing the essence ofour management policies at JLC.

SOFT stands for

fertile environmental and opportunities to attain

Speed & Simple, Open & Opportunity, Fair andself-enrichment and accelerate their professional

Flexibility and Transparency & Teamwork.

development regardless of age, sex, academic

benchmark for our business practices and corporate

history, race, religion or national origin.

decisions we constantly strive to adhere to these3) We contribute to mutual understanding among

As aconcepts for better management.

global citizens and to world peace through1) Speed:mutually profitable relationships with overseas

In order to cope with the ever-changing company

4／35

社外秘

No.182
2010.05

JLC NEWS

environment, management should make decisions

or discrimination.

and respond to changes with all deliberate speed.
Speed is one of the important elements of effective6) Flexibility:

management in a global situation.

Since the circumstances under which we conductbusiness are always changing, we have to adapt to2) Simple:

changes

JLC has constrained itself to simple regulations andManagement should be flexible in its businessbusiness procedures.

For example, we are proud ofpractices and the even company regulations should

having a very low overhead and small Administration

be applied with thoughtful and just consideration inGrouporder to demonstrate appreciation for a given

utilizing

only

three

staff

members,

management approvals can be obtained through our

in

any

situation

withsavoir-faire.

situation.

intranet, everyone has direct access to all levels ofmanagement, and our personnel evaluation system is7) Transparency:

straightforward.

We try to share information and our philosophy on
management, business procedures, and results with3) Open:all employees through a variety of meetings andBeing open and candid is essential for everyone atemails.

JLC.

financial information and trade secrets with people

Even the President, should willingly accept

JLC

discloses

most

of

its

importantcomments and criticisms, including those which makeworking for the company.

him uncomfortable.

publishing its newsletter, JLC News, every month.

He should listen to such

The company has beenrequests or criticisms with a cheerful smile and a

The newsletter always carries the previous month’s

positive attitude because if his face or his bodyfinancial results as well as individual contributions tolanguage shows displeasure at unfavorable comments,

the company.

no one will make them to him again.

If we all keepon an open mind and give thoughtful consideration to

It is quite unusual for a small company like JLC in

constructive

Japan to have a weekly management meeting, acriticism,

this

will

be

a

major

contributor to continuous improvement.

monthly all-inclusive staff meeting, and an official
BOD meeting4) Opportunity:
JLC provides people who work for the company with

8) Teamwork:a fertile business environment and a wide range of

Whereveropportunities

teamwork is crucial to achieve the best results.

toattainself-enrichment

andaccelerate their professional development.

However,acompanyouremphasisexists,onneedlessautonomy

to

of

say,

the

individual could be misconstrued to conflict with
5) Fair:

teamwork.

We treat our people, sub-contractors, and suppliers,

minimal supervision as they should, but we mustindeed everyone with whom we interact, fairly,

alwaysregardless of age, length of service, sex, academic

teamwork

history, race, religion, or national origin.

appropriate.

three regular employees from China.

JLC hasSelf-motivatedmaintainourthroughpeople

work

close

collaboration

andwhatevertechniquesare

One of thereasons why we have many people of diverse national

11. Our Belief

origin is that we treat them equitably, without bias

1) As employees grow, the company grows.

5／35

with

社外秘

No.182
2010.05

JLC NEWS

2) Employees’satisfaction

comes

first

beforeour business.

customers’ one.
3) Unlessemployees

are

not

satisfied

with

the

14.

company and products or services they provide,
they cannot satisfy their customers.

oropportunitiesa

PoorlyMotivated

If you work at a company, which has following systems

4) Unless employees do not appreciate the company’scompensation

JLC against
Company

provided,theycannot share the pleasure with customers.

and corporate culture, your dissatisfaction with thecompany will almost surely become quite severe.
1)

You are discriminated against by age, length ofservice, sex, academic history, race, religion, or

12. Our Corporate Culture we are aimingfornational origin.
2)

1) We endeavor to continually improve our corporate
culture by building on the respect we have for eachthey are treated with favor.
3)other, sharing the pleasure of working closely
together, and being amiable and confident in all ourManagement favors employees who are sycophants(apple polishers).

4)business and personal relations.

Your ability and competencies are not fairly
evaluated.

2) We are grateful for the stage offered by JLC and we

5)Your contributions are not properly appreciated.

6)Your compensation is not fairly matched to yourstrive to continue to evolve to a higher level byconstantly challenging our personal and JLC’s goals

contributions.
7)on this stage.

Human relationships among company insiders are
bad.

8)

13. Our Principles of Conduct

There are no available educational systems, which
can contribute to your growth.

JLC is a company that utilizes its unique corporate

9)

missions, management philosophy, management policies
and corporate culture objectives as building blocks toachieve success.

Relatives of board members enter the company andMixers, parties, outings, company sponsored trips,
etc. are not provided.

10) There is no chance to use English to become

To contribute most effectively to thisinternational businesspersons.

success, it is essential that each and every employee11) The company’s future is not bright.

adhere to the guidelines described below.

12) The president doesn’t have strong leadership skills

1)

2)

I will collect new information with a keen sense ofawareness and convey it quickly to everyone it may

On the contrary, JLC is not such company, indeed theconcern.

antithesis, being managed according to a very different

I will adapt to changes in any situation in a

corporate philosophy under a good corporate culture.

composed

However, there will always be room to improve ourandprofessionalmannerwithsavoir-faire.
3)

5)

management techniques and business practices.

I will always strive to learn the facts and search for

I will greet others with a cheerful smile and

15. A Company with the most Motivatedpeople in Japan

interact with everyone without preconception or

In order to become a premier company in Japan at the

prejudice.

forefront of employee motivation, we will devote ourI will look at the complete picture to be able toutmost effort to this goal.

explain it in plain and simple words to everyone in1)

the truth.
4)

to grow the business.

6／35

JLC’s

employees

have

been

highlymotivatedNo.182
2010.05

2)

社外秘
JLC NEWS

through the MEBO.

from US$ 80 to US$ 650 is evaluated every

We need to modify our stockholders association to

six-month by the board of directors.

accept newly hired employees who joined us after

3)5) The monthly manager allowances ranging from

the MEBO in 2007.

US$ 500 to US$ 1500 are evaluated every

We treat our people not as “one of them”, but as ansix-month by the board of directors.

individual one.
4)6) The basic salary is decided according to ranks,

We produce a friendly atmosphere through daily

which are decided based on BOD’s evaluation.

dialogues between management and employees.
5)6)7) The amount of bonuses paid two times a year are

We continue our weekly notes exchanging ourdecided based on both evaluation by BOD andawareness with management and employees.

based on the amount of gross profits each

We continue a close contact between management

employee and his or her group acquired.

and employees, such as mixers, parties, outings,

7)8) In order to adjust the amount of the bonus forcompany-sponsored travels, etc.

the motivation point of view, the adjustment

We create a great sense of inward security throughbonus is also provided.

being ever profitable.
8)

9)

9)

The retirement payment is calculated not by the

We offer our people and opportunity to work until

length of service but by the contributions to the

70 years old if they want.

company.

We continuously offer a wide range of opportunities
toattainself-enrichment

andaccelerate10) The BOD regards employees’ understanding of

their

the corporate philosophy and the corporate

professional development, such as training courses

culture we are aiming for as very important.

provided by several consulting firms.

11) JLC’s employees and directors need to have10) We always improve our compensation systems toadequate communication skills in English to send

meet employees’ expectation.

out our idea to the rest of the world.
12) We have to be irreplaceable staff members at

16. Our Compensation Systems

JLC to improve our compensation.

JLC’s compensation system has been reviewed every
year to improve our motivation.
1) JLC’s compensation systems are very unique,combiningseniority-based,

17. President’s Fundamental Guidelines
for Managementcompetency-based,

I hope our JLC people understand my sense of value

merit-based and philosophy-based systems inand philosophy for the management of the company.

both wage and bonus as well as in severance pay

My role and intent is to lead the company, not to force

or retirement money.

everyone to rigidly adhere to my individual way of2) Every employee needs to get a TOIEC score morethan 500, as so called “Working Visa at JLC”.
3) The basic competence allowance consists of threefactors:a) Information

doing things.

hold to the following eight principles to conduct myself
as president and to make decisions at JLC.
1)

processing ability

inEnglish,represented by the TOEIC score

2)

Gain from losing.

=Postpone your profit indeference to others happiness. =3)others with a cheerful smile”.
4) The monthly basic competence allowance ranging

Openly accept people coming into the company;
don’t pursue those that are leaving.

b) PC/IT operating and utilizing abilityc) Attitudes towards people, such as “Greet

Therefore I always try to remember andTurn misfortune into a blessing.

=If fate deals

you a lemon, make lemonade=
4)

7／35

More is not always better.

=What people want,No.182
2010.05

5)

6)

7)

社外秘
JLC NEWS

give it to them in moderation. =18. JLC’s Way

Don’t make yourself look good. (Be honest and

There is no way to happiness.

candid.)Happiness is the way.

Don’t meddle with others.

We live now and here.

=Always get people’s consent before giving them

We should not regret what we have done in the past.

your suggestions or doing them favors. =We should not be anxious about what will happen in theMake decisions of your own free will, when it isfuture.

appropriate for you.

We should focus on the task at hand now and here.

=Accept personal responsibility, don’t shift blame8)

to others. =Everything is up to us.

What happens around you is for the best and is

Take responsibility for every area of your life.

your fate.
= Accept life as it is. =Last but not least the shortest distance between two

My management objective is not to make JLC a big

points in life is not straight.

company, but to help create a company in which all

There are always ups and downs in life.

people enjoy their work and attain personal growth,

It is my belief based on a lot of experiences in my life.

satisfaction, and success.

Thank you for your attention.

JLC’s New Management Slogans“Integrated Light Solutions”
We facilitate the development of a great diversity of sciences andindustries, creatively applying optical technologies through cultivation ofmutually beneficial relationships with customers and partners.
We endeavor to continually improve our corporate culture by building on therespect we have for each other, sharing the pleasure of working closely together,and being amiable and confident in all our business and personal relations
We are grateful for the stage offered by JLC and we strive to continue to evolve toa higher level by constantly challenging our personal and JLC’s goals on thisstage.
“Do Not Disclose Confidential information at JLC”
You hear many confidential things at the all-staff meetings and get important information in the JLC NEWSevery month.

Indeed, it is crucial not to disclose them outside of the company.

company by careless chatting where people outside the company can overhear you.

“The Best Way to Predict the Future is to Invent it.”
8／35

You may hurt theNo.182
2010.05

社外秘
JLC NEWS(Alan Kay)

“ It is not the strongest of the species that survive, not the most intelligent, but the one most responsive
to change.”(Charles Darwin)
Where there is a will, there is a way.
There is no way to happiness. Happiness is the way.
Thank you very much for working hard together and closely with management.
Nobuyuki Kondo“JLC is on the Move.” ＝ 2010 年大爆 発＝

9／35