ESGEmployee Roundtable Discussion

Discussion about Olympus’ Corporate Culture
Following the formulation of our new corporate philosophy defining Our Purpose and Our Core Values in May 2018, Olympus
announced the transformation plan Transform Olympus in January 2019 aimed at leaping forward into a truly global medical
technology company. In line with this plan, we have commenced full-fledged efforts to drive sustainable growth. How do
employees perceive the corporate culture built up over the years and how is it changing? To find out, we conducted a roundtablediscussion on the topic between mid-career employees working on the front lines of the Endoscopic Solutions Division,
Therapeutic Solutions Division, Scientific Solutions Division, and Imaging Division.

Moderator

Tetsu Watanabe
Corporate Branding

Ryuhei Tadakoshi
Endoscopic Solutions
Division
Overseas Marketing

Hiroaki Miyoshi
Endoscopic Solutions
Division
Development

Fumiaki Ishikawa
Therapeutic Solutions
Division
Overseas Marketing

Sayuri Watanabe
Imaging Division
Product Planning

Masashi Taniguchi
Scientific Solutions
Division
Sales

The Key Is Balancing the Five Core Values.
T. Watanabe Which component of Our Core Values do you
think has truly permeated the Company over the years? Also,
more than a year has passed since the corporate philosophy
was revised. What has changed in your respective workplaces?
Taniguchi In sales, there’s a tendency to take a short-term
perspective with a focus on immediate sales, so we are taking
care to put aside this mindset and take a long-term view .
Tadakoshi Around 10 years ago, I hesitated about whether
to inform a customer about a new product prior to the official
announcement or remain silent and continue selling the samemodel. When I turned to a senior colleague for advice, I wastold that 10 years of trust outweighed one year of sales, whichreally made a deep impression on me. I ended up waiting forthe new product release and selling the customer the latest
model. I’ve been conscious of the need for integrity ever since.
Miyoshi We pay close attention to the requirements ofdifferent doctors when developing medical devices. Olympus
employees have a strong sense of empathy and so are inclined
to acknowledge all customer demands. But we have to movewith agility for patients in need and do so without compromisingquality. Each of the five core values is important and it’s
essential that we find the right balance in work.
Ishikawa Our department has kept the need for agility
foremost in mind for a long time. To really permeate the corevalues, it’s first necessary to enhance agility because everythingelse springs from there. That’s the approach I’d like to take.
T. Watanabe I’m sure more time is required for all employees
to fully understand and really acknowledge the core values, butI believe that actually saying the words aloud helps reflect themin behavior.
Taniguchi That’s true. There are times I feel unsure in a sales
setting in the face of a sales target, but this feeling dissipates
when I consider the concepts integrity and long-term view .
These are common expressions used at Olympus, so nobody
feels strange uttering the words. When a colleague speaks ofintegrity , I am often in agreement.
Miyoshi Do your colleagues refer to the core values when
they talk to you?
Taniguchi Yes, they do. Somebody may ask me to workwith more agility , for example. The terminology is common
throughout, so employees sometimes even use the concepts
as ammunition with a superior, in a good way of course.

The Importance of Consistency in Brand Image
T. Watanabe In the Imaging Division, we started implementing
measures to promote the essence of the brand prior to arevision of the corporate philosophy. How do you connect
brand essence with the core values?
S. Watanabe Brand essence encapsulates the uniqueOlympus products and services that make people’s lives more
fulfilling and the value that we can provide to customers throughbusiness. The core values spell out the approach required atwork and what we need to be aware of in order to achieve this.
T. Watanabe What are you doing to permeate brandessence?
S. Watanabe We hold briefings and offer e-learning, forexample, but that alone may not guarantee understanding
among employees. What’s important is connecting one’s
work with the brand. To do this, we have management andcooperating members discuss brand essence directly with
employees on the front line and in each workplace while getting
each employee to think about what the brand means. Currently,
around 80% of all Imaging Division members give consideration
to the value they provide to customers.
Taniguchi What are you doing to create a unified global brandimage?
S. Watanabe We formulated a guideline on marketingfor promoting products and services in Japan and oncommunication specifically for members at sites overseas. This
has enabled us to promote products and services that portrayto customers a unified global brand image.
Ishikawa We follow guidelines when exhibiting our products
and services in Asia, but in all honesty it’s difficult to becompletely consistent. Other global companies, a status we
strive for, have a common approach to exhibitions that doesn’t
require any extra thought on the ground. I believe it’s vital thatthe Headquarters shows strong leadership in working to createa uniform brand image to realize our aim of becoming a truly
global medical technology company.

*Affiliations as of May 201946

Olympus Integrated Report 2019

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ESG

Employee Roundtable Discussion

Enhance Agility by Delegating Authority.
T. Watanabe Trying to portray a uniform image is indeed
important and we are considering how to incorporate that
into the Transform Olympus plan. However, even if everyone
has the same mindset, this comes to nothing in the end if thenecessary company frameworks aren't put in place. I believe
this to be the first step on our quest to becoming a truly global
medical technology company.
Miyoshi This time we can really feel how committed theCompany is to change.
T. Watanabe What are you expecting of Olympus and what
do you think could be changed to improve the organization?
Taniguchi It still takes time for approval to be granted, whichmeans progress can be slow. I think we could heighten agility
and make improvements if more authority was delegated to thelower ranks.
Tadakoshi I would worry about the result of transferring
authority. If something problematic were to happen, how should
the individual react and what does it actually mean to takeresponsibility?
Miyoshi In the medical field, there are a number ofstakeholders and many of the matters requiring judgment arehighly sensitive. To be honest, it would be difficult to delegate
authority to a single person in such cases. It’s hard to adjustthe ideas of the various opinion leaders outside Olympus.
Taniguchi The latest revision to the HR system clarified
authority with responsibility being taken at the individuallevel. If that actually comes to fruition, I expect the system tofunction well.
S. Watanabe Despite the need to perform numerous
administrative tasks in the past, the new HR system has
clarified my role, freeing me up to concentrate on my work. It
has also facilitated smoother internal ties such as collaboration
with other divisions so that managers can work based on theirjob description.

Fumiaki Ishikawa

48

The Need for Diversity in Human Resources toDrive Change

Increase Cost Efficiency Instead of Reducing
Costs.

T. Watanabe As part of the new HR system reforms, Olympus
is considering a framework for assigning human resources frominside or outside the Company who clear certain qualification
conditions when a position comes open to enable optimal
talent allocation. How confident are you that this policy can be
put into practice?
Miyoshi I’m half confident, half nervous. In the developmentof medical devices, we take our time communicating withdoctors and factory workers to make sure we create empathy
and a sense of unity. I think it would be difficult for someone
assigned from outside to do it immediately.
T. Watanabe I want Olympus to appoint people who feel
empathy with our purpose of “making people’s live healthier,safer and more fulfilling.” We can’t simply welcome anybody,and that’s where the standard is required. I believe that thestandard is whether or not the person can realize the corevalues.
Tadakoshi Since each employee offers work and receives asalary, it’s imperative that each individual does his or her bestand operates with a sense of urgency.
Taniguchi It will only cause problems with more managers
simply seeking short-term results. It’s common for a workplace
to fall into disarray when a manager changes because the way
they do things also changes. It would be a bit of a worry if thatwere to happen too often.
T. Watanabe The concept long-term view was incorporated
into the core values to emphasize the idea that Olympus
doesn’t evaluate people based on short-term results alone but
rather considers things from a long-term perspective.

T. Watanabe Do you keep in mind the need to raise
operational efficiency, one of the themes of Transform
Olympus ? President Takeuchi always states that he wants
each employee to think about how to work more efficiently andto ingrain this culture. He often talks of raising cost efficiency
rather than reducing costs. It’s important to fully understand thedifference in meaning.
Ishikawa We used to make similar promotion materials ineach region for our medical devices, but are now consolidatingthem to improve cost efficiency. We also try to do work withmore efficiency, which includes clarifying tasks before taking abusiness trip and making output easier to visualize.
Tadakoshi Most people who work shorter hours have great
concentration. They need to work extremely hard in order to
get everything done quickly so they can pick up their kids,
for example. I really want to learn such concentration andefficiency.
Taniguchi Efficiency comes when there’s a goal. An
awareness of that is crucial.
Miyoshi We have been striving for a long time to improve
operating efficiency in development. We are making significant
progress as well and have come to a point where we have tonarrow down development themes in order to enhance cost
efficiency further. As a developer, it’s extremely disappointing togive up on development we have been engaged in for years,
but it may be necessary to drive new growth.
S. Watanabe Since the lifecycle is fast and the development
period short for imaging products, we have various
technologies and know-how regarding operating efficiency.
Recently, we have been transferring these resources to otherdivisions to help with development. We are pleased that we areable to contribute to other divisions.

Ryuhei Tadakoshi

Hiroaki Miyoshi

Masashi Taniguchi

Agility Is Vital to an Organization.
T. Watanabe What do you think is needed to drive
sustainable growth at Olympus?
Miyoshi It’s important not to fear change. Speaking from thestandpoint of an engineer, although Olympus has conducted
product development based on technology over the years,
global companies expand business through M&A based on
customer needs. There’s a big difference.
T. Watanabe Sometimes we have an overwhelming desire toachieve things on our own and this can lead to a difference inthe speed things move relative to other companies.
Ishikawa It’s really important to know when to abandon
aspects of a plan as well. Keeping things clear from the outset
is critical to enable us to move with agility.
Taniguchi Change is now occurring faster than ever in theworld, and if we don’t have the agility as an organization tokeep pace, we run the risk of losing out. This should generate areal sense of urgency.
Tadakoshi It’s also risky to put labels on business domains.
If we note a domain as a strong performer, it may breed
complacency and inhibit the ability to keep pace with new
innovation. It’s critical that we keep evolving.
S. Watanabe I think we need to transcend business walls
and broaden our horizons in terms of the market and internallyto tactfully recognize where our value lies and continuallychallenge ourselves. I also think it’s important to identify longterm risks and respond as required.

Sayuri Watanabe

Tetsu Watanabe

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