Priority should be given to the establishment of business divisions rather than subsidiaries.

Read Management: kazuo inamori's 60 Suggestions for Managers;

In the process of enterprise development, with the continuous expansion of scale and strength, in order to better carry out new business, enterprise managers usually think of establishing subsidiaries. For this popular development model, kazuo inamori thinks it is not desirable. He said: "Instead of setting up a subsidiary, it is better to set up a business department first."

Kazuo inamori's reason is that enterprises set up subsidiaries one after another, so that the parent company is constantly separated, so that in the fierce competition, the energy of enterprise managers will be dispersed by the subsidiaries.

Kazuo inamori believes that managers should not easily set up a company independent of new business within the enterprise. Although many management experts advocate that enterprises should set up subsidiaries in a drastic way, companies in kazuo inamori are all conducted within the company in the form of business divisions.

In kazuo inamori's view, each business department has its own products and markets, and can independently plan its future development and flexibly adapt to market changes. This kind of structure is both flexible and stable, which is beneficial for senior leaders of enterprises to get rid of complicated administrative affairs and become powerful decision-making bodies. At the same time, this structure can also make all business departments play their subjective initiative and creativity more actively, thus improving the overall efficiency of the enterprise. In addition, this practice is also conducive to cultivating comprehensive management talents for enterprises and reserving outstanding cadres for the future development of enterprises.

Kazuo inamori's advice to managers

(1) After the establishment of the Division, each department adopted an independent accounting system.

Kazuo inamori emphasized that since business divisions are generally classified according to product categories, independent accounting of business divisions will help employees focus on a certain technology or product, thus improving product quality and making them continuously obtain outstanding research results.

(2) Full decentralization, clear division of labor, so that the company has independent authority.

The leader of the parent company had better not interfere with the product research and decision-making of the division. The top management of the parent company only needs to ensure that the development and research direction of the division conforms to the development direction and vision of the whole company. On this basis, the parent company should boldly delegate power to the business departments, so that they can better adapt to the changes in the market and flexibly respond to the fierce competitive environment. This way is conducive to giving full play to the initiative of the division, training the person in charge of the division into a proficient manager, and giving full play to the talent and creativity of every employee in the division.

Summary: kazuo inamori Youli Enterprise Division has the following advantages in enterprise management:

First, avoid the distraction of enterprise managers and flexibly adapt to market changes.

Second, it is conducive to mobilizing the enthusiasm and creativity of employees.

Third, it is conducive to training talents.