Management Philosophy and Purpose

Management Philosophy (経営理念) sets out a company's basic thinking on why it does business and what it holds important.

It puts the leader's convictions and values into words and serves as an anchor that keeps day-to-day decisions consistent. For example, a company draws its vision on top of the philosophy, then turns it into a concrete management strategy and management plan for reaching that vision.

AnalogyLike a homeowner's idea of the life they want to live in a new house. The floor plan and the construction schedule are settled later, to give that idea a shape.

How to rememberIn the Japanese term, 理 means a guiding path and 念 means a thought held in mind. Split apart, it reads as a thought kept in mind as the guiding path of management.

2 past questions on this term 経営理念 →

Corporate Philosophy (企業理念) is the thinking that states a company's reason for being and the values it holds, and it is used in nearly the same sense as Management Philosophy (経営理念).

Some companies use corporate philosophy and management philosophy for different things, but either way it sits at the very top of the company's activities. Rather than going by the name, judge it by whether it states the reason for being and the values.

AnalogyLike a family motto handed down through generations. It stays the same when the head of the family changes and expresses what the family is at its core.

How to remember"Corporate" points to the company as an organization, and "management" to the work of running it. Only the angle differs, so what the two terms refer to largely overlaps.

2 past questions on this term 企業理念 →

MVV is a framework that sets out a company's core thinking as three elements: Mission, Vision and Value.

Core thinking tends to stay abstract, so splitting it into elements with different roles helps employees connect it to their own work. MVV is an abbreviation made from the initials, and some companies call a similar system by another name.

AnalogyLike a sports team that separately states why the team exists, which tournament it aims to win and what style of play it will stick to.

How to rememberThe order runs "why, then where, then how to act". M comes first because the reason to exist is the starting point that decides the other two.

1 past questions on this term MVV →

Mission (ミッション) is the element that expresses the duty a company fulfills in society, that is, its reason to exist.

It is the starting point of MVV and often stays the same for a long time even when the business itself changes. If the mission is vague, there is nothing to base the desired future or the standards of conduct on.

AnalogyLike a fire station's duty to protect lives and property from fire. Whatever scene the crew heads to, that duty is where their actions start.

How to rememberMission comes from the Latin for "to send" and once meant a task entrusted to an envoy. Think of it as a duty society has entrusted to the company.

1 past questions on this term ミッション →

Vision (ビジョン) is the element that shows the desired future a company wants to reach at a set point ahead, building on its mission.

Describing a target date and destination, such as "become the most trusted company in the region within five years", makes it easier for employees to face the same way. Once it is reached, the company may set a new vision.

AnalogyLike pointing at the summit on a climb and deciding "that is where we will stand". It makes the destination clear.

How to rememberVision shares its root with visible, meaning "to see". Think of it as a picture of the future you can see in your mind.

1 past questions on this term ビジョン →

Value (バリュー) is the element that shows the values and standards of conduct employees share in order to achieve the mission and vision.

It is often stated in short phrases such as "start from the customer's voice" or "share failures instead of hiding them", and it serves as an anchor when everyday decisions are hard. Some companies also build it into their hiring and evaluation criteria.

AnalogyLike a football team's rules such as "keep running to the final whistle" and "never argue with the referee". In every match, they are the standard of behavior everyone follows.

How to rememberValue means worth. Once you decide what you place worth on, how to act when unsure follows from it.

1 past questions on this term バリュー →

Human Capital Management (人的資本経営) is a way of running a company that treats people as capital that creates value, and draws out that value to raise corporate value over the medium to long term.

It treats spending on training, placement and the working environment as an investment that creates future value. What sets it apart is that management strategy and HR strategy are considered together.

AnalogyLike an orchard that puts effort into the soil and young trees rather than this season's yield, so the harvest grows in a few years.

How to rememberThe Japanese wording moves from the 費 (expense) in 人件費, personnel costs, to the 本 (principal) in 人的資本, human capital. People stop being seen as something spent and gone and become capital to build up.

Purpose-Driven Management (パーパス経営) is a way of running a company that makes clear its reason for being in society and runs the business around it.

The purpose is shared with employees, customers, business partners and others, and it becomes the yardstick for choosing businesses and allocating resources. It also helps employees see where in society their own work makes a difference.

AnalogyLike a neighborhood bakery that declares "we keep this town's mornings going" and sets its opening hours and lineup from there.

How to rememberPurpose originally meant "to put forward". Think of it as the question you set in front of everything else you do.