New Division Company System
Feb. 7, 2000
Nissho Iwai is reforming its organization, centered on its Division Company System, to accelerate business implementation.
The primary aim of the Division Company System, which forms the basis for organizational reform, is to accelerate decision making and raise the level of self-responsibility by establishing optimal organizational structures, personnel systems and operating guidelines in each business area. The ultimate goal is to boost consolidated return on assets and return on equity, and to increase shareholder value.
Implementation of the organizational reform program began on April 1, 2000. Based on the new system, we will continue efforts begun two years ago to strengthen our earnings structure through the concentration of resources in strategic business areas.
Outline of Organizational Reform
The current organization of four operational groups and 19 divisions will be replaced with a new Division Company System of nine companies. The Information Business Division will be transferred to an independent subsidiary, ITX Corporation.
See "Establishment of ITX Corporation"(February 8, 2000)
・Each company will be directly led by a company president and organized into its own divisions (the current divisional system will be abolished) to form a dynamic self-reliant organization. In addition, a Planning & Administration Office will be established at each company.
・In Corporate Administration, the group/division system will also be abolished and replaced by a more horizontal organizational system.