||In addition to business strategies, superior corporate management also has a substantial impact on increasing corporate value.
||Based on a survey of all listed companies, Nomura Research Institute, Ltd. (NRI) identified 15 Key Factors for Success (KFS) in fields. They include: (1) approach toward management; (2) corporate governance; (3) decision-making processes; (4) plan, do, check and act (PDCA cycle); and (5) raising awareness with respect to increasing corporate value by verifying the potential factors for successful value-based management.
||These 15 Key Factors include the clear commitment of the president concerning the orientation of management, careful linking of budgets and policies, the establishment of clear appraisal standards for executive compensation, and a higher degree of understanding of value-based management throughout the company.
||NRI is developing systematic solutions for building appropriate decision-making mechanisms for the re-deployment of current business resources, and means to carry out management subsequent to such changes. In particular, emphasis is given to the use of the balanced scorecard approach as a method for strategically rebuilding the PDCA cycle, which serves as the foundation of management.
||Management reform requires a seemingly contradictory approach of maximizing the benefits of past efforts through continuous reinforcement, while constantly taking on new challenges.