2004年度（2004.4～2005.3）　ワークショップ講演

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Entrepreneurship Workshop II
(October 14, 2004)

Theme: Predictive Power and Insight in Business
Guest Speaker: Mr. Masanori Kanda, Representative Director of Almac, Inc.

1. Personal Profile
On graduating from the Faculty of Foreign Studies at Sophia University, Mr. Kanda went to work in the Economic Affairs Bureau of the Ministry of Foreign Affairs. Later, he obtained a master’s degree in economics from New York University and a master’s in business administration (MBA) from the Wharton School of the University of Pennsylvania. In 1993, he joined the Whirlpool Corporation (home appliance manufacturer) in the United States, and assumed the post of representative in Japan in 1995. In 1998, he founded Almac, Inc. Today he runs multiple businesses for executive training, accelerated learning, psychological counseling, etc. He has written several books, including Project to Make a Company a Runaway Leader in 60 minutes (DIAMOND Inc.) and Why Doesn’t Spring Come? (Jitsugyo no Nihon Sha, Ltd.).

2. Summary of Mr. Kanda’s Speech
(1) From his experience to date
When Mr. Kanda was selling home appliances as a branch manager for Whirlpool, he succeeded in expanding sales in just a few years to as much as 1.3 billion yen using 3 regular employees and 4 or 5 part-timers, by adopting a highly effective approach to selling “white goods.”
However, while he was confident of his own methodology, his best efforts did not bring profits due to unfavorable economic conditions accompanying the drop in the value of the yen from 80 to 125 to the dollar, and he was forced to restructure. This was a turning point for him. He started a new business of his own, a membership-based system for conveying his powerful methodology to small and medium-sized business clients. The consulting mainstream at the time followed the American approach typified by Mckinsey & Company, Inc. The average monthly fee was 15 to 20 million yen, or, for smaller businesses, 0.3 to 0.5 million. In most cases, the service included client calls, review of financial statements, and locating and solving problems, in that order, performed at the client’s location. What brought Mr. Kanda success, however, was his membership system. Under the prevailing approach of the time, six would be the maximum number of clients one consultant could take care of, for a limited annual turnover of 24 to 60 million yen. The membership system, on the other hand, does not limit the number of clients: services can be provided by telephone and fax, and there is no ceiling on annual sales. With a staff as small as 4 to 5, most of the revenues go straight to gross margin. The business expanded steadily: 100 million yen in the first year, 300 million in the second, and 600 million in the third. The business was attracting media attention and his books were enjoying strong sales. Mr. Kanda had established a highly profitable structure for his business, which was unusual for a consulting service.

However, through his numerous consulting engagements, he learned that a successful business does not always equal a successful life. What is important is to look at the whole picture through the windows of both life and business, with a growth curve in mind, and convey something out of the ordinary to the audience.

【Mr. Kanda with graduate students】

(2) Growth curve in business/life

A growth curve can be applied to a 12-year cycle. The life and business cycles often overlap. The growth curve of our life turns into another stage every 3 years. At every turning point, we have a good chance to reflect back on what we were like 12 years ago. A business growth curve varies in terms of things like pace of growth, depending on the product and the market environment, but the length of each stage remains about the same. The turning point from start-up to growth is often initiated by a price decline or entry of a competitor. Overconfidence in growth potential in the maturity stage will typically drag a business into debt during a slump due to the factors like excess capital spending. Management problems are also more likely to occur in the decline stage.

Family relationships are also very important and at the same time very problematic. For example, when a person with an extremely forward-looking and self-reliant personality is successful in business, some members of his/her family or those around always tend to exhibit a backward-looking and dependent posture (opposite personality type).We should take the attitude that if everything is perfect, we will stop growing: the problems and challenges we encounter serve to accelerate our growth.It is important to recognize clearly where we are, predict the proper timing, and maintain a healthy balance.

【Mr. Kanda explains his theory of seasonal cycles】

3. Comments from the minutes-taker
We realized that we must face up to our own life cycles and personal growth stages in starting up or running a business, which was an impressive lesson. While listening to Mr. Kanda tell us that the rule did not apply to most of those who had not taken the first step into life yet, we felt that the way to a fulfilling and balanced life was a theme common to everyone, and, with this in mind, were determined to develop more self-discipline.

Reported by: Nobuko Hiramatsu / Koji Okada
Graduate students in charge of mintues

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