TOYO CONSTRUCTION I INTEGRATED REPORT 2024component that ensures wage stability but offers less of a reward for taking on big challenges. Changing the salary system is a painstaking process that will require in-depth Matsuki: The Company is pushing forward on a medium-term business plan that runs through 2027, but medium-term plans are not just for management. A successful plan must have good discussion opportunities with business divisions at every milestone and must also ensure that every employee understands the goals that management has set and the actions that are required for the Company to grow. Also, in taking action, we must all be conscious of what is happening beyond corporate walls.Fujii: It is important that everyone across the organization shares a strong desire for growth and works heart and soul to achieve the stated goals of the medium-term business plan. Enabling employees to feel an affinity for the details and the direction of the medium-term business plan while being aware that they are valued participants will be a big step toward success. Personally, I have always looked at business from a numbers’ perspective. I would like management to focus on leading the Company and pay particular attention to consistency between actual results and forecasts and associated strategies. Matsuki: Solid sales capabilities are, of course, a priority for a company to grow and reinforce operations. But a company also needs a strong Corporate Section. I know firsthand the importance of systematically building up the capabilities of the Corporate Section when a company is orienting itself for growth because this division forms the backbone of business activities. Creating a corporate environment conducive to the active exchange of opinions between the Business Section and the Corporate Section without thinking too much about protecting respective territory is integral to effective governance as well. This situation is sometimes referred to as a “healthy violation of airspace.” I believe it is the kind of collaboration to strive for, since both parties help each other but also keep each other in line. Uchiyama: Until now, most projects have been order based, an approach that did not really require the Company, particularly the Corporate Section, to watch market trends or think much about growth strategies. We spoke earlier about human resources, but in the future, employees will have to consider how they, as individuals, will pursue personal growth and career development. In terms of support, the Company should proactively reinforce the capabilities of in-house human resources and cultivate the next generation of executive candidates with an eye toward future business. I hope that as employees consider the career path, some will seek to climb the corporate ladder and become executives. As I pointed out in the discussion about the offshore wind power construction discussions to determine an appropriate direction on compensation. business, management must recognize the increasing mobility of human resources across society and, with that knowledge, promote the mobility of human resources within the Company and sharpen the capabilities of in-house human resources by optimizing overall human capital. I would like to see management tackle this with the understanding that it will ultimately lead to business success and corporate growth. Matsuki: Since Mr. Uchiyama and I were appointed as outside directors on the request of activist investors, we might be viewed within the Company as agents of change to push the activists’ agenda. However, the Board of Directors’ decisions must be made with all stakeholders in mind and should not be influenced by the opinions of a few. In fact, we have expressed opposition to proposals made by the activist groups that recommended us for positions as outside directors. We want it noted for the record that we take a neutral stance regarding management of the Company. Toyo Construction benefits from the diverse experience and knowledge of its directors, as the expertise and experience of each individual fuel lively dialogue that enhances the quality of discussions. We will continue to aim for the Board of Directors to operate by making swift, dynamic management decisions.The offshore wind power construction business will be a challenge of unprecedented scale for the Company. However, venturing into uncharted territory will undoubtedly be an opportunity to enhance the capabilities of in-house human resources, foster momentum in transforming the corporate culture, and drive changes throughout the Company.—— Masato UchiyamaEvery individual, every division is united in aiming to achieve corporate growth29
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