Management ideas, in plain words
Terms you may meet in books, meetings and proposals, from Japan, Europe and the digital world, explained simply.
5S Japanese
Five habits for an orderly workplace: sort, set in order, shine, standardise and sustain. Simple, visible and often the first step towards higher quality.
Advisory board Governance
A small group of experienced people, often including outsiders, who advise owners without taking control of the company. A light alternative to a formal board.
Artificial intelligence (AI) Digital
Software that can recognise patterns, write, summarise or answer questions. A powerful tool that can help you build. It is most useful when it supports people who know the business well enough to check its work. Like any powerful tool, it needs guidance and control. It is not a replacement for human intelligence, but used wisely it can reduce your workload.
Change management Management
The practical work of helping people adopt a new way of working: explaining why, training, listening to concerns and following up.
Core competence Strategy
What a company does better than others and customers value most. A term made famous by C.K. Prahalad and Gary Hamel in 1990.
Corporate governance Governance
The rules and structures that decide who makes which decisions, how they are checked and how owners are informed.
Digital transformation Digital
Changing how a business works with the help of digital tools. The emphasis should be on the business change, not the technology.
Dual vocational training European
The German and Austrian system in which young people learn a trade partly in a company and partly at school, usually over two to three and a half years.
ERP Digital
Enterprise resource planning: one software system for finance, stock, purchasing, sales and often production. Powerful, but demanding to introduce.
Family charter Governance
A written agreement on how a family relates to its business: who may work in it, how decisions are made and how the next leader is chosen. Also called a family constitution.
Genba / genchi genbutsu Japanese
'The real place' and 'go and see for yourself'. Understanding a problem by observing it where the work happens.
Hō-ren-sō Japanese
Report, inform, consult: a Japanese habit of keeping colleagues and managers informed, so problems are raised early.
Kaizen Japanese
Continuous improvement through many small steps, often suggested by the people who do the work.
KPI Management
Key performance indicator: one of the few numbers that tell you whether the business is on track. Fewer, well-chosen KPIs are better than many.
Monozukuri Japanese
Literally 'making things': the Japanese spirit of craftsmanship and pride in making products well.
Nemawashi Japanese
Preparing the ground: speaking with the people involved, one by one, before a decision is formally taken, so it is understood and supported.
Pilot project Management
A small, time-limited trial of a new idea or system, to learn before committing fully.
Process map Management
A simple drawing of how work really flows, step by step. Often the most revealing hour a management team can spend.
Shinise Japanese
A long-established Japanese business, often more than a century old, known for continuity, reputation and care for future generations.
Succession planning Governance
Preparing, well in advance, for the day a founder or key manager hands over: who, when and how.
Books we return to
- Hidden Champions of the Twenty-First CenturyHermann Simon · Springer, 2009Why focused, medium-sized companies can lead the world. Also published in Vietnamese.
- The Toyota WayJeffrey K. Liker · McGraw-Hill, 2004Fourteen management principles from Toyota, explained with practical examples.
- Kaizen: The Key to Japan's Competitive SuccessMasaaki Imai · McGraw-Hill, 1986The classic introduction to continuous improvement.
- Profit from the CoreChris Zook with James Allen · Harvard Business School Press, 2001Growth by strengthening your core business first.
- The Effective ExecutivePeter F. Drucker · Harper & Row, 1967Short, timeless advice on how leaders should spend their time.
- Out of the CrisisW. Edwards Deming · MIT Press, 1982The American who helped shape Japanese quality thinking, in his own words.