Divisional Profitability Management System
Driving force to involve all employee in management
The divisional profitability management system is based on an amoeba management system and advantages such as fostering personnel with a sense of management, the realization of Management by All, and proactive business management. It is a business management system where all JAL Group employees face the figures related to company management with the pursuit of maximizing profits. We aim along with the implementation of JAL Philosophy, we aim to realize our corporate philosophy by not only maximizing profit in each division, but also pursuing optimal profits throughout the entire company.
Management Based on the Participation of All Members
Under this system, an annual revenue and expense plan is formulated for each organization, and a management cycle is operated on a monthly basis to steadily achieve this plan. Specifically, the planned figures are updated monthly with the target and prospect figures that take into account the latest situation. All members of the organization work together to achieve their goals. After the actual results are finalized, the factors that cause the difference between the forecast and actual results are analyzed. Subsequently, the leader considers and implements measures based on the analysis results to achieve the annual revenue and expense plan. In this system, the leaders of each organization are responsible for the income and expenditure of their own organization. They gain managerial experience by formulating intentional organizational goals and engaging all members to achieve the goals. This initiative will produce managerial talent.
From the fiscal year 2024, we had decided to incorporate the divisional profitability management cycle into profitability management for each business segment, with the aim of clarifying income and expenditures by business segment and promoting business portfolio management. Based on the income and expenditure plan for each business segment, the person in charge of the business segment involves the relevant organizations to discuss measures aimed at optimizing the financial performance of that business segment. At Group Performance Report Meetings attended by all executives, the earnings situation of each business segment is reported, and the measures to be taken are repeatedly discussed. Based on the principle of “maximize revenue and minimize expenses,” all participants sharing their insights toward achieving the annual earning goal and rebuilding the business portfolio. By leveraging the strength of the divisional profitability management system and achieving growth in each business segment, we will contribute to the promotion of Business Model Reform and lead to the sustainable growth of the JAL Group.
