The Mid-term Management Plan, which will be ending in the term ending February 2020, is underway. It is composed of three growth strategies: "Expand Existing Business," "Expand into New Areas," and "More Advanced Management of Human Resources." The company plans to invest a total of over 10 billion yen in all areas within five years up to the term ending February 2022, which is beyond the term of the Mid-term Management Plan.
【Progress in Mid-term Management Plan (FY2/18 - FY2/20)】
Expand of exiting business
In the efforts to expand existing businesses, the company not only tries to strengthen relationships with customers and expand the scale of synergy with ITOCHU, but also pursues a competitive advantage in service quality. In the current first half, sales to ITOCHU Corporation, its group companies and business partners successfully increased to 2,550 million yen (up 17% year on year) in the first quarter, 2,870 million yen (up 19.5% year on year) in the second quarter, and 5,420 million yen in the entire first half (up 18% year on year).
Expand in new areas
To expand into new areas, the company is working on business structure reform (Advanced CRM Platform), service (Advanced BPO), market (overseas business strengthening), and actualization and expansion of synergy with Toppan Printing Co., Ltd. is the second largest shareholder of the company, following ITOCHU Corporation, and is also a business partner of the company. Its business domains include a business using paper as a medium as well as B2B such as web solution and technology, and data management. Collaboration with the company that has points of contact with consumers and has B2B2C as its business domain enables businesses that seamlessly connect companies and consumers. Since December last year, the company's "Promotion Office" has been working on the construction of internal organization, development of business scheme, and establishment of business foundation such as sales collaboration system with Toppan Printing Co., Ltd. After its completion, the company established the "Toppan Alliance Promotion Office" within the CRM Business Head Office to pursue business synergies in June this year. The alliance business called "Digital customer service" utilizing new technologies such as AI will be launched in the second half.
Enhancement of personnel management
The company is working on retention of the employees, strengthening recruitment capabilities, and refining on-site personnel management. In the first half of this fiscal year, a feasibility study on the "new personnel system" that would be the base of these efforts was completed.
New Personnel System
The "new personnel system" will start in the second half, but the company already launched a new system to shift the employment status of about 22,000 workers who have worked continuously for 6 months or longer from fixed term employment to non-fixed term employment last autumn, and it is gradually making a progress. Also, the use of AI-Chat called "AI-Chat for Staff" for the company's employees is expanding. ("AI-Chat for Staff" can respond to inquiries concerning shifts, holidays and working hours, and greet, chat and collect opinions and requests. It boasts 98% correct answer rate.)
Establishment of "SUDAchi" and Financing based on the "DBJ Employees' Health Management Rated Loan Program"
In order to expand employment, the company established "SUDAchi" through which unskilled personnel is employed and supported. Furthermore, the company received loans based on the "DBJ Employees' Health Management Rated Loan Program" from Development Bank of Japan, with the appreciation of its efforts for health consideration for employees.
"SUDAchi" is an education facility for recruiting and educating job seekers who are short in skills such as computer skills and foreign job seekers who wish to work at the company's multilingual call center. It is an effort that focuses on applicants who have not been recruited before because their skills did not satisfy the recruitment criteria. By closely communicating with trainers in charge of education, the participants will gain deep understanding of business contents and corporate culture of the company before they start working (and wages are paid to the employment preparation staff even during the preparation period). In the case of the company that employs 8,000 to 9,000 people every term, about 50% of the people who apply for the company's jobs are interviewed, and about 50% of the applicants who are interviewed are employed. This means that, every term, 8,000 to 9,000 people, namely, the same number of people who are employed, are not able to work at the company, while wishing for employment. By operating "SUDAchi," it becomes possible to broaden the opening of employment on the premise of skill improvement after employment. Approximately 60 people have already started practical work, and the company said that they show a higher retention rate than regular recruits. Furthermore, what is more important than recruitment is retention of employees, which leads to an improvement in personnel efficiency. For this reason, along with the recruitment activities, the company plans to work on "creating a workplace where people can work happily and with peace of mind" for resignation prevention. Incidentally, the high effectiveness of "AI" has been confirmed through detection of the signs of resignation. AI will be used initially for the internal use, and the full utilization of AI in terms of service provision will take place after its technology is further developed.
Meanwhile, the "DBJ Employees' Health Management Rated Loan Program" offered by Development Bank of Japan is the world's first financing menu incorporating employee "health management ratings" in screening and selecting companies with good health consideration for employees and setting the terms of financing. The company's various measures concerning "advanced human resource management" in the Mid-Term Management Plan were recognized and the company received the loan.
CSR activity
As part of CSR, the company concluded a "Collaboration Agreement on Promotion of SDGs and Sustainable Regional Development" with the town of Shimokawa (Shimokawa, Kamikawa sub-prefecture, Hokkaido) and Quon Chocolate (Operated by: La Barca Group, Head office: Toyohashi, Aichi). It will work on the promotion of SDGs via public-private partnership and creation of model examples of sustainable community development with the chocolate manufacturing business by handicapped people using an abolished school in Shimokawa. Specifically, the town of Shimokawa makes use of an abolished school to create a chocolate factory, and the La Barca Group provides the business contents of Quon Chocolate as well as skills and knowledge on employment of persons with disabilities. And the employees of Bell System 24 (people who are employed through the system to employ disabled people) work at the chocolate factory.
【Growth direction】
The company will be expanding business operations using business expansion and sophistication of operations as two wheels on a cart. The company's strengths are its large size, its excellent customers that are positioned as reformers in respective industry, and the on-site capabilities that can meet the needs of these excellent customers (skills and knowledge including recruitment, training, and resignation prevention, and analytical capabilities and past results in the service aspect). By using these strengths, it will expand its existing businesses and expand the sites in Japan and overseas (regarding overseas expansion, the company will develop a strategy while refraining from hasty actions).
Furthermore, ITOCHU Corporation, the largest shareholder, and Toppan Printing Co., Ltd., the second largest shareholder, are shareholders and business partners, and have excellent customers. Together with both companies, the company intends to advance the business by utilizing new technologies such as AI and RPA for the contact center operations.
