The rapid liberalization of the U.S. electric power industry and the worldwide development of information technology are prompting key Japanese industries to change their structure and management styles.
"Job changers," once branded with contempt as "job hoppers," are being promoted to challenging positions in new businesses, while new salary systems are being adopted that reward ability and accomplishment rather than longevity.
"We don't think that staff planners recruited upon university graduation could have come up with such a new business idea," said a top executive of Kansai Electric Power Co., referring to Kepco's Delaware subsidiary, Naniwa Energy LLC, which will begin generating power in Nevada in June.
The idea came from Shogo Tokura, 41, an international group manager in the planning section. Tokura suggested that six gas turbine generators idled due to sluggish domestic demand could be used to generate power in Nevada. The generators have a capacity of 360,000 kw.
Tokura graduated from university with a major in chemical engineering to join a trading company, selling industrial plants overseas.
"The trading company is trading too many commodities and is too subdivided. Moreover, it views its business partners as outsiders, which is why I was unsatisfied," Tokura said.
He left the company three years ago to join Kansai Electric Power because he thought he could do business with just one commodity -- electric power.
"Personnel mobility can be advantageous if it leads to personal growth," he said.
Analyzing the company's balance sheet, Tokura noticed numerous power-generating facilities were sitting idle because of sluggish power demand, increased competition from gas and trading firms, and the growing popularity of micro gas turbines.
"It is meaningless for all of Japan to domestically employ idle facilities. So, I have decided to urge the company management to tie up with Morgan Stanley Dean Witter of the U.S., which deals in electric power," he said.
"Our aim is also to acquire knowhow about trading electric power in the U.S., where liberalization has been progressing, in order to prepare for liberalization in Japan."
Nippon Steel Corp., which last year regained its position as the world's top crude steel producer, will inaugurate a high profit-yielding information system subsidiary in April -- NS Solutions Corp. Its shares will be listed on the stock market next year.
The parents of NS Solutions -- Nippon Steel's Electronics & Information Systems Division and Nippon Steel Information & Communication System Inc. -- have many customers for their supply chain management, which uses computers to effectively control production, logistics and sales.
They have also handled an Internet music distribution system for Sony Corp. and a management system for options and futures derivatives for most major commercial banks, including the Bank of Tokyo-Mitsubishi.
"We started computer management at our Kimitsu and other plants for 24-hour operations in the 1970s and have accumulated SCM and other software. This past accomplishment has now begun to bear fruit," said a Nippon Steel official.
The new company will have a workforce of about 2,200, most of whom are specialist system engineers. It will introduce a reward system of stock options and other benefits for staff who perform well.
The ability-based salary system at the parent company is not enough enticement to keep superior engineers who are in short supply and head-hunting targets for other companies, the official said.
"The new company will be the leader of the Nippon Steel group's IT business," the official said.
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