How to Read PRODUCTIVITY MIRACLE: HOW TO RE-BUILD "POST CORONA ERA" bUSINESS AND PRODUCTIVITY OF YOUR COMPANY, AND HELP TURNAROUND THE ECONOMY MOBI
Due to the CORONAVIRUS SHOCK, GDP in the first quarter of 2020 was a terrible -28.1.8% for Japan, -32.9% for the U.S, and -59.8% for the UK. Drastic increase in unemployment rates are another indication of the world high speed worsening economy. This condition will be hampering the world economy for a long period of time. There are many knowledgeable people seeking to find the WAYOUT, and it seems many others are also beating around the bushes to get rid of it!Dr. Makoto Kawada, Ph.D. in Economics has invented a scientific approach by INTEGRATING MANAGEMENT, ENGINEERING, AND ACCOUNTING TO RE-BUILT “POST CORONA ERA" BUSINESS AND PRODUCTIVITY OF SMEs, AND HELP TURNAROUND THE ECONOMY OF THEIR OWN COUNTRY AND THE WORLD, MAKING "PRODUCTIVITY MIRACLE"Dr. Makoto KawadaPh.D EconomicsProfessor Emritus, Meijo University Japan-ESD21 Economoci Susuainable Development 21 centery-SCCC *Supply chain Conversion Cycle” patent pending-BSQ Balance Sheet Quality (lot and Fintech)-MEIT – Converted Japan Economice and trade ministry to new knowledge patternThe origin of our ideas for Post-corona era backs to “NAA conference” at Bermuda in 1988 entitled as “Global Solutions to the Global Problem” , where Prof. Kapan & Johnson, co-writers of then best seller Relevance Lost - the Rise and Fall of Management Accounting. Dr. Goldratt who advocated “Theory of Constraints”, and Mr. Kawada, then Corporate Planning Department Manager of Japan’s machine tool manufacturer, who disclosed IBIS (Integrated Business Information System) that proposed how to integrate then disintegrated production and accounting relationship. From the aspect of velocity-oriented productivity of Lean-TPS, the Income Statement is not “flow” information, but just “the difference between two fixed points with unknown variable in-between”. From scientific aspect, the Balance Sheet is “not stock, but flow” information that can constantly measure the sustainability of the enterprise. Now, in the 2020s, the time of DX (Digital Transformation) era has come in which the Balance Sheet can actually be updated in real time.July in 2020, almost forty years after the Bermuda conference in the late 1980s, Mr. Klaus Schwab, Chairman of World Economic Forum, advocated to convert from "shareholder capitalism" to "stakeholder capitalism" in order to build the post-Corona smart society, thus practically opening the way for “Global solutions to the global problems. Perhaps, whether the management can accept the notion of SCCC that “the earlier payment to suppliers” improves the global BtoB productivity” becomes the divide of success of the stakeholder’s capitalism. Productivity miracle requires “Eureka” feeling with organization, and the more important is the reasonable setting of KPI suitable for the company. That was SCCC in this case. SCCC theoretically coincides with inventory-negative, “Lead-Time” productivity (Toyotism), while another KPI, Profit in the Income Statement fits for inventory-affirmative “Resource Operation” productivity (Fordism). In manufacturing industry, history has proved that Toyotism won Fordism as the knowledge pattern workable in the Post-corona era. In the Shareholder’s Capitalism, as Joseph Stiglitz, a US Nobel Laureate economist said, “Management were forced to pay attention to the current share price so that indexes like PER or ROE that relies on the short-term reporting profit, thus robbing American managers of the energy to pursue a company’s mid- or long-term reputation. ” In the Stakeholders’ Capitalism for the coming “After Corona era”, these good-old, short-term profit-oriented indicators must be reinforced by “Sustainability-focused” indicators like SCCC (Supply Chain Cash Conversion Cycle) or BSQ (Balance Sheet Quality). We can.
