Introduction
What problems are you currently facing?
Do you ever feel like you can't see what the future holds due to rising prices, a weak yen, and increasing geopolitical risks? Whether it's choosing investment targets, setting prices, or developing recruitment strategies, you might be struggling with the dilemma of not knowing "what the right thing to do is."
This article will discuss Itochu Corporation's leading company.Masahiro Oka, Chairman and CEOThis presentation will explain the "crawl-forward management" concept advocated by [company name]. It will reveal the core principles of how companies can survive and grow in the highly uncertain environment of 2026.
We will avoid technical jargon and present practical know-how and concrete examples in a format that is easy for readers to understand.
"Crawl-forward management" is the right approach in times of uncertainty:
Building a method for steady progress
Chairman and CEO Masahiro Okaoka commented on the business environment in 2026 as follows:
"The most important issues are high prices and measures to combat the weak yen. Many things, including raw materials and gasoline, are getting more expensive. We need to move towards a stronger yen. To do that, the Bank of Japan must raise interest rates, but at the same time, the government is implementing large-scale economic measures. If concerns about the country's fiscal deterioration arise, the yen might be sold off, leading to further depreciation."
Thus, in an environment where uncertainty is overwhelming from both within and outside the country, trying to make investment decisions and judgments by looking "forward" easily leads to taking on significant risks. Mr. Mukaito explains that"The future is uncertain."That's how it's expressed.
The proposed solution was "crawl-forward management." This is,With a firm footing, take one step at a time.This is the underlying idea. Specifically, there are three key points:
It's a bad idea to look ahead without paying attention to what's right in front of you.
In highly uncertain environments, it's less risky to focus on steadily building upon what's in front of you rather than waiting for future opportunities.
I don't gamble.
Even in a volatile stock market and investment environment, emotional trading and hasty decisions should be avoided. Don't get carried away with investments that are only temporarily gaining attention, such as AI-generated stocks.
Simply "refining" existing businesses is not enough for growth.
Simply continuing to streamline current operations will only result in annual growth of around 5-101 TP3T. New investments are necessary, but large-scale investments in areas where we lack expertise should be avoided.
Thus, the phrase "crawling forward" evokes the image of moving slowly but steadily. In the business world, there is often a demand for "achieving big results in a short period," but in times of great uncertainty, "steady accumulation" is what leads to long-term success.
Specific measures:
The importance of domestic investment and pricing strategies
Mr. Oka emphasizes that, as a trading company, it is taking a proactive approach to domestic projects, arguing that "overseas investments are too expensive." He believes that the weak yen makes overseas investments too costly, and that it is more rational to look for good, inexpensive projects within Japan.
As an actual example, Itochu Corporation has CTC (Itochu Techno-Solutions) andDescenteBy making related companies subsidiaries of 100%, the company is strengthening its domestic operations. This move is influencing other trading companies as well, creating a trend of "let's take another look at domestic projects."
On the other hand, some argue that a "well-thought-out price increase" can actually be an opportunity. Simply raising prices because "costs have risen due to inflation" will quickly dampen consumer spending. However, the view is that companies that strategically raise prices by adding a little qualitative value to their products will succeed.
The important point here is to look ahead to "growth from the starting salary." Mr. Mukai says, "Raising the starting salary doesn't mean much." "I wonder if it's a good idea for students to join a company just because the starting salary has increased by 10,000 or 20,000 yen. It's more important to think about what dreams they have after joining the company. If they know how much they can be compensated if they become a section chief or department head, they will have a goal to work towards and will be motivated to do their best," he says.
This highlights the importance of showing not just the absolute amount, but also the "path to growth" when designing a compensation system. Long-term career paths are more effective than short-term benefits in motivating employees.
Inflation cycles and corporate responsibility
Mr. Oka says he aims for an "ideal inflationary cycle" where corporate performance improves, employee salaries increase, and that money is then spent on consumption. He also states that "we are currently in a transitional period."
This context includes elements of corporate social responsibility (CSR). While avoiding easy price increases, the company emphasizes that "it is important to be a company that shines in both qualitative and quantitative aspects." This means that "not only profits but also working conditions are important" and "simply being kind to employees is not enough; a balance is necessary."
At Itochu Corporation, there is currently a system in place where employees who are evaluated as performing well can earn up to approximately 40 million yen annually at the部長 (department head) level and approximately 35 million yen at the 課長 (section chief) level. This is a clear incentive system that increases compensation according to performance.
Even more important is the attitude of "we must use our ingenuity." In an environment of rising prices, it's not enough to simply lower costs; we need to think about setting prices while "adding even a little qualitative value to the product." Consumers don't just pay for cheap products; they also pay for things because they "have value."
Summary
In these uncertain times, we should not look ahead, but rather focus on what's right in front of us and move forward steadily. At the heart of the crawling-forward management style advocated by Mr. Mukaito is building long-term trust rather than being fixated on short-term results.
In today's business environment, new fields such as AI and digital technologies are attracting attention, but before jumping into them, it is important to solidify your company's foundation. Whether it's selecting investment targets, setting prices, or developing recruitment strategies, "certainty" is the most important indicator.
At the same time, companies need to make efforts to create an "inflationary cycle." It is the responsibility of companies to increase employee salaries, which in turn stimulates consumption and contributes to the revitalization of the overall economy. Considering the balance with society as a whole, rather than simply pursuing profits, is the key to long-term success.
