Lessons from ‘Disco’s Innovative Organisational Management’ on Eliminating Orders and Dissatisfaction

Whilst ‘orders from superiors’, ‘barriers between departments’ and ‘fixed divisions of labour’ were the norm in traditional corporate organisations, DISCO has developed a unique system that fundamentally transforms these aspects. At the heart of this lies a single keyword:

Eliminating ‘dissatisfaction’

These words are the key to balancing organisational performance with individual motivation at work.

Disco’s Unique System and the Mechanisms That Made It Possible

As a practical approach, we have introduced the following four flexible systems:

• Utilising the in-house currency ‘Will’
• Freedom of transfer (transfer between departments)
• Flexibility regarding place of work (fixed location)
• Freedom in carrying out tasks (anyone may do them)

① How the in-house currency ‘Will’ works

Since 2003, Disco has implemented a unique system that treats all internal activities as ‘transactions’. Unlike traditional management accounting, this system visualises the income and expenditure of each task—much like a self-employed person would—thereby fostering a sense of personal responsibility for their work amongst every employee.

Specific examples:

• When the Sales Department sells a product to a customer, the sales revenue is converted into ‘Wills’. A portion of this constitutes the sales profit.
• The manufacturing division generates its own profit by paying the sales department for the cost of purchasing products.
• We use ‘Will’ to handle matters such as meeting room hire fees and work requests to colleagues.

This system transforms the traditional ‘command-and-control’ relationship into a ‘mutually agreeable working relationship’. When a manager asks a subordinate to carry out an urgent task, if they offer one million Vir as payment, the subordinate is likely to accept without complaint. As failure to deliver results will mean they no longer receive work, this naturally leads to high-quality outcomes.

② Freedom of movement

Whilst in traditional companies there was a fixed notion that ‘the company decides which department you are assigned to’, at DISCO there is a system in place whereby employees can transfer freely if they wish to do so and the receiving department agrees. This system effectively came into operation around 2012.

• You can apply to transfer to the department of your choice, in line with your skills and career aspirations
• As department heads cannot force their staff to stay, they must constantly work to facilitate staff turnover
• Even if an employee at head office is transferred to a factory, they have the option to ‘continue working whilst living in Tokyo’

This system ensures that staff allocation between departments is based on ‘voluntary choice’ rather than ‘inequity’, thereby improving the organisation’s overall performance.

③ Freedom of occupation

This system, introduced around 2016, is based on the principle that ‘anyone within the company can carry out any task’. Under the traditional departmental structure, personnel management is the sole responsibility of the HR department; however, if an efficient system is developed, other departments and employees can also take on this responsibility.

• By breaking down departmental barriers, it is possible to make operations more efficient
• By earning the in-house currency ‘Will’, you can visualise your own achievements, just as a self-employed person would
• Traditional administrative functions are also regarded as tasks that anyone within the company can carry out

Supplementary note: On the ‘quality of interpersonal relationships’ that fosters a sense of fulfilment at work

Kazuma Sekke, President of Disco, has cited data showing that 90 per cent of employee satisfaction stems from the ‘quality of interpersonal relationships’. This forms part of an approach that respects individual autonomy—an aspect that has often been overlooked in traditional organisational theory.

• High pay is also a factor in job satisfaction, but once it has been raised, it is difficult to lower it
• Predictability is important. If rewards commensurate with performance are clearly publicised, dissatisfaction will disappear.
• A culture that embraces people who enjoy hard work. By stating this clearly, we attract top talent.

Summary: Principles for Resolving ‘Dissatisfaction’ at Work

An organisation is an environment in which individuals can exercise their abilities of their own accord. To achieve this, it is important to redefine the traditional relationship based on ‘orders’ as a ‘mutually agreeable arrangement’.

There are three key lessons to be learnt from the Disco case study:

1. By fostering a culture that does not tolerate ‘acceptance of the status quo’, the performance of the organisation as a whole will improve.
2. Visualising individual accountability makes it easier for employees to take responsibility for their own work.
3. The quality of interpersonal relationships is at the very heart of job satisfaction.

Applying this principle to day-to-day operations and HR policies will reduce conflict within the organisation and make it easier to achieve results. The relationship between managers and subordinates will also evolve into one of mutual dependence, much like a business transaction.

‘The success or failure of work depends on the quality of interpersonal relationships. Doing away with the traditional relationship based on orders and building mutually agreeable working relationships—this is the foundation of organisational management and, at the same time, the most effective way to enhance individuals’ sense of responsibility towards their work. Disco’s aim was not merely to improve efficiency, but to redefine ‘work’ itself as something of value. This perspective will serve as a common principle for organisations of any size or sector.

The concept of ‘dissatisfaction’ is an issue that every business professional should reflect upon. It has the potential to transcend workplace conflicts and become an investment in one’s own personal growth. I would recommend using this as an opportunity to reassess your own approach to work.