To better utilize “Beyond RHQs”

This Report summarizes the discussions held with Japanese entities operating globally on the subject of regional headquarters and the insights gleaned from such discussions. Regional headquarters have contributed significantly to the global operations of Japanese entities, as links, as well as buffers, between the head office and the field. However, conventional methods based on regional headquarters will only go so far; and if Japanese entities are to prevail as global entities and seek further growth, changes must be made to the concept of the global organization itself.

Key Messages

1) Look at the world from a bird’s eye view and shore up world headquarters from the perspective of global optimization.
2) Think beyond the existing framework of regional headquarters.
3) Thoroughly consider concentration and decentralization, the unit for decentralization, and location.

The stages of globalization and
the role of the organization

Maintaining a balance between individualization (Demonstrating respect for each country’s identity and characteristics and adapting to local needs) and integration (Pursuing the economies of scale that go beyond national borders and regions, and effectively utilizing management resources) is essential in prevailing over today’s world market. Japanese entities in the process of globalization are currently considered to be in the transitional stage between “regional optimization” and “global optimization.

An organization’s transition from “regional optimization” to “global optimization” may be broken down into four stages:

Stage 1 The regional organizations are mutually independent and there is minimum coordination between the regions.
Stage 2 Various global committees are set up in order to deal with the increasing need for global consultation
Stage 3 As globalization progresses committees can no longer adequately deal with rising global needs and it becomes necessary to set up world headquarters
Stage 4 World headquarters, in the true sense of the word, capable of determining the global allocation of resources and optimization are established and the global organization is redesigned.

It should be noted that only world headquarters are capable of taking a bird’ s eye view of the world and determining global optimization, and that the reinforcement, there of, is indispensable toward the realization of global optimization.

< Organizational Structure >

Artwork from
"Regional Best"
to the "Global Best"
  • Stage1:Global Federal Organization
  • Stage2:Establishment of Global Committees
  • Stage3:Establishment of World Headquarters
  • Stage4:Redesigning of the Global Organization