5. Strengthening Consolidated Management
Signs that the era of full-blown consolidated management is here are unmistakable. In Japan, accounting rules have progressively become more "consolidation" oriented, while security analysts and institutional investors have already begun basing their judgments on consolidated performance. At Hitachi, too, there is an urgent need to extend the concept of consolidation beyond a mere method of accounting to encompass stronger management aimed at boosting the efficiency of the more than 1,000 companies of the Hitachi Group. It was with this in mind that the Hitachi Group Committee, composed of the Chairman and President of the parent company and six persons from Hitachi Group companies, was set up in October last year. To encourage a frank and lively exchange of opinions, the Group company members are urged to participate not as representatives of their companies' interests but as individuals. Further, in June, the General Meeting of Shareholders is expected to create a new post of Vice Chairman of the Board to provide a company officer specifically responsible for consolidated management. This position is to be assumed by Hiroshi Kuwahara, currently Executive Vice-President. On the one hand, the considerable benefits of the long-standing policy of affiliated company autonomy will be maintained, while on the other, powerful international competitiveness will be pursued through an aggressive restructuring and streamlining program, including acquisitions and sell-offs if necessary. By this, the already highly respected "Consolidated Hitachi" will grow even stronger. |
