Sustainable Growth:

Spin Outs

Bunsha: Divide and Prosper

A Japanese Spin-off Concept for Successful Business Growth

By: Vadim Kotelnikov

Founder, Ten3 Business e-Coach Inspiration and Innovation unlimited!

 

See the Big Picture first

 

"Kuniyasu Sakai reveals one of Japan's best kept secrets, the true engine of innovation that has made it one of the most dynamic economies of the last forty years."  ~ Ken McCarthy, E-Media

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Bunsha: Divide and Prosper (case study) Case Study Getting Rid of Bureaucrcy

NEW BUSINESS MODELS (Ten3 Mini-course)

 

What is Bunsha?

Bunsha means company division. In practice in means routinely spinning off companies from the core group.

 

Co-founder of one of Japan's foremost high-tech manufacturing groups, Mr. Kuniyasu Sakai has spent nearly half-a-century building more than forty stable and profitable companies. Sakai's experience as a successful manager of a large group of small companies led to the development of his business philosophy known in Japan as Bunsha, or "company division."

The Origin of Bunsha

Kuniyasu Sakai and his partner, Hiroshi Sekiyama, are legendary managers in Japan. They don't buy the "bigger is better" concept. Kuniyasu Sakai and Hiroshi Sekiyama started a business together in the aftermath of World War II.

Over the next few decades they turned it into a highly profitable business. Rather than build a single, giant firm, they divided it, and then kept on dividing. Always keeping each of their firms at its optimum size.

In the process of creating a prosperous Bunsha group of companies, they discovered how to keep their companies on the cutting edge, their employees productive, and their clients happy, all at the same time. Their method is what Mr. Sakai calls bunsha (literally, 'dividing companies'), a system he and Mr. Sekiyama developed over more than 40 years of real-world corporate management. They created a group of more than 40 thriving, independent, high-tech manufacturing companies through bunsha (company division). Once a company is "successful," they fear that bureaucracy and complacency will set in. What do they do? They divide it.

The Key to Bunsha Philosophy...

Bunsha in Brief...

Give each company a full complement of functions...

Pick capable leaders, then stand back and let them lead...

See bunsha as a means to alleviate unemployment and promote entrepreneurship...

Remember that small entities are more likely to adapt and survive rather than expect the environment to adapt to them...