With Love, From Harvard: When a Research Trip Turned into an Immersive Experience of Understanding OMRON's Uniqueness

With Love, From Harvard: When a Research Trip Turned into an Immersive Experience of Understanding OMRON's Uniqueness Visit of W. Carl Kester, Harvard Business School Emeritus Professor, to OMRON Kyoto Taiyo

OMRON has been committed to supporting the active social participation of people with disabilities for over 50 years, a commitment inspired by our founder, Kazuma Tateishi. We are working towards the creation of a society where everyone, regardless of their abilities, can thrive. One of the production sites where employees with disabilities play a central role is OMRON Kyoto Taiyo. What initiatives are in place in OMRON's manufacturing environment that allow diverse talents to fully express their individuality and capabilities?
We would like to introduce our initiatives with the following reprint of an article that appeared on October 30th in Diamond Online.

In June 2024, 33 faculty members from Harvard Business School visited 14 companies as part of a Japan Faculty Immersion program, organized for the first time in about 10 years. Among the companies they visited was OMRON Kyoto Taiyo, a company dedicated to promoting the employment of people with disabilities. Why did they choose to visit OMRON Kyoto Taiyo? What aspects caught the attention of the faculty? We spoke with Professor W. Carl Kester, one of the faculty leaders of the Japan Faculty Immersion. (Interviewer/Author: Chie Sato)

Highlights from Our Eye-Opening Visit to OMRON Kyoto Taiyo

Chie Sato: A team of Harvard Business School faculty visited OMRON Kyoto Taiyo, an OMRON Group company that promotes the employment of people with disabilities, on June 21, 2024.Why did you choose to visit OMRON Kyoto Taiyo?

W. Carl Kester: There are two main reasons why we chose to visit OMRON Kyoto Taiyo. First, we wanted to visit at least one manufacturing company, as manufacturing is one of Japan's core strengths, and OMRON is renowned as a leading manufacturer.

Second, we were interested in visiting a company with a strong sense of social purpose, given that many of our faculty members emphasize the importance of corporate purpose in their courses today.

Thus, OMRON Kyoto Taiyo held a dual appeal for us: it offered an opportunity to observe Japanese manufacturing efficiencies while showcasing how the company meaningfully supports and leverages a diverse workforce through its unique manufacturing facility, which employs many individuals with various disabilities.

Chie Sato: What interested the faculty the most during their visit?

W. Carl Kester: What was truly astonishing was how innovative they were in providing the jigs, auxiliary equipment, and semi-automatic machines that enabled people with any type of disability to contribute to the production process. Rather than adopting a one-size-fits-all approach, they made a comprehensive effort to listen to unique needs and develop unique solutions for every single type of disability.

What was amazing was how OMRON Kyoto Taiyo could accommodate people with such a wide variety of disabilities -- sight disabilities, hearing disabilities, mobility disabilities, and cognitive disabilities -- and effectively leverage their talents, a feat that requires extraordinary efforts at all levels of the company.

I've visited factories where you can see that a few people in wheelchairs have been accommodated, but I've never seen such a wide range of individuals with so many different needs being so fully accommodated.

Significance of the Commitment to OMRON's Mission

Chie Sato: Why do you think OMRON Kyoto Taiyo has been able to continue its unparalleled social business for so many years?

W. Carl Kester: Our faculty was particularly interested in this point -- how do they run a business like this in a sustainable way? It was amazing to see that they have maintained this type of business for almost 40 years.

It seemed to me that much of their success stemmed from the mutual commitment that everyone at the factory had to the mission of OMRON and Japan Sun Industries (Taiyonoie). From management to regular line workers, everyone displayed a deep commitment to what they were doing.

It also stemmed from their continued willingness and confidence that any problem could be solved, which was the essence of Japanese continuous improvement. This mindset led them to believe that, with their technology and creativity, they could create a place where people with different types of disabilities could fully showcase their talents.

Chie Sato: What are the overall benefits to the OMRON Group of having OMRON Kyoto Taiyo as a special subsidiary?

W. Carl Kester: Since its foundation, they have prided themselves on their mission to improve lives and contribute to a better society, guided by their core values: "Innovation Driven by Social Needs," "Challenging Ourselves," and "Respect for All."

Among these social needs are, of course, physical needs, and creating a place like OMRON Kyoto Taiyo is the very embodiment of faithfully upholding these values.

To be honest, this subsidiary is not a major part of OMRON's overall global performance. However, it is living proof of the company's belief in its mission: a company is a public entity of society. I believe it holds disproportionate importance for OMRON because of what it signifies about the company and how it functions.

The Unique Benefits of Working on the Ground Instead of Online

Chie Sato: Remote work became popular in the U.S. during the pandemic, allowing many people with disabilities to work online from home. Do you think companies that require employees to commute and work in factories are old-fashioned these days?

W. Carl Kester: I guess you might say that, considering how much gets done today in the high-tech and interconnected world we live in. Indeed, remote work has opened doors for people with disabilities, but for the tasks being performed by people at OMRON Kyoto Taiyo -- such as making sockets and sensors -- it requires individuals on the production line to make it happen.

In many ways, I think it's very modern in terms of its values and attitudes. I believe that providing individuals with various types of impairments the opportunity to be in a facility, on the floor, working with others daily, interacting, or staying in company dorms is a good thing.

This must be useful for being part of the community that's right there, whether in the factory or elsewhere, offering different types of growth opportunities compared to remote work.

As I mentioned earlier, many of our faculty members recognize the importance of a firm's social purpose and study and discuss it in their courses today. So, while it may seem old-fashioned, it's not old-fashioned at all. Rather, it's at the forefront in terms of its values and attitudes.

Signs of Japan's Revival: Insights from a Harvard Professor

Chie Sato: As one of the faculty leaders of the Japan Faculty Immersion, how would you like the faculty to apply the lessons learned from the Japan Faculty Immersion?

W. Carl Kester: My goal was to help faculty get to know Japan better, stimulate their interest in the country, and encourage them to write cases and conduct research on Japan.

Following the Japan Faculty Immersion, I hope more faculty members become interested in Japan and that we can enhance the engagement between Harvard Business School and Japan.

What we wanted the faculty to see was this: The Japanese economy is really recovering. If there were a theme for this faculty immersion, I would say it is "Look, Japan is back." The Japanese economy, which had been moving sideways with little growth and experiencing deflation, is now rebounding in many ways. There is enormous potential in Japan, including a significant amount of untapped opportunity not only among large, well-known enterprises but also in more rural regions and smaller businesses.

730_2.jpgW. Carl Kester

Carl Kester is a Professor Emeritus of Business Administration at Harvard Business School, where he has served as a Faculty Chair for the HBS Japan Research Center since 2023. He teaches corporate finance in the School's Executive Education programs.
Professor Kester's research and course development focus on international corporate finance and corporate governance. He has taught in executive programs in the United States, Japan, and many other countries. He also teaches corporate finance at the the Nomura School of Advanced Management in Tokyo. For about 40 years, he has visited Japan regularly and has authored or co-authored numerous case studies and articles on Japanese companies, including HOYA, Koito Manufacturing, and MinebeaMitsumi. His personal interests include collecting Japanese ukiyoe and netsuke.
ツゥEvgenia Eliseeva for Harvard Business School

730_3.jpgChie Sato

Chie Sato is an author, consultant, and media personality with several best-selling publications in Japan. She has written numerous articles for newspapers, magazines, and online media, and has given lectures on topics related to business schools, leadership, and management. Before becoming independent, Sato served as Director of Production and an executive producer at The Walt Disney Company (Japan), a management consultant at The Boston Consulting Group, and a TV producer/director at NHK (Japan Broadcasting Corporation). Sato has authored and co-authored 17 books since 1993 (https://www.satochie.com/books), and her books have been translated into Korean, Chinese, and Mongolian. Sato holds a Bachelor of Liberal Arts from The University of Tokyo and a Master of Business Administration from Columbia Business School.

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