We have defined three types of human resources as important themes for human resource development. In this era of VUCA, where the future is uncertain and difficult to predict, “senior management human resources” are capable of rapid decision-making and leadership that can flexibly adapt to changes. “Innovative human resources” will continue to provide new value in the future, just as we have created innovations in society based on rubber technology. “DX-related human resources” can create new value by utilizing digital technologies to promote more advanced and efficient decision-making and operations and by applying such technologies to business. We will strive to continuously develop these human resources to enhance our corporate value.
In this rapidly changing VUCA era, flexibility and quick decision-making are essential. Therefore, it is crucial to develop senior management human resources capable of calmly making decisions even in uncertain situations and acting with foresight. At the same time, leadership, i.e., the ability to effectively head teams and adapt flexibly to changes, is indispensable. We aim to build a system that develops individuals who are constantly learning and capable of achieving personal growth.
Sumitomo Rubber has driven innovation by providing new value to society based on rubber technology. Even today, we continue to develop new technologies, such as the “SMART TYRE CONCEPT,” “tyre manufacturing utilizing hydrogen energy,” and “vibration control technology employing high-damping rubber.” Moving forward, we will cultivate both the human resources and the corporate climate necessary to continue driving innovation in a new era.
More advanced and efficient decision-making and business execution are needed by leveraging digital technology to fundamentally transform business models and work processes. To successfully carry out this transformation, not only knowledge of digital technologies but also the ability to apply them to business, create new value, and adapt flexibly to change while demonstrating leadership in driving digitalization within the organization will be required. We will establish a system that fosters, retains, and empowers such digital talents.
With the aim of improving and unifying leadership at the senior management level, we have invited professional executive coaches from outside the Group to provide regular coaching to Executive Officers and above (and some locally recruited CEOs overseas). Monthly coaching sessions are held to discuss management issues and organizational challenges. In addition, a leadership-focused weekly email newsletter from the executive coaches is distributed to all officers. Reviewing each of the responses to the newsletter helps deepen understanding of leadership and strengthens collaboration among officers.
Leadership is an important aspect in developing senior management human resources. To improve leadership, we implement an annual cycle that involves knowledge input, behavioral output, and feedback from others. As part of the input, training programs covering leadership, followership, and communication are offered, along with e-learning, correspondence courses, and optional online training. For feedback, individuals can gain objective insight into their own leadership habits through 360-degree feedback. In addition, an annual organizational climate survey allows them to assess the condition of their respective organizations. Through these measures, we are continuously improving leadership skills.
In order to foster innovation, systems and culture are obviously critical, but we also view human resource development for producing the systems and culture as important. Based on this belief, we launched an innovative human resource development program in 2023, and 17 people participated in it in its first fiscal year. In the first fiscal year, we received support from three universities from the planning stage to the actual hosting of the program and conducted the program intensively over a period of about two months, including lectures to foster an entrepreneurial mindset and final presentations by each group.
In 2021, with the introduction of a new role-grade system, we transitioned the personnel system for the management level from a conventional system of treatment based on a skill-based qualification system to a more job-based approach. In line with this change, we divided the previously singular management-level path into a management track and a specialist track, providing a framework in which specialized talent can excel. We are also considering expanding this framework beyond the management level in the future.
In 2023, we revised the wording in the work regulations regarding side jobs and secondary employment to support employees who wish to pursue such opportunities. By engaging in external work, employees can gain new perspectives that they can bring back to their roles at our company, contributing to more efficient work styles and fostering innovation.
At the end of each year, we hold an event to recognize the year's accomplishments. There are three award categories: the Techno-Science Award, the BTC Annual Award, and the Sustainability Award.
The Techno-Science Award honors innovative achievements in areas such as basic research, technology development, equipment development, and production technology, which contribute to creating seeds of innovation for the next generation. The BTC (Be the Change) Annual Award is presented for initiatives that have led to significant improvements in either or both organizational culture and foundations for profitability. The Sustainability Award recognizes outstanding activities in each department that adhere to our GENKI (G for governance; E for ecology; N for next; K for kindness; and I for integrity) Sustainability Activity Guidelines, which reflect our Sustainability Vision: “Uniting our diverse strengths, we will make our future sustainable and “GENKI” (vibrant) by delivering products and services that are friendly to the environment and society.” In 2023, the Techno-Science Award's Grand Prize went to "Active Tread development," which has played a significant role in actual business innovation.
<Results>
Techno-Science Award: 1 Grand Prize, 6 Excellence Awards
BTC Annual Award: 7 prizes
Sustainability Award: 2 Grand Prizes, 4 Excellence Awards, 3 Special Merit Prizes, 11 Encouragement Prizes
In October 2022, we launched DX-related human resource training programs for all 3,500 employees in indirect divisions. We view DX literacy as a skill that every employee should possess universally, and we categorize individuals with more advanced skills as business core personnel, professionals, and data engineers, and train them accordingly. As we aim to crystallize various DX measures by 2025, we strive to complete the development of these human resources by that year to establish foundations that will facilitate the transition of the entire Sumitomo Rubber Group to data-driven decision-making and action. By the end of 2023, we had already exceeded our initial target and had been able to conduct training for 2,220 employees. For the course for professionals, we implemented Project-Based Learning (PBL) in which students solve real workplace issues while learning. This helps participants retain knowledge and promotes understanding of the workplace.
<Results and Targets>
Number of persons who had completed DX literacy training as of the end of 2023: 2,220 persons (target for end of 2025: 3,500 persons)
To foster a culture of rapid and advanced decision-making through data visualization, we began the full-scale deployment of Tableau, a self-service business intelligence tool, in 2018. It is widely used in various areas of our business, including the manufacturing, SCM, sales, and solutions divisions, and having deployed it at another three sites in 2023, it is now in operation at 14 locations globally. With this initiative, we aim to enhance data literacy across departments, facilitate sophisticated data analysis and push ahead with the development of data-driven human resources.
To improve efficiency in routine administrative tasks and shift resources to higher value-added activities, we have been pressing ahead with the use of RPA. By employing RPA robots to handle tasks like data entry, which were previously performed manually, as of the end of 2023 we had achieved over 75,000 hours of efficiency gains compared to when we introduced RPA in 2018. This figure includes not only gains from the RPA robots developed by IT departments but also more than 44,000 hours of gains from RPA robots developed by employees in various departments (citizen development). This has contributed both to improving administrative efficiency and enhancing employees' digital proficiency.
In the process of developing golf balls, we introduced RPA to analyze how they fly, a key attribute of the balls. RPA was used for collecting and aggregating data, including machine-measured data and numerical representations of the feel when a person hits the ball. These tasks, which were previously performed manually and took about 50 hours a month due to the huge volume of data, were transformed into a process that now requires only a single click (to activate the RPA), reducing the time taken to just 12 hours per month. With less pressure from tight deadlines, employees now have more mental space and can get involved in product development, something that was impossible for them before due to the heavy burden of conducting the analysis.
By providing employees with positive transformative experiences, we aim to strengthen our internal business foundation and invigorate the workplace culture.
We believe that one of the key elements for advancing DX internally is the presence of communities (connections). Communities share knowledge, enhance communication, and contribute to the generation of synergies. To build such connections, we host an annual event called Digital Innovation Day. During this event, we share updates on DX initiatives from various departments and invite external speakers to present the latest case studies from other companies. (In 2023, the event was held on November 28 and 539 people took part)