Mitsubishi 2000 Annual Report Download - page 5

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Introduced in 1998, RM2001 accomplished many
of the goals it set out to achieve. Everything we are
doing today is making MMC more efficient, more
competitive. But the furious pace of change in our
industry and in the global economy requires another
shift of gear to keep the momentum building.
To begin with, a continuing reassessment of our
passenger car and global production organization is
needed. And, to get slimmer, faster, more responsive
and more competitive, further changes are required
in both the way we run the Company and in our
management base.
To stay apace of the dizzy regrouping witnessed
in the industry landscape in recent years, we decided
the time had come to seek the added firepower and
synergies that come from well-chosen equity al-
liances: with DaimlerChrysler for passenger cars,
and with AB Volvo for commercial vehicles. These
partnerships are born out of a mutual recognition of
the advantages they offer to both sides; of their Win-
Win potential. They are good for MMC, good for
DaimlerChrysler and good for AB Volvo. They are
vital if we are to achieve our originally stated goal of
transforming MMC into a vibrant and profitable
mainstream player.
Charting the way forward to fiscal 2003, the new
Heart-Beat 21 mid-term management plan inherits
the restructuring and efficiency-seeking thrust of
RM2001. It also reflects the much enhanced compet-
itiveness stemming from the reforms completed to
date and from our new partnerships. Providing a
roadmap for growth and for creating and adding val-
ue, Heart-Beat 21 will ensure MMC gets up to speed
at the earliest possible time.
Driven by the Internet and other Information
Technology, the globalization of business in progress
today requires that we adopt a new style of manage-
ment. The rapidly shrinking windows of opportunity
require quicker, more rational decision making and
implementation. To encourage sharing of the ideas
that will create new value, the corporate structure
must be based on integrated functional departments;
impeding partitions must be boldly knocked down.
MMC is building up a winning management base
through a strategy of "Selection and Concentration".
Selection −pointing us away from unprofitable op-
erations; Concentration −the injection of human re-
sources, funds and other management resources into
our most profitable operations. Moving away from
its traditional Japan -centric sales and profits per-
spective, MMC is introducing value-creating Cash
Flow Management principles to increase corporate
value by raising capital efficiency and to bring about
a transformation in the shared awareness and vitality
of Company personnel.
MMC has recently made radical changes to the
structure of the board of directors, which now com-
prises ten directors compared with 36 last year, and
external directors now have a greater say. We have
also introduced a system of executive officers.
Effectively separating the management of capital
from the daily running of the Company, these
changes will enable us to better look after our share-
holders' interests and at the same time focus more on
improving operating efficiencies.
The Company has introduced two new executive
positions: Chief Executive Officer, and Chief
Financial Officer. These changes will speed up the
decision-making process and bring issues of ac-
countability into clearer focus. They will encourage
the speedy and vigorous implementation of the mea-
sures dictated by Heart-Beat 21 and realize an orga-
nization that delivers results faster.
MMC has introduced a new set of management
indices in order to monitor and evaluate corporate
performance. These tools will enable management
to: maximize corporate value; and achieve financial
targets. As a first step, Cash Flow Return on