Aiming to be a 100-year company, we continue to CRAZY create new value.

Kracie, whose corporate philosophy is "Thinking of People," operates three businesses: daily necessities, pharmaceuticals, and food. In July 2017, ten years after its name change, the company unveiled its "CRAZY KRACIE" vision, aiming to be an enterprise that adapts to change through encounters with the unknown and new ideas, continuously creating new value. What kind of future does President Masahiro Iwakura envision for the company?

This series introduces the future-creating initiatives Dentsu Inc. Business Design Square (BDS) members undertake with partner companies. This installment covers the "CRAZY Creation Department" – a co-creation project driven by Mr. Iwakura and BDS planner Masahide Yoshida to reform the corporate culture and pioneer new case studies – and Kracie's future vision.

Masahiro Iwakura of Kracie Holdings (left) and Masahide Yoshida of Dentsu Inc. BDS

What is the essence of CRAZY? It's precisely because we think for ourselves that we can move toward the same goal

Yoshida: I first met President Iwakura the year before last, when he was still Executive Managing Director. I was very surprised when his appointment as President was announced the day after I visited to greet him, but I felt meeting him the day before was somehow fated (laughs). What impression did we make on you?

Iwakura: We had just emerged from a period of restructuring and finally became a normal company, but I was thinking, "This is merely standing at the starting line." BDS brings together diverse talent unlike a typical advertising agency. Frankly, I thought, "This is fascinating—completely different from the image I had of Dentsu Inc."

Also, with management consulting firms, I think it's common for the consultants to have the target goal set from the start, and then they explore how to get there as they move forward. However, from you all, I heard the words, "Let's think about it together." I was really drawn to those words.

Yoshida: We have a term we coined: "Sherparing." A Sherpa is a local guide who accompanies climbers on mountain expeditions. Interestingly, Sherpas aren't necessarily people who have summited the peak themselves. When humans first reached the summit of Everest, it goes without saying that the Sherpas were also experiencing it for the first time.

This term embodies a stance not of saying, "We've climbed before, so we'll guide you," but rather, "Actually, we haven't climbed either—precisely because of that, why don't we figure it out together?"

Iwakura: Then, when we finally launched the "CRAZY Creative Department," it was also impressive that the collaboration partners everyone introduced us to were companies, organizations, or individuals we had never even considered.

Hearing about "what direction other companies are heading in right now" was also fascinating. Hearing perspectives different from Kracie's was a real eye-opener.

Yoshida: I remember when we set the vision as "CRAZY KRACIE," there was a period we called the confusion phase where the president deliberately avoided defining what CRAZY actually meant. What was the intention behind that?

Iwakura: When I became president, I established the principle of "Overwhelming Ownership Mindset." To foster that mindset, I wanted everyone to debate internally, "What exactly is CRAZY?" and find their own answers. I believe this process is essential for truly internalizing the concept and aligning everyone toward the same goal. If I had provided the answer upfront, it would have become the accepted truth, and people would stop thinking for themselves.

I chose CRAZY as a word to convey that the state of "continuously creating new value" is born when every single employee thinks and acts. It was interesting to see the various interpretations. While the understanding differed slightly by business unit, the overall sense wasn't off.

Yoshida: Information is easy to find, and you can piece together arguments and logic to make a somewhat coherent case. But precisely because of that, it's crucial to distill it through yourself: What did I think? How did I think about it?

Nowadays, there's too much information. If something I thought was delicious gets a low rating on Tabelog, I get anxious. That's a kind of situation where we're overly focused on objectivity and have lost the ability to use our subjectivity well. But on the other hand, feelings like enjoyment or excitement are pure subjectivity, right? I sensed a determination to use that pure subjectivity – what you personally want – in business too.

"MiX" is the keyword. New value emerges through intersection.

Yoshida: Kracie has adopted "MiX" as its keyword, and the broader trend also emphasizes moving away from self-reliance and embracing openness, right?

Iwakura: I think many companies are feeling the limits of self-reliance. Specialization is both a strength and a weakness. Even if you enhance your expertise, it doesn't necessarily increase added value.

To create added value, we must partner with those different from us to generate value. That's why we say, "Let's MiX," and "Let's go out into the world."

Yoshida: Even as you "MiX" and interact with other companies, where do you see the core Kracie identity that must never be compromised?

Iwakura: As long as we don't stray from our management philosophy, "Thinking of People," I believe we're fine. Never failing to meet expectations, whether in quality or service. Continuously thinking of the employees who work at Kracie and continuously thinking of the customers who use our products. That's all.

Yoshida: I clearly remember you using the analogy, "Kracie could even make cars." I often talk about "destination and vessel." If "destination" is where we're headed and how we want society to be, then "vessel" is what kind of ship we build to get there. Companies that seem off track often fixate on the "vessel" without knowing the "destination."

Company rules, past achievements, and precedents are certainly important to some extent. But when you ask why those rules or precedents exist in the first place, people often struggle to answer. At BDS, we strongly believe that as long as everyone shares the destination, any vessel is acceptable – the form is free.

While "MiX" with external partners is important, "MiX" within the company itself is also crucial, right?

Iwakura: In our company, we operate across closely related industries—daily necessities, pharmaceuticals, and food—yet opportunities for interaction were scarce. That's why we're actively mixing these three businesses. We create opportunities to share know-how, like holding joint meetings for research institute directors and factory managers, and we're gradually seeing this take root. However, I sense that the walls between businesses lower when the company faces crisis but rise again when stability returns.

Yoshida: To break through this situation, Kracie created the "CRAZY Creative Department" – a special unit not tied to any specific business unit, dedicated to cross-functional collaboration. We also aim to work closely with the CRAZY Creative Department to continuously create opportunities for mixing things up.

To continue doing what benefits society, aiming to be a 100-year company

Yoshida: Within this "Let's go out into the world" mindset, what will the contours of Kracie as a company look like, and how will its future unfold?

Iwakura: Why does a company last 100 years? I believe it's because the employees' passion is there. The corporate philosophy is at the very core, and it's precisely because that passion exists that we can provide good things for a long time. When I say "aiming to be a 100-year company," it's because I believe that without such an organizational structure, we cannot continue doing things that benefit society.

Kracie 100 years from now might be engaged in entirely different businesses than today. But it will offer various services and products rooted in our philosophy of "Continuing to Care for People," consistently delivering quality that never disappoints. Ideally, it will be a company where people choose Kracie products when they're unsure.

Yoshida: Daily life will never cease as long as humans exist. Kracie is a company of daily life. As long as the backbone of "continuing to care for people" remains unshaken, it's okay for our outputs to change in various ways. Let's keep CRAZY creating surprising and excellent things going forward.

Dentsu Inc. Business Design Square Website
http://www.dentsu-bds.com/