Can Large Corporations Truly Change? Companies Consider the Meaning of Standing Between People and Society

Innovation.
It's no exaggeration to say this word permeates every industry and organization today—there's scarcely a day we don't hear it.

Yet, looking at the current state of affairs, many people sense an atmosphere that says "you mustn't try new things" or "you can't create innovation." To resist this daily frustration and bring innovation to their organizations, "volunteer groups" formed primarily by young employees are active within various companies.

Amidst this, the practical community " ONE JAPAN " was launched in 2016. It brings together 50 corporate volunteer groups, primarily composed of young and mid-career employees from large corporations, united under the motto: "Quit, Conform, or Change."

Dentsu Inc.'s 'Dentsu Youth Research Department (Wakamon)' joined as a member. Together with like-minded young employees from other large corporations, we engage in various activities aimed at realizing the vision ONE JAPAN champions: "transformation and innovation in large corporations led by young and mid-career employees."

I'm Yoshida, a member of Dentsu Inc. WAKAMON, and I'm joining ONE JAPAN a bit late. Drawing on my research findings and my activities as a member of Dentsu Business Design Square (my other role), I'm working on corporate transformation projects to improve the relationship between younger and older generations.

Now, back to ONE JAPAN.
The perspective of frontline employees from member corporations and Dentsu Inc.'s perspective, gained from accompanying corporate transformations. By resetting the "client-agency" relationship and blending these two viewpoints, we hypothesize we can reveal new "possibilities for large corporations." Based on this hypothesis, we present a serialized discussion titled "ONE JAPAN in DENTSU: Quit, Conform, or Change."

This installment's theme is "Can Large Corporations Truly Change?"
First, we welcome Masahiro Yamamoto, Co-Representative of ONE JAPAN, to revisit the event held at Dentsu Inc. in October 2019 on this very theme.

 

From a buyer-seller relationship to a co-creation relationship where open discussion flourishes

After the event, we heard Mr. Yamamoto's reflections.

"Until now, we've focused on leveraging the strengths unique to a volunteer-based organization. But this event reaffirmed for me the arrival of an era where individuals can connect directly with companies, organizations, and like-minded people outside their own company.

The relationship between 'client and advertising agency' or 'the commissioning party and the service provider' also benefits from incorporating a third-party perspective beyond just the parties involved. What is currently required of large Japanese corporations is 'co-creation relationships that transcend positions' and the resulting promotion of innovation. I believe it is extremely meaningful for open discussions to emerge across corporate boundaries in such forums."

In the era of "direct connection," companies gain value by becoming "providers of opportunities."

As someone who advocates "relationship design" and works on various projects daily, I felt the keyword this time was "direct connection."

Technological advances have created a society where direct connections are increasingly common across all scenarios—such as individuals connecting directly with society without corporate intermediaries, or companies connecting directly with media and creators without agencies. How can individuals and companies adapt in this environment?

For individuals, the key will be to actively increase their "opportunities for direct connection with society" and personally experience this direct engagement. As symbolized by the SDGs, momentum is building to fundamentally rethink "how companies connect with society." In this climate, individuals who only connect with society through companies face high risk in two ways.

One concern is that if they cannot propose new ways of connecting with society that companies haven't yet recognized, their value as talent may decline going forward. Furthermore, if the company they belong to has misaligned its approach to connecting with society, there is also the possibility that they themselves could mistakenly misalign their own connection with society, leading to a mutual downfall.

How do I want to exist in this society? What do I want to achieve?

Maintaining this perspective will be the deciding factor in whether you can become a "valuable individual who can propose new ways of connecting with society" to companies exploring their own connections.

From a company's perspective, even in an era where "individuals can connect directly with society," the key point is creating "value that justifies the company's intermediary role between the individual and society."

Currently, the larger the organization, the more its negative aspects—being "slow," "cumbersome," or "politically challenging"—tend to stand out. This is because, in many cases, organizational structures inherited from an era where direct connections weren't the norm are still in place.

In an era of heightened uncertainty where the future is unpredictable, more people are questioning whether belonging to a company is necessarily the right choice. Consequently, the value companies hold for individuals should shift from being a "safety net reducing life's risks" to becoming a "batter's box that expands life's fulfillment and opportunities."

Simply put, it boils down to "whether being there is interesting." How much can the large corporate batters' box produce work that individuals can truly call their life's work? As Dentsu Inc., which partners with companies, we also want to explore together what form large corporations should take to fit the times.