Supporting the Enhancement of a Company's Fundamental Value: What is the Human Capital Disclosure Diagnostic Tool "Rojinpan"? (Part 2)

As companies pursue sustainable growth and enhanced corporate value, the importance of human capital management is gaining increasing attention. Consequently, corporate HR departments face demands to address various risks and challenges, including recruitment difficulties due to population decline, changes in work styles following the COVID-19 pandemic, and improving employee engagement.

In response to this situation, DENTSU SOKEN INC. developed the human capital disclosure diagnostic tool " Rajinban." Based on the company's accumulated expertise in human capital management consulting services, HR solutions, and branding support, this tool visualizes the current state of human capital management and highlights potential risks, thereby guiding the next steps. In the second part of our interview with DENTSU SOKEN INC.'s Yukio Nakayama and Shungo Higashi, they discuss cases where "Rajinban" proved effective and future service expansion plans.

Effective for talent assessment in SMEs without mandatory disclosure obligations

Q. What types of companies are potential users for the "Human Capital Board"?

Higashi: "Rojinban" is a tool that visualizes human capital management status regardless of company size. Therefore, I believe it can be useful for any company concerned about or interested in human capital management. Listed companies and those expanding globally are already engaged in information disclosure. This service is particularly recommended for unlisted companies and SMEs that are not subject to mandatory disclosure obligations.

Nakayama: The "Human Capital Dashboard" plays a major role in visualization. Its key feature is comprehensively visualizing the current state of human capital management and enabling in-depth exploration of challenges.

For example, in manufacturing, the shift towards service-oriented models—integrating products and services to provide new added value—has accelerated in recent years. However, the skills required for manufacturing differ from those needed for services. Visualizing these differences helps identify gaps, enabling the creation of skill maps and supporting talent management.

Q. What types of companies have you provided "Rojinban" to? Please share the outcomes achieved at client companies.

Higashi: I'll share an example from DENTSU SOKEN BRIGHT INC., a subsidiary of DENTSU SOKEN INC. The company had not previously implemented human capital management, leading to challenges in information utilization and internal initiatives. However, due to its nature as a subsidiary, it was actively engaged in diversity initiatives, including the employment of people with disabilities.

The company's president held a strong conviction and created vibrant workplaces for people with disabilities, such as coffee roasting operations and an in-house cafe. He employed people with disabilities as colleagues working alongside him, and he himself participated as a player in various business operations. However, he seemed to harbor concerns about how the business would sustain and develop when leadership changed.

Amidst this situation, the "Rojinpan" analysis visualized the company's strengths and weaknesses. While challenges existed in areas beyond diversity, we provided insights from a risk management perspective and supported improvements in human capital management, acknowledging these challenges. Furthermore, by listening to the president's vision, we also identified the company's strengths. We believed that leveraging the strengths of the domestic Dentsu Group (Dentsu Japan) would be valuable not only for the top management but also for gathering insights from HR personnel and others, thereby creating the context for a human capital report focused specifically on human capital.

An assessment tool addressing diverse risks

Q. Could you tell us about the future development of "Rojinban"? What service expansions are planned?

Higashi: While "Rojinban" started as a human capital disclosure diagnostic tool, it holds significant potential as an ERM (Enterprise Risk Management) tool that visualizes various risks within a company, not limited to human resources.

In today's rapidly changing internal and external environment, companies must address diverse risks. By changing the assessment criteria, "Rojinban" can also visualize areas like information security, governance, and risk management. For example, in information security, it can analyze the current state according to guidelines like the international standard ISO/IEC 27001, visualize risks and challenges, and provide one-stop support for subsequent actions. We aspire for the "Luo Ren Pan" to serve as a compass, closely aligned with corporate needs, analyzing diverse domains and guiding each company toward its intended destination.

Nakayama: Indeed, since launching "Rojinban," we've received inquiries from various companies. One area is information security assessments. We've also heard requests like, "We want to offer human capital management diagnostic services for SMEs. Can you build a platform specifically for them?" While releasing the "Human Capital Compass" was our first step, our next step is to broaden the assessment areas while adapting to client needs and deepen integration with solutions.

Q. Finally, could you offer advice or a message for companies struggling with human capital management?

Higashi: If you're facing challenges with human capital management, we encourage you to try "Rojinban" first. Amidst society's rapid changes, the essential step is to visualize your company's current state and grasp the management environment. From there, we hope you can steer your company toward the desired direction of change. Please utilize "Rojinban" as that first step.

Nakayama: While many companies are promoting human capital management, it's meaningless for all companies to line up in the same way. The crucial point is how to create a scenario that reflects your company's uniqueness. Most company leaders intuitively understand their organization's risks. The key is using the "Rojinban" to visualize risks that haven't been articulated, and then determining how to develop scenarios. From an investor's perspective, how do you create a compelling "future" scenario? This process requires professional expertise, which is why the Dentsu Group is here to accompany you and provide that support.

While understanding the importance of human capital management, many companies struggle to objectively assess their current state and find their next move. The "Rojinban" not only addresses these challenges but also holds potential to evolve into a broad assessment tool covering areas like information security and governance. As a tool for objectively evaluating a company's position, it seems poised to become a reliable reference point for diverse organizations.