A Productivity Miracle by Makoto Kawada

Discover the Secrets to Building a High-Velocity Organization

In this insightful interview, Canadian Professional Engineer George Trachilis speaks with Alborz, CEO of Abadgaran Group, about their journey to achieving gold for productivity. Alborz reveals 7 key secrets for developing a company that operates at peak efficiency.

The conversation then expands to the work of Dr. Makoto Kawada, Ph.D. in Economics, a leading expert in productivity and economic sustainability. George connects with Dr. Kawada to discuss how organizations can transform from fragmented to lean and agile structures. The core of this transformation lies in velocity – the speed of information and cash flow, not just the movement of materials.

Unlock Your Organization's Potential:

• Velocity-Oriented Productivity: Learn how to accelerate your business through efficient information and cash management.
• Lean & Agile Transformation: Discover strategies to move away from outdated, fractured organizational structures.
• Key Performance Indicators (KPIs): Understand the importance of setting the right indicators to drive stellar performance.
• Post-Corona Era Strategies: Explore how to adapt your business model for success in the evolving global economy.

Navigating Economic Uncertainty:

The Coronavirus shock of 2020 delivered a devastating blow to the global economy, with GDP plummeting in major markets like Japan (-28.1%), the U.S. (-32.9%), and the UK (-59.8%). Rising unemployment rates underscored the severity of the downturn. Experts worldwide are searching for solutions, and Dr. Kawada offers a scientific approach to navigating the "Post Corona Era."

Dr. Makoto Kawada: A Pioneer in Economic Sustainability

Dr. Kawada, Professor Emeritus at Meijo University, Japan, is a visionary in economic sustainable development. He has pioneered the integration of SCCC (Supply Chain Cash Conversion Cycle), BSQ (Balance Sheet Quality), IoT, and Fintech to create new knowledge patterns for the future. His insights have even influenced the Japanese Economic and Trade Ministry.

From Theory of Constraints to the Productivity Miracle

Dr. Kawada’s work builds upon the foundational ideas of management accounting giants like Dr. Goldratt (Theory of Constraints) and the insights shared at the 1988 "NAA conference." He challenged traditional views of the Income Statement as a measure of "flow" and emphasized the importance of the Balance Sheet as a dynamic indicator of enterprise sustainability.

The Rise of Stakeholder Capitalism

The 2020s mark the era of Digital Transformation (DX), enabling real-time updates to the Balance Sheet. Following calls from Klaus Schwab of the World Economic Forum to shift from "shareholder capitalism" to "stakeholder capitalism," the focus is shifting to long-term value creation. The concept of SCCC – prioritizing early payments to suppliers – is becoming a key differentiator for businesses embracing stakeholder capitalism.

The "Eureka!" Moment: Measuring for Success

Achieving a Productivity Miracle requires a paradigm shift in how organizations measure success. The development of SCCC exemplifies this, aligning with velocity-oriented productivity principles (Toyotaism) – a departure from the traditional, inventory-affirmative approach (Fordism).

Beyond Short-Term Profits:

As Nobel Laureate Joseph Stiglitz points out, the focus on short-term profits (PER, ROE) can hinder long-term strategic thinking. Stakeholder Capitalism demands a reinforcement of short-term indicators with sustainability-focused metrics like SCCC and BSQ. Dr. Kawada provides the framework for this crucial evolution.

Learn how to implement Dr. Kawada's methods and achieve lasting business success in the "After Corona Era."