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Results, Execution and Procedure

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  Results, Execution and Procedure

On 11th May 2020, we announced to vote against the board reappointment of Mr. Masayuki Nakayama, the current representative director of Sanyo Shokai, one of our investee companies. Below is the full press release:


While we have described in detail our position in the press release, we would like to add a few words about our view. Our judgment was based on two key criteria, the first was about taking responsibility for the results and procedure leading to said results, and the second was about the set-up that enables the execution for true revival.

It is a fact that the past revival plans were not successful, and if we assume that the plan themselves were well thought through, which we believe so, then the conclusion would be that the execution and procedure was not implemented correctly in order to bring maximum results.

We are raising the point here that deep rooted “culture (air)” may be the cause of such ineffectiveness in execution. The management team is responsible of implementing big picture strategy and then making each business unit understand the goal, encouraging them to achieve the goal effectively, in the principle of “good work rewarded and bad work penalized”.

The result of four straight years of loss, regardless of the market circumstance, indicates that there are serious flaws in the implementation of business operations which can only be explained with the culture that has been generated over the years. We strongly believe that all existing management team members should be responsible for such, based on the “good work rewarded and bad work penalized” principle. How can management expect its employees to work hard to add value when the top management team itself is not demonstrating such a simple principle?
As for the set-up that enables the execution for the true revival, we have mentioned in the press release that it requires legacy-free management, plus flawless execution protocols that eliminates anything that dilutes the “good work rewarded and bad work penalized” principle.

We are raising our voices in the form of a press release this time solely for the future of Sanyo’s business, and to help valuable human capital to maintain their motivation, morale and enthusiasm to grow the business.

Many businesses and individuals are facing devastating moments due to the global spread of COVID-19, and it will bring to the world a structural change to the way we think and behave. We all need to embrace it and take the chance to try some new things that we hesitated to do in the past and to execute them with maximum flexibility to make things happen. We are hoping the same with Sanyo and its management team.

Hibiki Path Advisors Pte. Ltd.
Chief Investment Officer
Yuya Shimizu