Q：Tell us about the role you are expected to play as an outside director of Glory.
Iki：
As an outside director, I provide independent and objective supervision of Glory’s management, and its business execution from a perspective of validity and rationality. I also like to provide effective advice and firm support to business departments when planning and executing Group management strategies. This advice extends to such areas as product development for new markets and business domains, market development, and M&A.
Uchida：
I believe that from the perspective of shareholders and other stakeholders, it is our task as outside directors to promote further vitalization of management and to make statements to ensure fair and appropriate business execution and operation. With the revision of the Corporate Governance Code, there is a growing demand for sustainable corporate growth and medium- to long-term value enhancement. As such, I recognize that our roles and responsibilities as outside directors are becoming more and more important.
Q：What is your assessment of Glory’s current governance structure and what issues does it face?
Iki：
With the enhanced segregation of duties between the Management Conference and the Board of Directors, the latter is now able to focus more on strategic discussions and to supervise the execution of duties. I appreciate the fact that the members are provided with sufficient information in advance of meetings, and that we have engaging discussions to make a variety of proposals.
At the same time, I feel that participants can be more outspoken and willing to challenge each other. I also think that, to further expand Glory’s overseas businesses, there should be more Board members with overseas business backgrounds and the composition of the Board should reflect the focus of Glory’s businesses.
Uchida：
I acknowledge Glory’s efforts to strengthen its governance system by appointing outside external directors and establishing both its Nomination Advisory Committee and its Compensation Advisory Committee well before the Corporate Governance Code was introduced. I would also like to note that there is an open atmosphere at Board meetings that makes it is easier for us to express our opinions, and this leads us to have vigorous discussions. On the other hand, we have challenges in the development of globally-competent human resources and the enhancement of corporate governance and risk management, which are the requisite for Glory to further grow in the overseas market. Transition to a ‘Company with an Audit & Supervisory Committee’ has enabled the Board of Directors to develop strategic discussions on ‘What to do’, considering ‘How to do’ based on operational matters reported and shared in Board meetings. We will continue our discussions with a focus on management strategies and provide guidance as necessary.
Q：What is being discussed at the Board of Directors meetings from a medium to long-term perspective and what issues are being addressed?
Iki：
I believe that the strategies outlined in the 2023 Medium-Term Management Plan have been well-discussed, but the ability and the speed to execute these strategies is in question. As such, the Board is discussing the optimal allocation of management resources to achieve the set targets. With the business environment in a constant state of flux, I feel the challenge lies in how a sense of urgency can be shared not only by top management and certain managers but also among all employees Group-wide to the same degree.
Uchida：
Glory has expanded its business globally via several key milestones, including the acquisition of U.K.-based 'Talaris' in 2012. However, growth has been sluggish lately given the changes seen in the business environment. The 2023 Medium-Term Management Plan promotes the idea of ‘Core and new businesses powering growth together’ for the next phase of future growth. As an outside director, I will keep an eye on how this concept is being incorporated into Glory’s day-to-day operations. Sowing a seed is not enough to pave a way for new businesses, and as such, I would like Glory to cultivate its corporate culture where employees are encouraged to take on challenges and receive recognition for their efforts even if they fail.
Iki：
If we are to develop the next generation of leaders over the medium to long term, it is important to provide this generation of employees with opportunities to see the big picture of Glory’s business from a broader perspective. For example, one should be given an opportunity to carry out a project from start to finish, rather than being partially assigned to set tasks. I have requested Glory to provide us with opportunities to interact with all levels of employees through informal gatherings.
Uchida：
As for human resource development, overseas businesses account for half of the Company’s sales, yet currently only a small number of employees have business experience outside Japan. To become a truly global company, Glory needs to establish a system to enable global exchanges of personnel and job positions.
Iki：
I totally agree. I hope that the Overseas Business Company would spend even more time and resource to effectively capture the state of overseas business including its business environment and customers’ demand, and engage in human resource development of each region, to the same level we do for the Domestic Business Company.
Q：What challenges does Glory face in becoming a leading company that enables a ‘Confident World’?, as outlined in the Long-Term Vision 2028?
Iki：
We will continue our discussions for short/medium/long term goals, set a future vision for each, then encourage employees to think what they need to do in their positions to achieve these goals. It might be helpful to share my story to encourage younger generations to take on new challenges.
Uchida：
It is important for executives and managers to sow a seed to achieve the long-term vision, for example, using roughly 30% of work hours for future-oriented tasks. Mistakes may be made in the process, however, I would like to support Glory in building a positive corporate culture where employees are motivated and encouraged to take on challenges without the fear of failure.
Iki：
As the world changes, Glory will face unexpected changes in business environments, as was the case with the COVID-19 outbreak. Being alert to minor changes is important, but it is equally important to make necessary shifts according to such major changes, and re-set the medium to long-term goals accordingly, just as we did for the performance targets last year during the pandemic. We will also require further discussions in line with the carbon-neutral targets announced by the Japanese government in 2020.
Uchida：
What shapes the future of Glory is our ability to carry out the necessary tasks at hand with the long-term vision in mind. To that end, we are engaged in very fruitful discussions about new business domains such as biometrics and image recognition, as well as measures to expand the customer base. I would encourage Glory to continue taking on new challenges toward the goals set in the long-term vision.
Q：To conclude, what are your expectations of Glory as a company?
Iki：
I would like Glory to provide a work environment where employees are able to do their best to achieve their goals. While all stakeholders are important to Glory, I especially hope that during their careers at Glory, employees will be able to take advantage of the irreplaceable experiences that lay in store.
Uchida：
For Glory to remain valuable and attractive to all stakeholders including shareholders, customers, and employees, it needs to be a ‘good company’ that leverages its uniqueness and individuality to provide products and services that are beneficial to society. I would like Glory to be a company where everyone thinks about what should be done to achieve this.
