Building an Organization That Encourages Personal Growth and Empowering Talent for the Future of Healthcare
- Ryuichi Hirashima
- Senior Executive Corporate Officer,
Chief Administrative Officer (CAO),
Chief Human Resources Officer (CHRO),
Chief Transformation Officer (CTO),
PHC Holdings Corporation
1. Human Capital Strategy: A Growth Strategy Aligning Management and HR
Based on the new vision and values, we will synchronize business and HR strategies to promote initiatives that enhance corporate value.
The growth of every employee is vital for the growth of PHC Group. With our Value Creation Plan (VCP) 2027 and newly defined Vision and Values as our foundation, PHC Group is aligning our human resource (HR) strategy with our management strategy. By leveraging the synergy between these two strategies, we seek to achieve our business objectives, enhance employee engagement, and increase our corporate value. As part of the VCP, our HR strategy focuses on fostering an environment that unlocks the full potential of our employees’ many talents.
2. Specific Initiatives Driving Our Human Resources Strategy
As part of our HR strategy, PHC Group is committed to driving sustainable growth through a focus on improving employee engagement. The primary objective of this strategy is to create a workplace where employees can harness their unique strengths and perform at their best. To accomplish this, we have prioritized three key initiatives: 1) Developing opportunities for employees to enhance their skills and capabilities; 2) Advancing HR digital transformation (HRDX) to optimize HR operations; and 3) Inspiring a stronger sense of connection to PHC Group and our future success. Through these HR initiatives, we are striving to achieve further growth.
Opportunities for Development
PHC Group focuses on nurturing the next generation of leaders who will shape the future of our company, while fostering a corporate culture where all employees proactively engage in continuous learning. This dual approach—supporting both personal growth and organizational development—aims to strengthen our company’s capabilities and enable every employee to feel fulfilled and empowered.
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PHC Academy: Developing Next-Generation Leaders
PHC Academy, launched in 2024, is dedicated to developing current employees into leaders who will take on key management roles within PHC Group. This initiative offers comprehensive training programs across two tiers: “Potential Successor Candidates” for senior management and “Next Generation” for future leaders. In the first class of participants, 20 nominees from around the world embarked on a year-and-a-half journey of continuous executive development opportunities designed to promote sustainable organizational management. Designed to align with the VCP and new Vision and Values, the program not only helps participants acquire knowledge but also develop their leadership mindset and capacity to drive transformation, while creating a peer network of leaders across PHC Group.
This summer, PHC Academy participants visited OMRON Corporation to receive a lecture on that company’s management philosophy from Mr. Kiichiro Miyata, OMRON's Representative Director, Executive Vice President, and CTO. Additionally, the group heard a presentation from Ms. Ayumi Okada, President and CEO of OMRON Healthcare Co., Ltd., on the journey and future vision of the company.
This initiative seeks to go beyond internal discussions, engaging in proactive learning from peer companies on topics including embedding corporate vision, launching new businesses, and developing growth strategies. In addition to traditional MBA-style courses that support critical and analytical thinking, the curriculum emphasizes liberal arts subjects, including art, culture, and history, to inspire creativity and insight. Through lectures by external experts such as consultant Shu Yamaguchi, participants are encouraged to deepen their understanding of many fields, sharpening their wisdom and vision as future business leaders.
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Group-wide Training: Building an Organization Committed to Continuous Learning
At PHC Group, our group-wide training program ensures that all employees, regardless of level or location, have opportunities to enhance their skills. Building a corporate culture where employees take initiative to learn beyond their current roles and acquire new skills is vital for driving future growth. Fostering a culture of autonomous learning and personal growth helps our organization to grow stronger and more resilient.
Specific initiatives include “Leadership Training” for managers and leaders across PHC Group. In this training, employees learn to improve their management skills, coach team members, conduct evaluations, and understand labor affairs to ensure they can apply these skills in practice. Additionally, a unified global HR platform helps to provide employees with essential knowledge and skills, while an external learning platform enables self-paced, personalized learning tailored to individual needs.
Advancing HR Digital Transformation to Ensure Equal Opportunities
PHC Group is committed to a corporate culture that provides fair opportunities for all employees. Our global HR system allows us to consolidate and manage information on employee skills and work experiences. This system includes a database of employee-provided information, which we refer to along with other performance data when making decisions on transfers, placements, and promotions. It helps ensure that personnel decisions are backed by diverse data sources. This global HR system is one way that PHC Group strengthens our culture of equitable HR practices and respect for individual contributions.
In our HRDX initiatives, we focus on leveraging technology for practical results. For example, we conduct online employee engagement surveys throughout the year, and data about responses and trends are managed centrally. Practical online training programs empower employees to use digital systems for their career development. Improving usability and functionality remains a key priority to ensure that all employees can access and benefit from the system.
Improvement of Employee Engagement
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Creating Conditions for Job Satisfaction
Creating a workplace where employees feel secure and motivated to take on challenges is a key priority for PHC Group. We are committed to fostering an environment where employees feel safe sharing ideas and challenges with their peers, teams, and leaders. One way we support this culture of sharing is by creating opportunities for direct communication between employees and leadership.
Our PHC Group President/CEO Kyoko Deguchi regularly engages with employees around the world through monthly town hall meetings and more than 50 in-person roundtable discussion sessions annually. Employees have expressed appreciation for these opportunities to have direct conversations with the CEO, saying, “It was very beneficial to talk directly with the CEO and hear her thoughts in person,” and “I felt glad to be encouraged directly by the CEO,” highlighting the value of open, direct dialogue.
The results of the 2024 Engagement Survey revealed that employees have found it challenging to feel a sense of personal growth over the past few years. This was influenced, in part, by circumstances such as the temporary stagnation of our business performance and delays in the release of new products. Since the growth of the company and individual growth are often seen as interconnected, this has naturally affected employee engagement. However, the most recent Engagement Survey showed an improvement in scores, highlighting how the recovery in business performance has significantly contributed to enhancing employees’ sense of security and engagement. Achieving tangible business results not only helps to alleviate employees’ concerns but also fosters an environment where they can approach their work with greater confidence. We firmly believe that by continuously strengthening our business, we can further enhance employee engagement and drive the growth of both individuals and the organization as a whole.
At the PHC Group Hibiya Office in Tokyo, which houses the corporate functions of PHC Holdings Corporation and some of PHC Corporation, we are focused on initiatives to improve employee engagement and collaboration. Through simple policies like not assigning desks, employees naturally interact more with colleagues from other departments, fostering casual communication in a shared space. Since moving to this office in April 2024, collaboration across departments has significantly improved. We prioritized building a physical workspace that encourages collaboration while also facilitating pause and reflection, where even the beautiful view of Hibiya Park in Tokyo can spark inspiration.
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Advancing the Disclosure of Non-Financial HR Information
As a company listed on the Prime Market of the Tokyo Stock Exchange (TSE), PHC Group is committed to fulfilling the TSE’s call for enhanced disclosure practices. While financial information has traditionally been the focus, there is increasing demand from the TSE, shareholders, and investors for greater transparency in non-financial information. This Integrated Report exemplifies that trend, and PHC Group places particular importance on disclosing non-financial organizational insights, including HR initiatives to build company culture. These efforts reflect our commitment to greater transparency and accountability about our overall business practices.
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Driving Both Unity and Respect for Diversity as “One PHC”
Under the leadership of President/CEO Kyoko Deguchi, the “One PHC” mindset has guided our efforts to enhance group-wide unity. This concept reminds all PHC Group employees that no matter where we live or which company we are part of, we all belong to a global team with a shared mission and common goals. Supporting this mindset by building open, collaborative work relationships is an expectation that starts with our senior leaders.
Initiatives such as PHC Academy are an example of this unity. For example, in December 2024, academy participants from each business unit gathered in Australia—away from our primary business hubs like Japan, the United States, and Switzerland—for lively discussions with colleagues with whom they rarely interact. Many participants found these exchanges with team members from diverse backgrounds highly beneficial, and the initiative significantly contributed to fostering the “One PHC” mindset.
At the same time, we appreciate that regional, cultural, and individual diversity adds value to all levels of our business. Consequently, our view is not to be overly concerned with standardizing all aspects of HR management for every business, but to offer opportunities for employees to share both what unites them and makes them unique.
The journey of becoming “One PHC” begins with managers deeply understanding the concept and collaborating with each other. As this mindset takes root, I believe it lays the foundation for a unified, cohesive, and stronger PHC Group.
3. Future Outlook
Building a Corporate Culture of Individual Respect and Equal Opportunities
Over the years, our group has expanded its business through multiple acquisitions. Throughout this process, we have fostered a corporate culture that prioritizes respect for individuals and equal opportunities, regardless of whether employees come from the acquiring or acquired side of the business.
Regardless of their origins—whether from Matsushita Kotobuki Electronics, the foundation of our company, or from acquired businesses talented and motivated individuals have taken on leadership roles across our group. For example, the head of the Ascensia business, acquired from Bayer AG in Germany, was previously appointed as our CEO.
This example clearly demonstrates our belief that opportunities for growth are open to everyone, regardless of their company of origin, nationality, age, or gender, as long as they possess ability and drive. While not every employee aspires to become CEO, we take great pride in cultivating an environment where no one is limited, and every individual can maximize their potential.
A Culture of Co-Creation Fostered by Independence
Our decision to carve out from the Panasonic Group in 2014 and establish ourselves as an independent healthcare-focused company was rooted in our own vision for growth. In the healthcare industry, where markets are often highly specialized and segmented, achieving stable revenue through domestic operations alone can be challenging. This has driven both Japanese and international companies to prioritize global business expansion as a key strategy for long-term success.
For our company, thriving globally means fostering a culture that values diversity, collaboration, and adaptability. We are committed to breaking down silos and encouraging employees to work across departments and regions, leveraging their unique perspectives to co-create solutions. By actively engaging with colleagues, supporting one another, and sharing insights, we believe we can maximize organizational performance and maintain a competitive edge. As a group that has grown through M&A, we also recognize the importance of staying attuned to industry trends and evolving to meet global market demands. We believe that maintaining a broad perspective and evolving as an organization capable of adapting to change are essential to thriving as a global company.
Advancing Equal Opportunities
At PHC Group, we seek to create a society where individuals can fully realize their potential regardless of gender. In our global ESG strategy, we have defined specific KPIs for key social topics including gender diversity and are committed to reporting on our progress with transparency. Increasing the representation of female managers is recognized as a key management priority. Currently, the average percentage of female managers across PHC Group is near 20%, with the intention to raise this figure to approximately 30% in the future.
Globally, some PHC Group companies outside Japan have already achieved a percentage of female managers of around 40%, with women representing nearly half of management roles. However, achieving this target across PHC Group remains a priority.
We believe that an ideal society is one in which people can maximize their capabilities regardless of gender.
We recognize that a variety of perspectives are essential in our business operations, from product development to customer service.
Looking Ahead
The growth of each employee fuels the growth of our entire company, and investing in human resources is essential to organizational growth. PHC Group is dedicated to cultivating a corporate culture where employees at any level or in any field can take on new challenges and unlock their true potential. By creating an environment of mutual respect, support, and collaborative growth, PHC Group aims to provide workplaces where employees feel proud of their work and thrive with energy and purpose.
Guided by our unwavering mission statement—“We contribute to the health of society through our diligent efforts to create healthcare solutions that have a positive impact and improve the lives of people”—we will continue to take on challenges and strive for progress in precision technology for healthcare. We look forward to building a healthier society together.
4. Striving to Be a Group of Company That Inspires Employee Growth and Pride
Enhancing Talent and Organizational Capabilities to Drive Sustainable Growth
My vision for our company is to be a group of companies where employees are not only competitive professionals who can excel anywhere, but also individuals who choose to work with us because they find pride and purpose in what they do. I seek to create an environment where talented individuals, capable of thriving in any organization, feel a strong sense of fulfillment and motivation to continue contributing to PHC Group.
To achieve this, we aim to create an environment where employees are encouraged to embrace meaningful challenges and put in effort, while also incorporating “science into HR” to ensure their hard work translates into tangible results and a strong sense of accomplishment. We are confident that by fostering a workplace where a supportive work environment and a sense of purpose coexist, we can enhance employee engagement and ultimately improve the overall performance of our group.
Final Thoughts
We envision PHC Group as a company where every employee feels proud to be part of the team—a workplace filled with curiosity and courage, where employees look forward to each new day with anticipation. We also aspire for PHC Group to be known as a fair, transparent, and ethical organization that employees are proud to share with their families and friends.
Creating an environment where employees can experience personal growth is a top priority for us. From the moment they join, employees are encouraged to take on unfamiliar tasks, overcome obstacles, and develop new skills that expand their potential along the way. Our ultimate goal is to align personal growth with PHC Group’s growth, creating a mutually supportive and beneficial relationship. We strongly believe that when employees see their own potential for growth, their motivation and contributions grow in parallel, propelling the organization toward greater success and a brighter future.
