To Win the "Race Against Time" in Decision-Making… We Calculate Profits and Losses Day by Day

Kicking Off “Net Profit Management” to Strengthen Fundamentals
Daily Review of Revenue, Expenses, and Cash Flow
Shifting Oversight from the Finance Team to Operational Departments
Laying the Groundwork for Independent Management by Business Unit
Streamlining Operations Amid External Growth
Clarifying Contractual Relationships with Affiliates
A “Rite of Passage” for Qualitative Leap Forward

All departments of the Minish Group—including tech, hospitals, and dental labs—have launched a “daily profit-and-loss management system” in which they independently calculate their own profits and losses every day. The purpose is to help business units understand their own profit-and-loss structures and formulate business strategies. This marks the full-scale launch of preparatory work to operate each business unit as if it were an “independent legal entity.”

Previously, the task of tracking and reporting profit and loss and cash flow fell to the finance team. Under the old system, expenses were aggregated and reported all at once at the end of the month, making it difficult to scrutinize the specific causes of expenses or identify areas of waste in detail.

However, the situation has changed now that the business units are managing their own profit and loss. Departments are now directly scrutinizing expenses that were previously paid out as a matter of routine and finding their own solutions for how to allocate resources within their given budgets to maximize sales and profitability.

The perspective on shared assets is also changing. While items for conference rooms and the like were previously handled as a lump-sum expense by the Procurement and General Affairs Team, they will now be allocated to each business unit based on usage rates. Purchasing and delivering necessary items is no longer viewed as a simple expenditure on consumables, but rather as “lending assets to departments.”

Labor costs are also set to be phased in gradually. Once labor costs—currently managed centrally by the HR team—are transferred to the business units’ profit and loss statements, even a single new hire will prompt intense deliberation at the department level. Line departments will then have to decide whether it is better to bring the work in-house through hiring or whether it is more advantageous to outsource it as a one-time project.

This “operational efficiency” does not necessarily mean unconditional cost cutting. The key lies in creating a structure that increases net income beyond mere revenue growth by spending costs wisely and maximizing productivity. It can also be viewed as a natural “pivoting” toward a more sophisticated management system as the company grows.

The shift from centralized management to an independent business unit structure streamlines the organization and speeds up decision-making. Relationships with affiliates also become more rigorous. For example, the marketing department responsible for handling marketing services for a dental hospital must periodically provide the hospital with reports of the same quality as those provided by an external agency.

Rather than providing customary support, the goal is to enhance the Marketing Department’s self-sufficiency through competition with external agencies. Conversely, the dental hospitals gain clear ownership. Lee Jun, Executive Director of Business Management, stated, “We expect this to strengthen the competitiveness of each business unit and establish a culture of effective capital utilization and budget planning.” He added, “The ‘Daily Asset Management’ system, introduced alongside this change, will also help establish a culture where employees treat company assets as if they were their own by personally inspecting both fixed and current assets.”