Maximizing Corporate Value Realization Speed with Value Velocity Framework
In a rapidly changing and uncertain world, making decisions based on complete information can often lead to missed opportunities and diminished corporate value. To address this, the Earth Technology Group, under the leadership of CEO Naoki Kadokawa, has introduced a new management framework known as ‘Value Velocity’. This framework aims to maximize the speed at which corporate value is recognized and realized, starting from its announcement on January 15, 2026, alongside another strategic management axis called ‘Impact F•CES’.
Today’s business landscape demands agility and adaptability. Delaying decisions in pursuit of complete information might seem prudent, but it can lead to significant opportunity costs. Earth Technology believes that both the nature of decisions made and the time taken to reach these decisions are critical to enhancing corporate value. Hence, they have defined a unique structure and axis for decision-making that aims to improve speed and quality simultaneously.
At the heart of this initiative is the Impact F•CES framework, which serves as a common axis for all management decisions, designed to create sustainable corporate value. It encompasses four critical dimensions:
‘Value Velocity’ measures the speed at which corporate value shifts from a conceptual state to an actionable one. This indicator reflects the time taken for management decisions to be made from identifying challenges. It emphasizes the speed of decision-making at the management level, beyond merely the pace of execution on the ground.
Earth Technology’s strategy focuses on achieving a ‘1% weekly improvement’, recognizing that small, consistent enhancements can yield substantial compounded effects. For example, after one year, this approach could increase decision-making speed by approximately 1.7 times, tripling it in two years, and leading to a tenfold rise in just 4.5 years. By continuously iterating decisions and validations even amid uncertainty, the company aims for rapid realization of corporate value.
To maximize Value Velocity, Earth Technology employs two main strategies:
1. Individual Executive Velocity: This refers to each executive’s ability to maintain decision-making momentum amidst uncertainty, continually updating their judgments through dialogue and validation as professional leaders.
2. Noise-Cancelling Management: A management structure designed to eliminate distractions that could slow down individual executives. By dispelling unnecessary considerations driven by anxiety or reliance on precedents, it enables a more direct route to essential decision-making points.
Naoki Kadokawa, CEO and President, emphasizes, ‘The significance of a corporation is defined through the management axis of Impact F•CES. However, it becomes reality only when decisions are made and transformed into value. We aim to maximize both the capability to define significance and the speed at which it is converted into value, evolving into a robust entity that can withstand global competition.’
Moving forward, Earth Technology Group plans to minimize communication routes within the management team and fundamentally redesign decision-making layers and processes. There will be a concerted effort to instill awareness throughout the organization regarding which value standards (Impact F•CES) should guide what decisions, thereby minimizing confusion over judgments and excessive consensus-building. This will cultivate a framework for generating corporate value at a world-class speed, maximizing the value delivered to stakeholders and contributing to sustained improvements in corporate worth.
The Imperative for Decision-Making Speed: Background to the Initiative
Today’s business landscape demands agility and adaptability. Delaying decisions in pursuit of complete information might seem prudent, but it can lead to significant opportunity costs. Earth Technology believes that both the nature of decisions made and the time taken to reach these decisions are critical to enhancing corporate value. Hence, they have defined a unique structure and axis for decision-making that aims to improve speed and quality simultaneously.
Understanding Impact F•CES
At the heart of this initiative is the Impact F•CES framework, which serves as a common axis for all management decisions, designed to create sustainable corporate value. It encompasses four critical dimensions:
- - Fund: Ensuring sound financial and capital design to sustain human activities within nature.
- - Customer: Providing values essential to human lives and professions.
- - Employee: Fostering growth and pride through work for the workforce.
- - Society: Creating harmony with nature, society, and industry.
What is Value Velocity?
‘Value Velocity’ measures the speed at which corporate value shifts from a conceptual state to an actionable one. This indicator reflects the time taken for management decisions to be made from identifying challenges. It emphasizes the speed of decision-making at the management level, beyond merely the pace of execution on the ground.
Earth Technology’s strategy focuses on achieving a ‘1% weekly improvement’, recognizing that small, consistent enhancements can yield substantial compounded effects. For example, after one year, this approach could increase decision-making speed by approximately 1.7 times, tripling it in two years, and leading to a tenfold rise in just 4.5 years. By continuously iterating decisions and validations even amid uncertainty, the company aims for rapid realization of corporate value.
Supporting Structures for Enhanced Speed
To maximize Value Velocity, Earth Technology employs two main strategies:
1. Individual Executive Velocity: This refers to each executive’s ability to maintain decision-making momentum amidst uncertainty, continually updating their judgments through dialogue and validation as professional leaders.
2. Noise-Cancelling Management: A management structure designed to eliminate distractions that could slow down individual executives. By dispelling unnecessary considerations driven by anxiety or reliance on precedents, it enables a more direct route to essential decision-making points.
Comments from the CEO
Naoki Kadokawa, CEO and President, emphasizes, ‘The significance of a corporation is defined through the management axis of Impact F•CES. However, it becomes reality only when decisions are made and transformed into value. We aim to maximize both the capability to define significance and the speed at which it is converted into value, evolving into a robust entity that can withstand global competition.’
Looking Ahead
Moving forward, Earth Technology Group plans to minimize communication routes within the management team and fundamentally redesign decision-making layers and processes. There will be a concerted effort to instill awareness throughout the organization regarding which value standards (Impact F•CES) should guide what decisions, thereby minimizing confusion over judgments and excessive consensus-building. This will cultivate a framework for generating corporate value at a world-class speed, maximizing the value delivered to stakeholders and contributing to sustained improvements in corporate worth.
Topics Business Technology）
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