Today's report and the accompanying reform plan completely dispelled their concerns.
There would be no massive purge, no one-size-fits-all approach.
Replacing cruel bottom-tier elimination with gentle job transfers and training not only preserved Sega's image as a company that values loyalty and righteousness but also genuinely improved organizational operational efficiency.
"Where will the budget for this allowance come from?" the director in charge of finance asked.
"It will come from the costs saved by eliminating pointless stalling," Takuya Nakayama had already calculated the numbers. "According to the productivity-to-efficiency model provided by McKinsey, after completing this round of personnel optimization, Sega's internal operating costs will decrease by eight percent annually. This money is more than enough to cover all allowance payouts and training expenses. There will even be a surplus."
The math was crystal clear.
Director Suzuki closed the report and leaned back in his chair. "I agree with this plan. I always thought that auditing the accounts would hurt relationships, but now it seems that if you don't squeeze out the pus, the company won't go far. Takuya's strategy here is steady."
Director Yoshikawa followed suit: "The PR department is willing to be the first pilot program. Those old timers who still handwrite press releases every day really need to learn how to use computers. Isn't there already talk of Internet public opinion now? They shouldn't be left behind."
With the support of these two senior members leading the way, the other directors chimed in one after another.
Hayao Nakayama, sitting at the head of the table, had remained silent, listening quietly.
Watching his son expertly command the boardroom, neutralizing what could have been a fiercely resisted personnel reform, the old man felt at ease.
The meeting moved to a vote.
The "Skills Retraining Allowance and Internal Job Rotation Optimization Proposal" was passed unanimously.
The entire board had completely cast aside any lingering resentment from the five months of turmoil.
Before them now stood a clearer, more efficient Sega.
After the meeting concluded, the directors began to file out.
In the hallway, a few directors who were close to each other gathered in small groups to chat.
"I used to think Executive Director Nakayama was just a genius in product development, but I never expected him to be so seasoned in management as well."
"Indeed. I thought he would use the audit as an opportunity to install his own people and engage in factionalism. Instead, he didn't even bother with such petty tricks. He went straight for a systemic solution and even came up with such a refined evaluation system—a brilliant, transparent strategy."
"The old president is getting on in years. With a successor like this, our shares are safe."
These discussions represented a complete shift in the board's sentiment.
Previously, regarding the choice for the next president, some board members had reservations about Takuya Nakayama.
After all, in the Game Development Department, Takuya Nakayama had implemented a modern, American-style R&D management model. He had completely cut out activities like workplace socializing. Although the efficiency of the Game Development Department was obvious to all, in a society like Japan's where everyone is expected to "read the air," he inevitably seemed a bit of an outlier.
Everyone was afraid that he would smash their traditional Japanese corporate culture of interpersonal relationships to pieces.
Now, those opinions weren't as strong.
Although some people remained cautious and critical, the voices of opposition had vanished.
And those who had already approved of Takuya Nakayama were now even more confident.
Takuya Nakayama and Director Hoshino were walking at the back.
"Managing Director, that combination of moves was brilliant," Director Hoshino said in a low voice. "After today, your prestige on the board is firmly established."
"Prestige is built by winning battles, not by holding meetings," Takuya Nakayama said, his pace unhurried. "The reforms still need to be implemented bit by bit; it can't be rushed."
Tokyo in March was biting with the spring chill.
The heating in the Sega headquarters building in Ōta Ward hummed steadily.
Following the board's resolution on internal audits and personnel optimization, the administrative efficiency within Sega had seen a visible improvement.
Approval processes that previously required three to five days of interdepartmental wrangling could now be completed in half a day.
Takuya Nakayama sat behind his large desk, reviewing the financial reports in his hands.
A knock came at the door, and Hisao Oguchi entered, carrying a thick stack of documents.
"Managing Director, this is the preliminary exhibition proposal for this year's E3 in Los Angeles." Oguchi handed over the top document. "The Planning and Development Departments have already held two rounds of meetings and have finalized the core lineup."
Nakayama took the document but didn't open it immediately.
"You've been running to the Development Department quite often lately," Nakayama said, setting the financial report aside.
"To get this lineup sorted out, I have to know their current development progress," Oguchi said, pulling out a chair and sitting down with efficient movements. "You instructed me to familiarize myself more with the specific coordination of the game division."
Nakayama nodded.
Pushing Hisao Oguchi into the position of the game division's chief steward was a predetermined strategy.
Sega's operations were growing, and they needed a deputy with strong execution skills and a holistic view to share the burden of specific operational pressures.
Hisao Oguchi, with his business acumen and execution capabilities, was currently the most suitable candidate.
"Tell me, what cards have you prepared for this year?" Takuya Nakayama opened the project proposal.
"For arcades, our main title is 'Virtua Fighter 3' on the Model 3 board," Hisao Oguchi reported in detail. "Yu Suzuki's team has made significant breakthroughs in polygon count and lighting rendering. The water surface ripple feedback and the physical calculations for character clothing are unmatched by any arcade machine currently on the market. This is the first game on the Model 3 board, and it's our absolute flagship for showing off our muscles."
Takuya Nakayama looked at the test screenshots in the document.
The capabilities of the Model 3 were a "dimension-reduction strike" in current arcades, sufficient to maintain Sega's dominant position in the arcade sector.
"On the console side, the lineup for the Jupiter platform is quite extensive," Hisao Oguchi continued. "In our first-party camp, development of 'Sakura Wars 2' is already more than halfway complete. Prince Hiroi has promised that the script length this time will be 1.5 times that of the predecessor, and the combat system has also been upgraded to 3D."
"So the game version of Ghost in the Shell is out too?" Takuya Nakayama flipped to the next page and saw the content for Ghost in the Shell.
"Nakayama-san is leading the team himself to work on the underlying optimization. Director Mamoru Oshii visited the headquarters twice recently to review the completed cutscene CGs with the development team. He also paid a visit to Kojima-san. Although there were some sounds of arguing coming from Kojima-san's office, when they left, the relationship between Kojima-san and Director Oshii didn't look like they had been fighting at all; they were both all smiles."
Takuya Nakayama chuckled twice.
The chemical reaction sparked by these two getting together was something to look forward to.
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