Fujitsu : Transforming Our Personnel and Organization to Create Value

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Transforming

Our Personnel and Organization to Create Value

The Fujitsu Group is transforming itself. We are stepping up data-driven management, raising productivity through the development of Group employees with the competence both to work in and design environments conducive to digital transformation, and advancing digital transformation based on inclusion, ownership, and innovation "ecosystems."

By encouraging Group employees to take the initiative in pursuing innovation, we will strengthen employee engagement as well as customer relationships. As a result, the organization will grow with a strong focus on Our Purpose and provide new value to customers and society.

HOME Transforming Our Personnel and Organization to Create Value Interview with the Chief Human Resources Officer

Interview with the Chief Human Resources Officer

Fujitsu Group

Integrated Report

30

Q	What is the objective of reforming the Fujitsu
A	Group's human resources strategy?
Our overriding aim is to foster a mindset and
	organizational culture that forge ahead with the
	transformation of the Fujitsu Group's businesses
	and contribute to the realization of Our Purpose.
	Digital transformation will be the growth driver of
	the Fujitsu Group. In other words, we will grow by
	helping customers transform and grow their busi-
	nesses. To build the necessary capabilities, we
	need personnel who can identify issues and think
	and act independently. The development of such
	personnel is the objective of the human resources
	strategy that we are currently pursuing.
	Our previous business model was based on made-
	to-order construction of IT systems for our customers,
	which called for the provision of services in accor-
	dance with given specifications. Although indispens-
	able for the construction of stable systems, I think this
	role put us in a slightly passive position. Therefore, we
	believe that our human resources strategy must
Q	change to reflect the Group's future business model.
What specific measures are you taking to encour-
A	age employees to think and act independently?
In 2020, we launched a series of measures aimed at
	realizing new workstyles and reforming organiza-
	tional and human resources management, which we

referred to as our "Work Life Shift" initiative. In particular, the expansion of our internal job posting

system and the introduction of job-based human resources management to underpin the system have emerged as important factors in encouraging employees to independently add to their skill sets and take on new challenges.

The introduction of job-based human resources management means a shift from the conventional approach of membership-based human resources management-in which the emphasis is on how to utilize the talent currently available-to a strategic approach to talent and organizational design in which the focus is on the type of human resources needed to execute business strategies.

Expanding and enhancing the internal job posting system has also markedly changed the relationship between the Group and its employees. Employees have far more opportunities to take the initiative in searching for and selecting positions advertised in-house, acquiring new skills as needed, and pursuing ambitious goals. Rather than management unilaterally deciding on the training and assignment of employees, the employees can now learn and build their careers proactively.

Internal job posting system	P32
Job-based human resources management	P32

"The introduction of job-based

human resources management means

a shift to an approach focused on talent and organizational design."

Hiroki Hiramatsu

CHRO

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Transforming Our Personnel and Organization to Create Value

Interview with the Chief Human Resources Officer

Fujitsu Group

Integrated Report

31

Q

A

How have employees reacted to the major changes in the human resources system?

The reaction has been more positive than expected. For example, more than 1,350 employees from across the Fujitsu Group responded to a recruitment drive for new managers in October 2020, and approximately 750 of the applicants received promotions to managerial positions. In addition, as of June 2021, nearly 2,900 employees had applied for open in- house positions, with more than 750 employees assuming new positions as a consequence.

In total, at least 1,500 personnel have transferred, demonstrating that employees have taken the management's seriousness about change on board. Moreover, those who have not yet applied for the advertised positions have expressed an interest in taking up the challenge in the future and developing their skills to this end. Overseas, Group company employees have asked for more information so that they can pursue their ambitions by applying for in-house positions. Through "Fujitsu VOICE" , a program for collecting employee feedback, we are able to receive employees' frank evaluations of measures in a timely manner and utilize the information to improve the systems that we have introduced.

The internal recruitment system is invigorating not only individual employees but the organization as a whole. To attract talent through the system, divisions must make themselves more appealing. Naturally, the engagement of existing division members will

also come under scrutiny. If managers want to attract personnel or retain existing personnel, they have to create environments where employees can take on challenges. To encourage the creation of such environments, one-on-one dialogues between managers and their subordinates are held Group- wide. Also, we are creating systems to ensure high- quality communication even when the participants are in different locations.

"Fujitsu VOICE"

P36

Q	As well as the personnel assignment system, you
	have changed the personnel evaluation system.
A	How exactly has it changed?
We have emphasized linking personnel evaluation
	and Our Purpose. Creating an organization that is
	strongly focused on Our Purpose cannot be accom-
	plished simply by the senior management team
	taking the lead in setting a direction for the Group.
	We believe the establishment of a vision that both
	managers and personnel from each division and
	Group company can relate to and endeavor to
	realize is also necessary. With this in mind, we have
	introduced a system that evaluates employees'
	contribution to the realization of our vision.
	Specifically, for senior officers worldwide, we have
	adopted a common "balanced scorecard"* to evalu-
	ate beneficial impact on Our Purpose, the tackling of

transformation tasks, contribution to financial and non-financial indicators, initiatives under the Global Responsible Business (GRB) platform, and performance in relation to indicators. For the management rank below senior officers, targets are broken down into numerical values, and beneficial impacts rather than the degrees of achievement are evaluated.

• The balanced scorecard is a strategy and business performance evaluation framework utilizing a well-balanced combination of management indicators that have an important bearing on the realization of a vision or strategy.

Q	The Fujitsu Group is promoting diversity, inclusion,
	and wellbeing under the GRB	platform. What is
	the relationship between this platform and the
A	Work Life Shift initiative?
Since the Work Life Shift initiative contributes to
	employee wellbeing and promotes diversity and
	inclusion within the Group, we are of course seeking
	synergies between this initiative and the GRB plat-
	form. The platform represents the Fujitsu Group's
	commitment as a global company and forms the
	basis of business management. Meanwhile, as Work
	Life Shift is part of efforts by the Group to trans-
	form itself, the initiative occupies a different position
	and is linked to business strategies. However, the
	common goal of the initiative and platform is to
	realize Our Purpose.
GRB			P44-45,49-50

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Transforming Our Personnel and Organization to Create Value

Progress in Human Resources and Organizational Transformation

Fujitsu Group

Integrated Report

32

Progress in Human Resources and Organizational Transformation

Work Life Shift

In 2020, the Fujitsu Group launched its Work Life Shift initiative, which aims to realize employee wellbeing in the "new normal" era by transitioning from a focus solely on work to a view of work and lifestyle as part of an integrated whole. We are promoting this initiative based on three key approaches. The first one, "Smart Working," enables employees to choose flexible workstyles fitted to particular types of work, objectives, or lifestyles. The second approach, which we call "Borderless Office," encourages location-flexible workstyles and the development of comfortable office environments that are conducive to creativity. The third one, "Culture Change," will transform our corporate culture through human resources management based on high degrees of employee autonomy and mutual trust.

Introduction of Job-based Human Resources System

Among the three approaches mentioned above, the "Culture Change" approach seeks to align Fujitsu's human resources strategy and organizational design with its business strategy and also to innovate the current human resources system to promote a diversification of career options. The driver of "Culture Change" is a job-based human resources system that assigns the right people to the right jobs. To achieve such a system, it is important to determine clear job descriptions in terms of responsibilities, skills, and activities based on globally unified standards and rankings. Fujitsu introduced a job-based human resources system for managers in Japan in 2020, and plans to establish a common Groupwide global system by applying this system to all Group employees.

Expansion of the Internal Job Posting System

In 2020, Fujitsu launched an internal job posting system by expanding the existing in-house recruitment system. Within the system, any Group employee can apply via a Groupwide in- tranet site for vacant in-house positions. The system encourages employees who want to seek new challenges in a new work environment by providing valuable information on positions and results of employee engagement surveys for each division on the intranet. The system is encouraging healthy competition of talent among the Fujitsu Group, with some divisions adding videos or presentation slides to their job offerings to give overviews of their divisions and illustrate the rewards and growth opportunities that they offer. The internal job posting system has revitalized the entire Fujitsu Group as the increase in transfers and personnel mobility is strengthening cross-divisional exchanges, which in turn generates collaboration among different business divisions.

Employee engagement

P35

Better Communication through One-on-One Dialogues

Fujitsu employs Groupwide one-on-one meetings between managers and their subordinates in order to encourage in-house communication. We realize how important it is for employees to be able to consult with their superiors about growth opportunities and future careers, receive appropriate advice, and gain an understanding of the mission of their division and the role they are expected to play over the medium and long term in order to realize their full potential. In addition, these dialogues have a highly positive impact on employee engagement and on the clarification of Fujitsu's Purpose as they give the supervisors and their subordinates the opportunity to take a step back from their daily reporting and consultation routine in order to discuss and clarify common visions.

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Progress in Human Resources and Organizational Transformation

Fujitsu Group

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Support for Self-Motivated Learning

Fujitsu has not only introduced a new human resources system, but has also replaced its traditional rank-based training system with a system that encourages employees' to take charge of their own learning and growth throughout their careers. The Fujitsu Learning Experience, an on-demand platform in cooperation with Udemy, one of the world's largest online video learning platforms, offers employees a lineup of approximately 8,800 courses-accessible at any time and any place. Using this new platform, employees can register for their aspired positions and then receive recommendations on suitable e-learning courses. In this way, employees can acquire necessary skills and knowledge in order to prepare for challenging, new positions. The platform also provides content that aims to inspire employees' ambitions like "Edge Talk," where experts from inside and outside the Fujitsu Group talk about learning and their experiences.

Strengthening Human Resources to Lead Digital Transformation

As part of the digital transformation project "Fujitra," we are training all 130,000 Group employees with the skills and knowledge required to be a driver of digital transformation. Fujitsu has defined common skills and knowledge in three areas as "digital transformation (DX) literacy": "Agile Methodology," "Data Sciences," and "Design Thinking." Based on this system, Fujitsu is developing training courses where employees can acquire the necessary practical skills to nurture human resources able to drive digital transformation. By focusing on these three areas-"Agile Methodology," used for the development of systems and software, "Data Sciences," related to digital technologies, and "Design Thinking," an approach used by designers to develop new services and create innovation-we aim to expand our business in order to create new value and realize Our Purpose.

Nurturing of Business Producers

The Fujitsu Group aims to create value in the two business domains "For Growth" and "For Stabil- ity." To this end, Fujitsu has revised conventional practices where sales personnel were assigned to specific industries and accounts in our domestic business and redefined the staff's role as "business producers" who will be leaders to provide new value to our customers. Currently, we are promoting the reskilling and education of business producers so that they can fulfill their role and create value in future markets.

The goal of reskilling is to acquire techniques necessary to drive digital transformation to become a leader in the "value creation process," which we have defined in the form of model activities for business producers. Introductory courses include lectures on market analysis, how to prepare digital transformation concepts, and design thinking. Trainees then acquire practical skills by participating in customers' digital transformation projects. After finishing both the introductory training course and the practical skills phase, participants are evaluated based on their practical skills to drive the "value creation process" as well as their knowledge and understanding of their own role as business producers.

According to a survey, 97.0% of the reskilled personnel understood the need for and endorsed the change in their roles, and graduates of the course are enthusiastically using the skills they have acquired to address social issues and contribute to customers' digital transformation projects. In addition, as some system engineers have expressed their wish to participate in this training, we are considering to offer the course to a wider range of employees.