Non-Financial Indicators
Approach
To ensure a stable, long-term contribution to the realization of Our Purpose, it is essential to build trusted relationships with all stakeholders and to pursue sustainable growth. We have therefore incorporated non-financial indicators as part of our core business activities, and we are promoting initiatives to achieve them in tandem with our financial targets. Based on this approach, and to measure the progress of in-house reforms, the Fujitsu Group has established three non-financial indicators: the Net Promoter ScoreSM (NPS®) (*1) represents trust from customers; Employee Engagement indicates the relationship between the company and its employees; and the DX Promotion Indices highlight the advances made in the Fujitsu Group's own digital transformation initiatives.
- （*1）Net Promoter, Net Promoter Score, and NPS are trademarks of NICE Satmetrix, Inc., Bain & Company, Inc. and Fred Reichheld.
Net Promoter ScoreSM (NPS®)
NPS® is an indicator that enables objective evaluation of the relationship of trust with customers, or customer loyalty. Unlike customer satisfaction, which indicates the degree of satisfaction or dissatisfaction with a purchased product or service, customer loyalty is characterized by the ability to determine the degree of customer attachment and the likelihood of repeat purchases. The Fujitsu Group employs customer NPS® as one of its non-financial indicators with the aim of realizing customer-centric management. By listening to our customers' views via NPS® and offering services that appropriately suit their requirements, or by making proposals that anticipate their future needs, the value of the customer experience will be enhanced and our customer NPS® will rise further. We believe that creating such a positive cycle will result in a boost to the corporate value of the Fujitsu Group.
Net Promoter ScoreSM (NPS®)
In setting our new NPS® target, we took the approach of carefully examining each of the approximately 2,000 responses we received from customers in our global survey. We then determined how many points of improvement could be achieved through the various actions we decided to take this fiscal year and collated the results. Guided by the reference value of 2.3 points of improvement achieved in FY2021, calculated using the same approach, we set a target of 3.7 points of improvement for FY2022 over the previous fiscal year.
As a structure for promoting improved results, at the working level we have appointed customer experience leaders in each region to take the lead in relation to improvement activities. On the management side, meetings of the CX Steering Board are convened every quarter, headed by the CEO and attended by those responsible for Fujitsu’s business operations in all regions. This system ensures that customer issues are reliably resolved at the working level while simultaneously addressing them as management issues. The implementation of a "feedback loop" allows those involved to propose improvement actions, examine areas for investment, and verify the effectiveness of measures already taken.
Employee Engagement
The Fujitsu Group's greatest management resource is its employees, who are the source of the value provided to customers. Our experience suggests that highly engaged employees are better able to provide high-quality services to our customers, and that positive customer feedback correlates to an increase in employees' responsiveness to their work. We believe that improving the engagement of each employee leads to the growth of both the individual and the Fujitsu Group.
Based on this concept, to measure the sustainable growth of the Fujitsu Group we established Employee Engagement as a non-financial indicator that shows the mindset of employees and their empathy with the organizational culture. Employee Engagement can also be considered an indicator that illustrates the Fujitsu Group has the necessary human resources and other capabilities, including organizational culture, to gain the trust of customers as a DX partner.
FY2019
(results)
FY2020
(results)
FY2021
(results)
FY2022
(target)
The target Employee Engagement value of 75 for FY2022 is a figure that has been determined by benchmarking against global corporations. The actual scores can vary greatly across the Group, because they are impacted by the relevant company's business area, the business environments in different countries and regions, and the diversity of our employees’ countries of origin. While it is true that 75 is an ambitious target for the Fujitsu Group, we are nonetheless striving to achieve this goal with the aim of being on par with other global enterprises.
Fujitsu has put in place a structure for global collaboration across all regions to boost engagement. This includes the Center of Excellence, a specialist team dedicated to creating highly engaged organizations, and Human Resource Business Partners, a team of strategic HR partners who are active in every work location. As a specific initiative, we have introduced measures to broaden employees' workstyle options, after clarifying their individual purpose. This includes a semiannual survey conducted on a global basis to measure employee engagement. The objective is to gauge in a timely manner changes in organizational culture, employee workstyles, opinions, and awareness, and to swiftly reflect the outcomes back to management.
The results of the surveys are disclosed on the intranet, where they can be viewed by all Group employees. The results for individual departments are also shown and are used when making changes to enhance day-to-day management and engagement at each work location. Departmental results are also used as a source of information for employees keen to embrace the challenge of a new environment through the job assignment system. Analysis of the survey information revealed a strong correlation between one-to-one meetings and employee engagement. This highlights the vital importance of managers and staff meeting to discuss and clarify a shared vision, unrelated to routine task reporting and discussions, from both the perspectives of employee engagement and of creating a purpose-driven organization. Non-financial indicators are very effective, and we believe it would be even better if we could incorporate employee engagement data and publish a reference model in the future, based on data analysis, with the aim of improving each of the non-financial indicators.
DX Promotion Indices
To capture the changes that the Fujitsu Group is undergoing on the path to achieving its Purpose, we have specified DX Promotion Indices (*2) as one of the non-financial indicators, and we are conducting a maturity diagnosis on our digital transformation (DX) initiatives in a common format across all Group companies globally. By conducting detailed diagnoses for each department, we can gauge the progress of our DX efforts and the outcomes of measures so that they can be linked to future actions. Another objective in specifying these metrics is to accumulate knowledge that can be leveraged when working as a partner on DX projects with customers. By implementing initiatives in line with the DX Promotion Indices and by enhancing the level of DX maturity, we believe the Fujitsu Group can relay to customers through its business activities the insights gained in the process.
- (*2)Evaluation indicators for digital management reform on a six-point maturity scale, ranging from 0 to 5. There are seven items relating to "Indices for ideal approaches to management for promoting DX and systems therefor " and two items relating to “Indices for development of IT systems as a foundation in achieving DX”.
DX Promotion Indices
Fujitsu has set a numerical target of 3.5 for the DX Promotion Indices in FY2022. According to the Japanese Ministry of Economy, Trade and Industry's DX Promotion Index, companies scoring an average of 3 or more across all qualitative indicators are classified as being a “Noteworthy DX Company”. We consider this to be a recognition of Japan's top DX enterprises and the fact that they have also reached a leading position at a global level.
The DX Promotion Indices are specified on the assumption that each company conducts self-diagnosis. To ensure objectivity in the self-diagnoses undertaken at the end of each fiscal year, as a basis for scoring the Fujitsu Group uses input from all employees (gathered in Group-wide semiannual surveys on opinions regarding change) and incorporates a third-party evaluation by Ridgelinez Limited. The feedback is shared with executives, department heads, and DX leaders across all departments as part of the Group-wide DX project "Fujitra” (Fujitsu Transformation). The objective is to gauge the progress of the Group overall, as well as in each department, and to use the information when making decisions on the next measures to be taken and on any necessary adjustments to the trajectory of the project.
In terms of enhancing the results for these indices, we view the following three areas of internal reforms as being key to ensuring continued improvement in the future: mindset and corporate culture; human resource development and retention; and incorporation into the business. For the first area of mindset and corporate culture, the critical point is to ensure the effective functioning of measures such as the job-based personnel system and the Fujitsu Innovation Circuit, a business creation program. Regarding HR development and retention, it is essential to firmly establish and activate HR development measures, such as training programs for reskilling and our exPractice DX talent development program, as well as staff mobility measures, such as the job assignment system. Finally, the area of incorporating into the business primarily involves the acceleration of measures such as Fujitsu Uvance, service delivery reform, and business process transformation. We will utilize the DX Promotion Indices to enable all Group employees and external stakeholders to confirm the progress being made in the Fujitsu Group's transformation, while also ensuring that the initiatives implemented to date can securely take root and permeate throughout the organization.
