(Issued in August 2023)
3

SOMPO’s Purpose Management

Driving Force for Value Creation

Starting point of the Value Creation Cycle

Overview of initiatives to spread the concept of Purpose

For the promotion throughout the Group of SOMPO’s Purpose Management that originates from My Purpose, we are developing initiatives to spread the concept of Purpose from three layered perspectives.

The first is “Executive leadership communication,” represented by Town Hall Meetings, which encourages change toward the realization of Purpose. Led by Group CEO Sakurada, executive leaders from each business hold Town Hall Meetings on a regular basis to deliver top-down messages in line with the transformation phase.

The second is “Frontline initiatives.” In order to realize Purpose and transform our culture, it is essential for each employee who empathizes with the messages from the executive leaders to put them into practice in the offices. To support this, we are organically linking and developing bottom-up initiatives such as My Purpose 1-on-1 training for management, various workshops, and the SOMPO Awards, a Group-wide awards program.

The third is “measurement and modeling.” These initiatives to spread the concept of Purpose are combined and accumulated as knowledge, which is then provided as feedback to the “executive leadership” and “offices” to further evolve and deepen the initiatives.

The overview of the spread of SOMPO’s Purpose shows that we organically link the layered initiatives, gain understanding and verify them from both qualitative and quantitative perspectives, and move them forward.

figure: Pursuit of MY Purpose: 1. Top management communication → Group CEO town hall meetings. 2. On-site efforts → Award applications, participation in workshops for management, on-site surveys and case studies, participation in MY Purpose 1-on-1 training, participation in MY Purpose introduction training. 3. Measurement of penetration → Engagement Survey (Japan) 3.50pt (Overseas) 4.12pt.
Visualizing the impact path of human capital

Our Group uses the term “Unrealized Financial Value” to refer to value that leads to financial or corporate value in the mid- to long-term that is generated by human capital-related initiatives (actions), including the spread of the concept of SOMPO’s Purpose, and the entire Group is working to improve it. By visualizing the paths through which they lead to the creation of value, we are also steadily advancing Purpose Management that originates from My Purpose by using an evidence-based approach and having it lead to sustainable growth and increased corporate value.

Specifically, we are working to map “Human Capital Impact Path” with a series of paths that lead to creation of financial value by generating changes that lead to improved engagement within the organization with actions concerning pursuit of My Purpose and promotion of diverse work styles, as well as changes that encourage taking on challenges. We are promoting the utilization of the human capital impact paths by detailing the paths, estimating the financial impact, and managing KPIs in conjunction with the strategy.

figure: Pursuit of MY Purpose + promotion of diverse work styles → increased engagement → action (challenge) → internal and external involvement → unrealized financial value → financial value → realization of Purpose