TOKYO—Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) tannounced that it will restructure the organization as follows:
Restructuring of the Group’s organization
MOL Group will be restructured into a cross-functional organization, with appropriate checks and balances put in place, along three axes who will mutually collaborate and cooperate within the organization as a whole. The three axes will consist of (1) corporate organizations based on specific functions supervised by a “Chief Officer (CxO)”; (2) business organizations supervised by a “Director General, Headquarters of each Business”; and (3) regional organizations supervised by an “Executive Officer (in charge of the regional organizations)”. (*1)
Through this new structure, MOL will be able to maintain a suitable balance between centralization and decentralization of authority in group management, as well as promote flexible business operations and improve group-wide governance.
Relationship Diagram Of The Three Axes
(*1) This is a reorganization of the executive officer system in MOL, which will create the positions of “Chief Officer (CxO)”, ” Director General, Headquarters of each Business” and ” Executive Officer (in charge of the regional organizations)”.This reorganization is related to the responsibilities of executive officers.
Based on the aforementioned framework, MOL will implement the following restructuring measures.
1. Establishment of Human Capital Strategy Division
In the next management plan, scheduled to start in fiscal 2023, MOL intends to develop a group-wide base of human capital that will be responsible for the implementation of the management plan.
MOL views the group’s human resources as “human capital”—personnel who will play a leading role in the creation of new value, a key objective in the group’s vision. In line with this perspective, MOL will establish a new organization, the “Human Capital Strategy Division,” which incorporates the term “human capital.” The division shall be responsible for providing guidance and advice on the planning and implementation of the group’s overall human capital policies, including for overseas regional organizations.
Meanwhile, HRD (Human Resources Division) offices at the group’s major overseas companies (London, New Jersey, and Singapore), which currently fall under the Human Resources Division, will be renamed “Human Capital Partner Offices” and placed under the Human Capital Strategy Division.
2. Establishment of Board of Directors’ Office
In recent years, the roles, functions, and capabilities required of the Board of Directors Secretariat have expanded as corporate governance reforms in listed companies have progressed, necessitating significant changes in the way the board of directors is formed. To fulfill the roles and functions assumed by MOL’s Board of Directors and to develop a strong secretariat system to improve the effectiveness of the Board of Directors, MOL will establish a “Board of Directors’ Office” as a dedicated organization under the Board of Directors.
3. Establishment of Audit and Supervisory Board Members’ Office
MOL will establish an “Audit and Supervisory Board Members’ Office” as a dedicated organization to improve the effectiveness of the Audit & Supervisory Board and to provide stronger support for audits performed by individual Audit & Supervisory Board Members.
4. Development of Chief Officer System
Starting in fiscal year 2023, MOL will establish the Chief Officer system to supervise the group’s cross- sectional (mainly corporate) functions and shift to an organizational structure that takes an integrated and strategic approach for the MOL group. Each Chief Officer is delegated as part of the President’s (CEO’s) authority and responsibility, and each is assigned to direct and control not only MOL (the Head Office) but also the entire MOL group in a specific cross-functional manner. An overview of the chief officer system is shown in the table below.
※ The appointment of each Chief Officer for FY2023 and beyond will be determined and disclosed separately by resolutions passed by the Board of Directors.
※ In line with the development of the Chief Officer system, the positions of the Executive Officer in charge of Business Process Re-engineering, the Executive Officer in charge of Structural Reforms, the
Executive Officer in charge of ICT Strategy (Chief Information Officer), the Executive Officer in charge of Digital Business Strategy (Chief Digital Officer), and the Executive Officer in charge of Compliance (Chief Compliance Officer) will be abolished.
5. Restructuring Measures for Regional Organizations
MOL will restructure each organization making up the overseas business network as shown in the table below, and define “regional organizations” as the organizations responsible for business development and operation in each jurisdictional area. It will establish an organizational structure—after designating a dedicated executive officer for each regional organization. The “Executive Officer (in charge of regional organizations)” will be delegated as coming under the President & CEO’s authority and responsibility and will strongly promote regional strategies in the next management plan.
In addition, we will establish a “Regional Head of Corporate Functions” and a “Regional Head of Marketing” under the Executive Officer (in charge of the regional organizations) who will have the same rank as the general managers of offices, divisions, and units in MOL head office, and the Chief Executive Representative positions will be abolished.
Both positions will assign a dedicated person responsible for each of the corporate and business functions, to establish global and robust business and governance structures through mutual cooperation, provide appropriate checks and balances of each other, and promote collaboration with each office, division, branch, and unit in MOL head office.
6. Restructuring business units/headquarters, and restructuring divisions/units
MOL will restructure each unit and division after 1 April 2023, as shown in the table below. The underlined parts are the changes resulting from this organizational restructuring, and details of individual changes are described below.
(1) Renaming of Human Resources Division
With the establishment of the Human Capital Strategy Division, MOL will rename the Human Resources Division to the “Human Capital Management Division”. It will concentrate on operations related to human capital at the Head Office.
(2) Renaming of Marine Technical Management Division and Liquefied Gas Ship Management Strategies Division
Among the duties under the Marine Technical Management Division, MOL will transfer tanker-related business support and ship management supervision and so on to the Liquefied Gas Ship Management Strategies Division, and rename both divisions to the “Ship Management Strategy and Supervising Division (Dry Cargo)” and the “Ship Management Strategy and Supervising Division (Energy)” respectively.
(3) Renaming of Dry Bulk Business Planning & Coordination Division
MOL will rename the Dry Bulk Business Planning & Coordination Division to the “Dry Bulk Business Strategy Division”, and then restructure the renamed division as an organization that develops sailing route and cargo strategies within the Headquarters of the Dry Bulk Business to make these strategies as the standard in consideration of a global and multi-ship types, and to ensure that strategies are consistent and shared within the headquarters in line with the standard.
(4) Renaming of Bunker Business Division
MOL will rename the Bunker Business Division to the “Marine Fuel GX Division” as an organization that enhances initiatives on upstream business of bunker supply chains, such as strengthening procurement capabilities for clean alternative fuels such as LNG, ammonia, methanol, and biofuels, and bunkering projects related to clean alternative fuels.
(5) Restructuring of the Headquarters of Product Transport & Real Property Business, and establishment of Headquarters of Wellbeing & Lifestyle Business
As an optimal grouping in consideration of future business strategies and business models, MOL will divide the Headquarters of the Product Transport & real Property Business into the “Headquarters of the Product Transport Business” responsible for each business by vessels that transport products (including chemical products), as well as the port and logistics business, and the “Headquarters of Wellbeing & Lifestyle Business” responsible for ferry, real estate, cruise ship, and other businesses, with the aim to encourage stronger cross-functional collaboration and synergy creation within each headquarters.
(6) Restructuring related to Port Projects & Logistics Business Division and MOL Logistics, Co., Ltd.
With MOL Logistics becoming a wholly owned subsidiary of MOL, MOL will move into a new structure where Group Executive Officers will assume the responsibilities of the executive officer (President) of MOL Logistics Co., Ltd. As a result, MOL will change the division of the duties in the Port Projects & Logistics Division as an organization responsible for cross-sectional operations of the Headquarters of Product Transport Business renamed to “Product Transport Business Management Division”.
(7) Renaming of Liner Business Management Division
Since Ocean Network Express Pte. Ltd. is an important group company in MOL’s business portfolio and MOL’s active involvement in the containership business is continually required, MOL will change the name of the Liner Business Management Division to the “Containership Business Division” to reflect the fact that the division has headquarter functions going beyond business management.
(8) Renaming of Real Property Business Division, and establishment of Wellbeing & Lifestyle Business Management Division
With the establishment of the Headquarters of Wellbeing & Lifestyle Business, MOL will change the division of the duties in the Real Property Business Division, and the new “Wellbeing & Lifestyle Business Management Division” will become an organization responsible for cross-sectional operations of the division and new business development.
(9) Establishment of Cruise Business Innovation Project Unit
MOL will establish the “Cruise Business Innovation Project Unit” as a headquarters organization, because it is required to formulate and execute strategies through prompt and effective collaboration by making the most of the group resources as well as Mitsui O.S.K. Passenger Line, Ltd., with the aim of promoting and expanding the cruise business as a social infrastructure business.