ABSTRACT
The term keibi hosho, now widely used in the security service industry in Japan, was coined by Makoto Iida. Clients agreeing to pay in advance for his security service would testify to the need for a security industry to exist in Japan. With the business growing, in order to maintain a clear financial picture useful also for the development of future strategy, Iida felt it would be advantageous to establish the practice of an annual external audit. For several months Iida devoted his energies to bringing about their reconciliation. No other alternatives presented themselves so Iida prepared more detailed future business plans and financial projections and visited more loan officers, explaining his proposal enthusiastically. Promoting his intentions in this way was a valuable learning experience, forcing Iida to be ‘realistic’ and precise in his objectives and providing him with knowledge of the functioning of financial institutions and the nature of their decision-making processes.
