The time has come to start the Hitachi, Ltd Web Conference on 2024 Human Resources Strategy. Regarding materials, for those of you who have requested to participate, you should have received it via email. Please confirm the materials. I would now like to introduce the speakers. Hidenobu Nakahata, Senior Vice President and Executive Officer, CHRO. Lorena Dellagiovanna, Vice President and Executive Officer, Chief Sustainability Officer, Chief Diversity, Equity and Inclusion Officer. Those are the two speakers for today's meeting. Nakahata-san, please start.
Thank you very much for your participation today. Today, we'll be talking about the HR strategy for Hitachi, Ltd. In June of this year, we had the Hitachi IR Day.
We had the presentations from the business sectors and environment, green strategy, innovation was discussed, and governance was also discussed during the IR Day. Today, we will take up a topic which we did not take up at the IR Day, which is the S part of ESG. We will be discussing the human resources strategy. These are the key takeaways. First of all, HR strategy is an important part of management strategy. Therefore, we must fully align the human resources policy with the management strategy. If the management strategy changes, then HR strategy must change as well. We have been making drastic changes to the management strategy since 2010, and therefore, the HR strategy has also undergone significant change.
In April, Mr. Kojima announced the midterm management plan. The management strategy remains intact. It will be further strengthened for further growth. At the same time, in order to realize the management strategy, human resources are of utmost importance. Therefore, HR strategy must also be accelerated going forward. Now, based on the management strategy, I would like to talk about the HR strategy and take up the major measures and talk about the progress made in the past ten years, as well as plans going forward. Regarding the sustainability strategy and diversity, equity and inclusion, this will apply to all of the HR strategies. Therefore, I'd like to ask Lorena to discuss this point on this matter. Lorena, over to you.
Thank you so much, Nakahata-san, and hi, everyone. Very quickly, in the next midterm management plan, in Hitachi we aim to further evolve our social innovation business and achieve the growth leaving our competitors behind through green, digital and innovation. We aim to contribute to the society, protecting from one side the planetary boundaries and from the other side, improving the well-being. This is a big challenge, but thanks to our capabilities and thanks to our workforce, we are really focusing on that, and we are committed even more on sustainability. That's why from April, one of the actions the company has taken has been to strengthen the management structure and integrated all of the sustainability topics in one organization, and appoint the Chief Sustainability Officer.
DEI is playing a very important role, because when we have to solve social challenges like protecting planetary boundaries and improving well-being, we need innovation. To get innovation, we need better ideas. That's why a diverse team working in a very inclusive manner can really bring about better ideas. In this context, the HR strategy is playing a very, very important role because thanks to this strategy, DEI can be implemented across the whole organization. This is today's focus of the presentation from Nakahata-san. Thank you.
Thank you very much. This is the agenda. We would like to discuss mainly three points. First of all, let me talk about HR strategy along the business strategy. We have to, first of all, talk about how business strategy has changed. In 2009, we were beset with a very significant red ink, so JPY 787.3 billion. Therefore, we were compelled to implement a major shift in management strategy. Product and systems were provided to the domestic market. Now, we have shifted to the Social Innovation Business. Data service is also included. This will be implemented globally. This is the significant shift that we have made.
Now, social innovation has been coined by Hitachi, so let me explain this further. For the customers as well as the society, not just for the present, but we aim to resolve the issues and challenges for the future. Not just products and systems are to be provided, but rather IoT, AI, and other innovation will be brought to them in services that we provide. Which means that what we have to do, first and foremost, is the customers' and society's needs must be identified. Hitachi has been focused on product. We felt that high quality products can be sold. We are now focused on the market.
What are the challenges prevailing in the market, and what kind of service we can provide utilizing our products and systems is now our major focus. Let me give you one example of social innovation. This is in Genoa of Italy, smart mobility business. The railway was the operating system as well as the trains and rolling stock. Utilizing IoT, as a service offering can be made, specifically for the public transportation as well as the private transportation. The overall city's transportation can be digitally linked, so that optimized transportation can be enabled. In this way, 10 years ago, we have made a significant shift.
In the MTMP 2024, the mother cycle business will be expanded further. Using data, we will expand the profitability over the whole cycle, especially in the Lumada business. 2021 will be increased fr+om JPY 1.4 trillion to JPY 2.7 trillion over the period. Now, based on this presentation, let me move on to the following page. What is the type of human resources that will be required to enable this? We want to deploy this social innovation business globally. That means we have to be close to the customers, look for the challenges for their future. What kind of human resources, what kind of organization are required, the people who understand the market.
Therefore, we will need diverse human resources across countries with diverse skills. We want to transcend regions. This will also require a specific type of human resource strategy. We have to look for issues, so human resources must be proactive. That is the type of resources we require. Changes are occurring very expeditiously, so agility will be required. Let me compare to the past. In the past, product and service were provided in a static manner. We were at the left-hand side. Japan was growing, and to the electric power companies as well as banks as well as other customers request will be taken into consideration to provide products to accommodate their needs.
Mostly, the workforce was Japanese men and working at the same place and time. Now we want to implement the social innovation business globally, looking for issues globally. That means that we are not going to be providing services from Japan. That means that diverse human resources will be necessary, transcending time and space. Let me go on to the next page. This is regarding the overseas business. Let me give you further detailed explanation. On left-hand side is overseas business [at] 59%, and what used to be 29%, it grew to 59%. 57% are non-Japanese employees. 370,000 is the number of employees. We have 210,000 that are non-Japanese.
In the past it was 20%, so it has changed significantly. As you can see on the right-hand side, the other 210,000, 100,000 people have joined us through M&A, such as GlobalLogic as well as the Honda three companies. They have joined us through M&A. This is having an impact on the human resources strategy. Now, given this backdrop, we have been making changes in the HR strategy. We started this in 2021, but it took time. We spent time to implement the strategy. What we've done, first and foremost, is to have a global foundation, that is a standard database, a grade, a performance, and management must be standardized globally. We've spent time to establish this foundation.
Using this foundation, we have been hiring people as well as DEI have been implemented. Now let me talk about the individual measures. This is the major HR actions in 2023-2024 MTMP. Today I will talk about the four areas indicated in red. Next page, please. First is Diversity, Equity, and Inclusion. This will be promoted further. This is because the management strategy has changed. In order to implement this and have social innovation business on a global basis, Diversity, Equity, and Inclusion will be essential. It will be the engine of the business. It will be led by our President Kojima, and Lorena is also leading this team. Next, the management strategy is changing.
That means that what is expected of management leaders will undergo a significant change. That is the reason why we need diverse management leaders. In the past, when product and systems was our business, it was difficult and challenging, but we were focused and had the leaders appointed from the given field. That will not suffice going forward. Because of the volatile environment, we need knowledge and gather information from other areas than your own. Globalization and digitalization will be essential. These attributes will be required for future leaders.
Collaboration as well as leadership, team leadership, as well as performance. Inside change and acceptance of a diverse talent will be required. More diverse leaders will be required going forward. Now, we need to have a diverse management leaders, and that is of utmost importance. Therefore, for Hitachi, we have 70 executive officers, non-Japanese, as well as a female ratio representation has been enhanced. In 2012, there was no females or non-Japanese. There was Japanese males in terms of executive officers. In 2021, it has exceeded the 10% and 18%. This will lead to 30% in 2030, and half will be non-Japanese. Otherwise, we will not be able to achieve growth for Hitachi in the future. How are we going to nurture such management leaders?
It is not spontaneous. That means that we have to select our future potential management leaders and nurture them with intention. Now, on the executive side, Mr. Kojima is in the selection process. About 25 meetings, talent committees held by business, so that diverse talent, which is considered to be GT+, will be selected who are the future leaders. We have also selected Future 50. The upcoming young talent have been selected as well. GT+ is 530, and non-Japanese 152, and women 107. For Future 50, inclusive of alumni, we have 31 non-Japanese and 26 female. So we have more diversity. We are now establishing pool, and we will give them stretch assignments for the people who have been selected to nurture them with intent.
The executive officers as well as next generation CEO, and will be presented to the nomination committee. Higashihara-san is also included, in the nomination committee. The next CEO will be discussed. We are also conducting, interviews as well. Through this process, we will be selecting the CEO for the future. We are spending time to enable this process. This nomination committee, will be also discussing with the GT+ as well as Future 50. They will be very much involved in the nurturing process as well. This is regarding the Future 50, especially on the right-hand side, as you can see. For the 119 that have been selected, we want to nurture them as they get the experience in terms of management list. Currently 14% have had that experience.
Hitachi Global Life Solutions, JPY 400 billion, 5,000 people, is the size of this company. This is also being implemented in this very next additional human resources. In order to expand the Lumada business by twice, as you see on the left-hand side, we need to have additional, the talents. Whether we can increase the number of additionally capable talents or not, that is the. We have 67,000 people, we would like to increase that up to 98,000 people by 2024, and that will be the differentiating power. The kind of people do we want, that is indicated here. First of all, we need to recruit from outside, and another way is to develop in-house and M&A.
These are the three ways in order to enhance and develop our people. Next page, please. In the past few years, the talents, particularly outside of Japan and in Japan, we have two different bars in the charts. The outside of Japan and Japan, our approaches are different. Overseas, 2021, there was a significant increase in July 2021, GlobalLogic was acquired and added the headcount. The 21,000 and overseas is going to be 59,000, and the 1,650 people are from GlobalLogic. The recruiting capability of GlobalLogic in South America, India and Europe, and we need to tap their ability to hire people, and Vantara as well.
As for Japan recruiting, well, we can hire up to 1,000 people per year. That means the digital talents can be increased by 100. It is sufficient. It is important to develop our own people in-house, 10,000 people each year. We have a Hitachi Academy. We have about 100 courses. 6,000 people sign on to them and they receive their training for DX. Through this activity, we would like to differentiate ourselves. Thirdly, this is to develop the Hitachi culture globally. 100,000 new people joined Hitachi from outside. The universal value of Hitachi shall be taught and shall be cultivated. Well, the mission, the corporate philosophy, values, and the harmony, sincerity, and pioneering spirit shall be taught and fully understood.
In order to enhance the engagement of our people and GlobalLogic, this is the example. PMI, we worked very heavily. As you see on the left-hand side, GlobalLogic. In May 2021, before they joined Hitachi, we went to San Jose and we met all the executives there. The three values of Hitachi and the direction of the Hitachi business were explained, and we gained their understanding and the acceptance. In day one, the first day, we had a town hall meeting. GlobalLogic, the employee survey is to be conducted. Compared to the time they joined Hitachi, the engagement survey results in February this year is even higher than when they initially joined Hitachi.
The growth and the culture, in order to foster that, as you see on the right-hand side, Make a Difference. This is an idea contest, competition to encourage the difference. All the people in all the Hitachi will be able to make contribution to this idea. 457 entries were made, and these are presented to the president. PMI, in order to integrate the culture, what is important is the HR management system, integrated management system. This is what we are focusing upon. The growth mindset shall be cultivated. As you see, global performance management, bottom left, as part of the appraisal and the evaluation, shall also be modified to this direction. This is about Japan, job based on the talents.
Already, 160,000 people in Japan have already adopted the membership-based HR management system. The rest has been shifted to the job-based employment. The significant change is needed. There is a change in the mindset among different generations, particularly younger people. They tend to hop jobs. Also the social innovation business is to be done globally, so the type of business is changing. Because of these major changes of Hitachi, we did this in the past, but we assign jobs to the people. We hire people once a year in this manner, and they are relocated to different positions for promotion.
Retire when they reach the age limit. With this kind of system, it is very difficult to hire people from outside, make career. Also the non-Japanese, the personnel cannot be excluded from this system. What we have to do is to create the job based on the personnel system. As I mentioned earlier, why the membership system worked in the past, it is because the past business model was based upon Japanese business, based upon their product. The stability, the balance in Japan was more important. However, now, as we are embarking upon globalized business, it is more important to clarify the definition of a job based on the works. The other purpose is the growth.
For both the company and the people to grow together, job-based management system is important. People, they're encouraged to raise their hand and select what they want to do. That is to be encouraged. First of all, we need to make the position more visualized and the job duties shall be visualized. Company's responsibility is to show what is required from the people. Then visualization of the human resources, what kind of talents do they have? What kind of abilities do they have? They need to express that clearly, and the matching will be facilitated between the two. It takes time to create this system. This is about people. People do not like change. Since 2013, we started these activities to change the system.
The mechanisms, systems like job description, JG, HGG, and the recruiting, we can create these systems, but these are not sufficient. Communication is needed. Why do we need to shift to job based management system? Since 2017, we started. We have 100,000 union members in Hitachi. We have been having a session, discussion with the union as well. As you see at the bottom, 82% of the people recognize the necessity of job based HR, and 87% feel the necessity of proactive career building. But are they taking actions? For only 42%. Also the behavior change. For example, reskilling, LXP, AI-based recommendation of training and learning programs was adopted, and communication is continuing. These are what we would like to enhance.
From now on, I would like to talk about the KPI for HR strategy and I would like to point out some of the challenges. We are working on these activities as part of our HR strategy, and they shall be reflected on KPIs. First of all, we have the business management, the strategy, we have targets, and then we have HR strategy and KPI. These are the steps or the components of our idea. Some of them are quantifiable, others are qualitative. The global business expansion, from that viewpoint, the HR KPI for example.
The diversification ratio in executive class and these are to be focused upon, and we need to set a target and try to achieve the target, and we need to track the progress. This is about the growth of the business. What shall we do to achieve growth? How many digital digitally capable talents do we need to have? And also the introduction of the job descriptions in Japan and also the talent acquisition ratio of experienced employees in Hitachi. These are to be encouraged as well. This is the first page I mentioned at the very beginning. In the past 10 years, we promoted the HR strategy in line with the business strategy. We are still in the process.
We'd like to continue making efforts and would like to make the presentation to outside external parties as well.
Nakahata-san, thank you very much. We would now like to proceed to Q&A. Those of you with questions, please utilize the Raise Hand button on the screen. When your name is called, please unmute and ask your question. When you no longer have to ask the question, you can release the Raise Hand button. We will not show the video of the person asking the question. We have a simultaneous interpretation for English and Japanese, so please be succinct and clear in your questions as much as possible.
We will first of all take questions from the institutional investors and analysts on the Japanese channel, and then the press and also take the English channel questions after that. Regarding the institutional investors as well as the analysts on the Japanese channel, the floor is now open for questions. If you have a question, please indicate by the Raise Hand button. The floor is open. Any questions? Yes, we have some hands up. Oka-san, please. Please unmute and ask your question in Japanese language. I'm sorry. This is taking time for connection. If you have any questions from the media, we will take a question now. Hiroi-san, please. Please unmute and ask your question.
Question. I hope you can hear me.
Yes, we can hear you well.
I have two questions. First question is regarding future leaders, future CEO candidates. Let me confirm. For the Future 50, you mentioned the number. But for 2016, what was the ratio of non-Japanese and females in the 2016? For group companies, you have mentioned 14%, I think. What is the specific strategy that you're going to be implementing and to achieve these numerical targets?
Please refer to page 21. Regarding Future 50 first. For 2016. Actually, it started in 2017, so it's a number for 2017. At that time, non-Japanese, we hardly had any. There were only several. Now we've been able to increase to the level shown on this table.
That is response to your first question. Now, regarding group company leader assignment is indicated here. As I mentioned earlier, Global Life Solutions is one example. We also have the group IT companies as well. The presidents have been selected from the Future 50 already. For the overseas entity, we will also consider them to be assigned as well. Not just Japanese, but also non-Japanese as well.
Second question. As you are pursuing the job-based HR system, I think you need more mobility. When Hitachi people have left Hitachi, could you possibly accept them to come back? What is your view on this? Are there specific strategies to bring people back to Hitachi when they've already left?
Now, regarding the mobility, will be very important as we implement the job-based HR system, and other companies are following suit as well, so there will be more mobility in the labor market. Actually, we see many people who leave Hitachi and come back. Just because they have left Hitachi in the past, it doesn't mean that we are not going to accept them in the future. It depends on the skill and experience of that individual. If the job matches, they will be a candidate regardless of whether they've been at Hitachi in the past or not. I hope I have been able to answer your question.
The question for the new job, people who have left Hitachi, do you have a special mechanism to offer these jobs?
Answer. Now, experienced hires are subject to same condition. When we try to hire, we will provide the information outside as well. Alumni of Hitachi can become a candidate, if they so wish. Thank you.
Thank you very much.
Now, we'd like to welcome the questions from the people who are on the Japanese-speaking their list. Mr. Yoshizumi. Mr. Yoshizumi, please unmute and ask your question.
Thank you very much. My name is Yoshizumi from SMBC Nikko. Can you hear me?
Yes, I can hear you.
Thank you very much for this opportunity. I have two questions. First of all, the looking at your own strategy, Lumada is quite important.
Among the business segments, cross-border, in other words, to take away the border between the different business segments is important. Today you talked about the entire strategy. One by one, you, how about the coordination across the organizations? Are there any the mechanism to encourage the people from different the units or the organizations? Also, are there any the points that you are focusing upon in order to encourage that? And particularly from the viewpoint of evaluation of the people, I think it is also key to Lumada business in the future.
Thank you very much for your question. This is about the social innovation business, Lumada business. That is the cross-sectional digital business. We created Hitachi Digital, this year, early this year, and this is something that we need to promote. The Hitachi Digital, one role of that organization is, to do cross-functional across, the group companies, across company, across BU, promote the digitalization. They have the cross-functional, cross-organizational, role to promote that. Last week, I went to the U.S. and the Hitachi Digital Summit was, organized in San Francisco. This is, for internal Hitachi, but the people inside Hitachi, what kind of businesses are being generated. That was to be shared. 150 people got together in San Francisco for that event. To share that, the information was one function of that, the cross and the organization activities.
This is not the work that you may have a work which is not suitable for your BU, but there's an opportunity that you can contribute to other BUs or the other organizations. In which case, the question is how to evaluate such a contribution. That is what we need to consider from a Hitachi Digital scope, not just digital. Today, we have Lorena, and she is working on green. Green activities are also cross-organizational, cross-functional, the activities. They have to cooperate across the different organizations and across the different units to promote these ideas. That is important activities for the future.
Thank you very much for your answer. Second question is about the cost. Do you have any issues that you are aware of related to cost, and what is the current status?
We don't have many people, their talents available in Japanese labor market. We are competing for the other talents. Inflation means that the wage level is rising. From a cost point of view, are there any strategy that you have to differentiate yourself from other companies and in terms of the competitiveness? How to capture the competent people from the market? The cost effectiveness of your activities, do you have any particular ways to do that? Do you feel any issues? Could you please elaborate on your response?
For the cost associated, yes, we have inflation.
In the U.S. and in India, turnover is very high right now in Hitachi, so we are fighting for people and for the availability of the personnel. That said, we are trying to increase the number of digitally capable people. What do we have to do? I mentioned about the recruiting capability of GlobalLogic. How many people in which region do we need to secure and hire? That is reflected on cost significantly. I didn't mention this, but GlobalLogic originally including Ukraine, Eastern Europe, as well as India. These are the places GlobalLogic then hired people. They hired people with some experience. That means that the wage level is higher.
For the coming three years, we have expanded the scope more broadly. They may be a junior young engineer, but we also try to hire those people who tend to be senior and junior. We are also including the scope of countries like South America or Eastern Europe. We are trying to expand the scope of recruiting activities. We ask them to join the company and we develop them for their talent development. We change our approach and we can manage that so that we can reduce the cost and we can develop them in-house, and the Japanese people can also be trained together with them. We would like to choose the right approach in developing the people. Did I answer your question?
Thank you very much.
Thank you very much.
Oka-san, please. Oka-san, please.
Question. If you can hear me?
Yes.
I have also two questions. First of all, the 29. Global performance management is the first question I have. Now, you said that you're going to have evaluation which will drive growth, but this is something that Japanese companies do not do a good job. How are you able to do this in appropriate manner? What are you employing in order to have fair evaluation?
The global performance management this has been adopted uniformly globally. There are two areas to consider. First of all, objective will be set. Three or four objectives will be set. It's thinking like MBO. The other is competency. What kind of behavior is shown? That is very important. In terms of competency, the behavior toward the growth, that will be an important focus for evaluation. This is what we are contemplating, and we will adopt this for the group.
Thank you. Second question is regarding speed of decision-making. You now have diverse resources coming from different organizations. As a conglomerate, the bandwidth problems can come to the fore. This is very much related to HR policy as well. What are your thoughts on the speed of decision-making?
I mentioned agile, especially for 2021, GlobalLogic has joined, and their speed in decision-making is so different to Hitachi's decision-making speed. We are well aware of that. In order to pursue the digital business, we need more agility and speed. In the past, Hitachi's approval system, having checks on many layers and going to the management committee thereafter, and management company is only having once a month meeting. Well, these are areas that will have to change. We have to flatten the organization, less layers must be established. In April, risk management meeting and growth strategy meeting and talent committee have been established. Especially in risk management committee, we are making decisions with speed. I hope that will suffice.
Thank you.
Thank you.
Thank you very much. Now, those of you who have raised their hand. First of all, Ayada-san, Mr. Ayada, please unmute and start your question.
Thank you very much. From JP Morgan, my name is Ayada. I also have two questions. In the slide page 23, this is related to page 23. So Lumada business, the 2024 target, JPY 2.7 trillion. In order to achieve this revenue target, well, the 98,000, that is the number of the digital talents, and this is the necessary requirement to achieve this revenue target. Also, Japan and non-Japan, you have two different colors for the digital talent. So to reach these the numbers, which is more challenging, to hire Japanese talents or non-Japanese talents? Any comments?
Thank you very much for the question. First of all, about the number of the talents. One point I can say is, well, for each business unit or the GlobalLogic and each company, future Lumada business, how much or how big will it be? That shall be understood, and then we will translate that into the necessary number of talents. This is the requirement to achieve this. Particularly, the GlobalLogic is looking into this very closely. Well, based upon the business deals, they identify how many people will be needed. Well, 90-some%, you may know that their utilization is high. In order to achieve that, you have to be that much that meticulous. The challenges, yes, both of them are challenging, hiring Japanese and non-Japanese. The overseas markets, digital, the talents are required, and they are in demand.
Recruiting them, as I mentioned, well, there were the 12,000 per year, that is the level of hiring by GlobalLogic, and they need to increase this even further. How well we can manage this, we will change the approach, and this is the major challenge. As for Japanese domestic labor market, well, we are focusing upon developing our own in-house personnel, and this is related to job based on the assignment. Well, education is not effective. If the people educated are not motivated, they need to change their mindset. In order to grow themselves, they need to receive the digital training, and they have to understand and be convinced of the importance of education.
That is related to job-based assignment for them to raise their hand and ask what they want to do. It may be challenging for Japan, but we'd like to promote that.
Thank you very much. This is related to the first question. This is about the development, personal development in Japan. The target, the population is our entire employees of Hitachi Domestic. Or do you have any target on the population by age or by some, the attributes? And also the career change mechanisms or the activation of those programs. Could you please comment on that?
Target, we don't have any specific target population. In Japan, we will be shifting to job-based assignment. The people will consider which position they want to go, and if they are interested in becoming the engineering type, the position, then they will raise their hand, receive education. By age or by any other attribute, we do not intend to classify them into different target population. As for mobility, which page was it? The mobility related. Towards the end of the presentation, I believe I have a slide. The internal posting of the people. That's what we are trying to do to specify the number of our people and the we will put into certain positions. It is increasing.
Also the 1,100 people we are hiring, that many people, and out of them, 600 people are the fresh out of the college. The others, rest of the people are mid-career, and the hiring, recruiting with the previous the work experience. Once they join the company, they can also raise hand and apply for this development program.
Thank you very much. Once again, on page 23, this is the second question. From 2021 through 2024, Lumada sales will be double and, but the, when it comes to HR, the headcount will increase by 1.5x . I don't know if this analysis is correct or not.
The productivity per person will be higher. I believe that is suggested. Are there any idea and/or will the managed service and the using AI going to increase? Is that the reason why you can double the revenue with the talent increase by 1.5x ?
Yes, double the revenue. What kind of talents will be needed? I believe I touched upon this. Page 24, I believe. This, and it shows the difference. Where do we need to increase the talents? For example, domain expert or the design thinkers. These people, if we increase them, then I believe we can increase the revenue significantly.
The software engineers, the demand for them is linked to the size of the business. I think this explains the difference between the revenue increase and the talent increase.
Thank you very much.
Yeah.
Thank you very much. We would now like to take questions from the English channel. Those of you on the English channel, please indicate if you wish to ask a question using the raise hand button. We are now taking questions from the English channel. There seem not. Therefore, we will revert back to the Japanese channel. Taguchi-san, this will be the last question that we are able to take today. Taguchi-san, over to you.
Question. I hope you can hear me.
Yes, we can.
I have one question regarding page 21. Oh, rather, 20 and 21. Regarding the nurturing of management leaders, in terms of selection, I can understand your method, but what about the stretch assignment as well as mentoring, as well as meeting with the officers. If we take example from outside, IMD of Switzerland and Singapore Management Business School, United States, Harvard, are providing education for CXOs. So the state-of-the-art information can be obtained through such a program. This is often done overseas. Especially in terms of human resources development and nurturing, what are the specific measures you are going to adopt for future management leaders?
We have training for selected employees and also many courses are available from overseas as well.
Harvard for CXO. We are now considering sending our people to Harvard courses such as this. We cannot send many, but we will consider this. When I discussed this matter with Nobi-san of formerly working for Microsoft, he said that experience is of utmost importance, and companies should be able to take risk in giving experience to these future leaders of Hitachi. Training as well as courses are important as well. I believe that exposure to experience to these future leaders will be of utmost importance. This is challenging, but we must do this. Global Life Solutions is Taniguchi-san, Taniguchi, and all the executive officers are more than 10 years older, and it's about JPY 400 billion.
It's similar to a listed company. This is a very important experience for this individual. I think this is more important than sending them to schools and courses.
Thank you very much.
This concludes the QA session, and also we would like to bring the Hitachi Web Conference on 2024 Human Resources Strategy Session to a close. Thank you very much for your participation.