Alongside its latest earnings announcement, Dentsu today formally announced its new group management structure, effective in January.
Making a change it has been discussing for more than a year, the current Dentsu Inc. will shift to a "pure holding company structure" on January 1, and its trade name will be changed to Dentsu Group Inc.
A new in-house company, Dentsu Japan Network, will also be established to run the group's overall operations in Japan. In parallel, Dentsu Aegis Network will run international operations.
In addition, all the operational functions that Dentsu Inc. previously managed as an operating holding company will pass to a successor corporation, which will then have its trade name changed to Dentsu Inc. on January 1.
The following chart summarizes the resulting structure:
A "teaming company"
The company said the new group structure aims to bring together diverse perspectives and make it "a matter of course for innovation to be generated from anyone, anywhere". Dentsu will "create new value and new businesses by forming flexible teams not only within Dentsu, but also with various external partners," the company said.
The holding company, Dentsu Group Inc., will ensure group governance and "empower" the
group companies to create value and innovation. "Rather than a conventional holding company, Dentsu Group Inc. aims to become a 'teaming company,' or a company of making all the companies one team", according to a release.
Dentsu Japan Network, overseeing the 116 domestic group companies, will build a "flat and tightly knit network" that is able to respond quickly by forming optimal teams, the company said.
The new Dentsu Inc., one of those 116 group companies in Japan, will "pursue business growth in a more autonomous manner and accelerate its business transformation at a more advanced speed never seen before".
Dentsu also outlined the prospective board members and executive officers for the new units (all pending formal election):
Dentsu Group Inc.
The holding company will have the following board members, including new additions Nick Priday and Gan Matsui:
Dentsu Group Inc. will also have the following 14 executive officers (one president and CEO, two executive vice presidents and 11 executive officers:
Dentsu Japan Network
Dentsu Japan Network will have the following executive officers (one president and CEO, plus three executive officers:
Dentsu Inc.'s board will include the following four directors, in addition to a corporate auditor:
Hiroshi Igarashi will also serve as president and CEO of Dentsu Inc., along with two EVPs and 22 executive officers. For details please see Dentsu's announcement here.