OREANDA-NEWS. Hitachi, Ltd. announced plans to initiate headquarters reforms of Group Corporate divisions with planned completion by March 31, 2014. These structural reforms are aligned with Hitachi's Smart Transformation Project, one of the key initiatives of the 2015 Mid-term Management Plan aimed at achieving increased global growth.

Specifically, Hitachi will redefine the roles and responsibilities of its Group Corporate divisions along functional lines and give them increased responsibility for formulating and implementing global growth strategies for the Hitachi Group, particularly as they relate to promoting Hitachi's Social Innovation Business. With this strategic reorganization, Hitachi has clarified the required functions, responsibilities and accountability of headquarters.

Organizationally, Hitachi will create a simpler, highly functional organization that focuses on strategy formulation and implementation, and on making proposals and providing support to executives. Along with this, Hitachi has also created new posts "Chief XXX (Area of Responsibility) Officer," with these officers having primary responsibility for the new headquarters roles and functions. Hitachi has appointed executive officers to these positions to reinforce the importance and accountability for global business strategy.

In accordance with these moves, existing highly specialized headquarters' service functions (business support functions) will be reorganized as Professional Services divisions apart from headquarters. Additionally, the Research & Development Group will be redefined from the perspective of clarifying its position in the value chain.

These reforms are being instituted to sharpen Hitachi's strategic focus and strengthen Hitachi's global management. The goal is to improve the efficiency and speed of fundamental tasks and business decision making through the Hitachi's Smart Transformation Project. The Hitachi Smart Transformation Project has been initiated with the goal of transforming Hitachi into a global major player.

At present, there are approximately 1,800 headquarters staff employees, excluding personnel in research and development divisions, contract roles and others. Plans call for this workforce to be decreased to approximately 600, excluding Professional Services divisions.

The following reorganization will be effective October 1, 2013, as the first stage of the corporate headquarters structural reforms.