[Survey of SMEs] Less than 30% of employees are performing at their full potential. Findings reveal a persistent loss of 720,000 to 1 million yen per person annually.

Many business owners are investing in "new strategies" for their organizations, such as DX (Digital Transformation), new business ventures, and human capital management.

However, are they achieving the results (financial metrics) that justify these investments? A latest proprietary survey conducted by Nexcent Inc. (Representative Director: Yoshinori Nukamiya) in January 2026 (N=542) has brought to light the failures in "organizational structure" that many executives have long ignored.

The survey revealed that only 29.5% of employees feel they are able to perform at 90% or more of their full potential. The reality that 70% of employees are unable to give their all has previously been associated with an annual labor productivity loss of approximately 720,000 yen per person. While this figure was announced before the COVID-19 pandemic, this survey confirms that a similar or even greater loss of nearly 1 million yen continues to persist.

1. Background of the Survey: "Why are strategies not being executed on the front lines?"

Currently, Japanese companies are implementing many "strategies," such as promoting DX and human capital management.

However, because the foundation remains outdated, there are frequent cases where investments do not lead to results.

The purpose of this survey was to visualize "buried profits" (hereinafter referred to as "buried profits") that do not appear on financial statements and to highlight structural issues for the sustainable growth of companies.

2. Survey Summary

・ [Quantitative: Buried Profits] It was found that due to deficiencies in the organization's execution foundation, approximately 720,000 yen in buried profits per employee are occurring annually.

・ [Fact: Performance Potential] Less than 30% of employees feel they are performing at their maximum capacity, indicating that the management assumption that "performing at 100% is the norm" has collapsed.

・ [Structure: Execution Foundation] More than individual health or motivation, organizational structural factors—specifically "whether management intent is being communicated to the front lines"—largely dictate performance.

3. Key Survey Results

This survey revealed that the factors hindering the realization of full potential depend more deeply on "organizational structure" than on individual consciousness.

1) [Collapse of Assumptions] "Performing at 100%" is by no means the standard

The group capable of performing at their full potential (90-100 points) is a minority at 29.5%. It was confirmed that the management assumption itself—that "employees should naturally be motivated"—is difficult to sustain within modern organizational structures.

2) [Dominance of Structure] The "organizational foundation" dictates results more than personal condition

Even if an individual's condition, such as sleep and exercise, is good, those who rate their organization's execution foundation poorly have a performance score 26.8 points lower than those who rate it highly. It is a state where a flawed structure is canceling out individual effort.

3) [Weakening of the Foundation] Clogging of the "pipe" connecting management intent to front-line results

A difference of 15.1 points in individual performance arises solely from whether or not an employee feels that "management policy is being practiced on the front lines." Strategies "stagnate" not because of a lack of employee ability, but because the "foundation" for conveying the intentions of management is not functioning.

5. Survey Overview

・ Survey Name: Survey on the Actual State of Organizational Execution Foundations and Productivity Loss

・ Survey Targets: SME business owners nationwide (n=43) and general employees (n≈500)

・ Survey Period: January 2026

・ Survey Method: Internet-based panel survey (using Questant)

・ Main Items: Self-evaluation of work performance (Q4), sense of practice of management intent (Q3), evaluation of organizational execution foundation, individual condition, etc.

・ Notes on Data: This survey does not identify or collect health information or sensitive information of specific individuals; it is a statistical analysis based solely on "feelings of organizational operational failure" and "subjective estimates of productivity decline." Furthermore, we comply with laws and regulations and have acquired and utilized data within the scope of prior consent obtained from respondents.

[About Nexcent Inc.]

Nexcent Inc. is a group of experts (operational outsourcing/trust/specialized management group) that reconstructs execution foundations for SMEs to achieve high performance. With a focus on three core elements—"situational awareness," "purpose consciousness," and "compassion"—our mission is to update the "strategy execution mechanisms" of client companies and create a sense of fulfillment in the world.

・ Company Name: Nexcent Inc.

・ Address: 2-15-22 Shinjuku, Shinjuku-ku, Tokyo 160-0022

・ Representative: Yoshinori Nukamiya, Representative Director and President

・ Business Description: Provides hands-on support for strategy execution and internal branding, contributing to the realization of client companies' purposes and philosophies.

・ Established: August 2006

・ URL: https://www.nexcent.co.jp/

Nexcent Inc.

https://www.nexcent.co.jp/lets-talk.html