Tanabe Consulting Launches Group Governance Development Consulting Service

Tanabe Consulting Co., Ltd., a pioneer in Japan’s management consulting industry headquartered in Chiyoda-ku, Tokyo and Yodogawa-ku, Osaka, and led by President and Representative Director Takahiko Wakamatsu, has launched its “Group Governance Development Consulting” service. 1. Background of Development In recent years, mid-sized companies in Japan have increasingly shifted toward group management structures as part of their strategies for sustainable growth, including the expansion of subsidiaries through M&A and transitions to holding-company structures. At the same time, as group management expands, corporate governance issues such as misconduct at subsidiaries and deficiencies in internal controls have become more apparent. Revisions to Japan’s internal control reporting system, effective from April 2024, require stronger monitoring systems across entire corporate groups, including subsidiaries and affiliates. In addition, Japan’s Corporate Governance Code calls for verification of resource allocation and accountability in group management, further increasing expectations for group-wide risk management. The number of listed companies disclosing internal control deficiencies is also rising, and because many of these issues originate at subsidiaries, building an effective subsidiary management system led by the parent company has become an urgent priority. However, many mid-sized companies face a shortage of specialized personnel and struggle with questions such as where to begin. As a result, demand is growing for partners that can provide hands-on support from system design through implementation and establishment. Against this backdrop, Tanabe Consulting developed its Group Governance Development Consulting service. Drawing on extensive experience supporting group management at mid-sized companies, the service provides end-to-end support from governance structure design to institutionalization. 2. About the Group Governance Development Consulting Service This consulting service is designed for mid-sized companies with group management structures and multiple subsidiaries. It supports the development of group governance as a foundation for sound group management while eliminating risks that could damage corporate value. Specifically, the service helps build highly effective governance structures by clarifying parent-company approval lines for investments, borrowings, and large contracts; designing appropriate authority structures such as segregation of duties; establishing monitoring mechanisms that combine periodic observation with alerts; and creating risk-based operating systems that classify subsidiaries by risk and strengthen engagement with priority management targets. Tanabe Consulting provides end-to-end support across each phase, from current-state assessment and design to penetration, operation, and establishment. The company aims to build executable systems that do not become overly complex, while taking into account the personnel and resource constraints specific to mid-sized companies. 3. Service Promotion Lead Satoru Murakami, Executive Partner, Corporate Finance Consulting Division, Tanabe Consulting Co., Ltd. Murakami is active across a wide range of areas, including support for establishing holding companies, building group management systems, formulating long-term visions and medium-term management plans, and reforming profit structures at turnaround companies. He is especially skilled at building and driving the execution of management systems designed to achieve numerical performance targets for clients, earning strong recognition from many clients. About Tanabe Consulting Group (TCG) Founded in 1957, TCG is a pioneer in Japan’s management consulting industry and is listed on the Tokyo Stock Exchange Prime Market. Guided by its management philosophy of “loving companies, walking alongside companies, and serving corporate prosperity,” TCG states its purpose as “Supporting that decision with love, changing the world” as a value contribution toward the society of the future. Today, TCG is a management consulting group with eight group companies and more than 900 professionals. Its main clients are top management teams at large to mid-sized companies, primarily mid-sized companies in Japan and overseas. Since its founding, TCG has supported more than 22,100 companies. Through a top-management approach and team consulting, TCG provides integrated support from upstream to downstream management processes, from formulating management strategies to implementing and executing business operations through professional DX services. It is expanding this unique management consulting model globally as well as through regionally rooted services across Japan.