ROI Case File No.303 | 'MediTrade's Vague Ambitions'

Chapter 1: The Gamble of Investment—¥500 Million with No Clear Use

The week after resolving PipeWorks' MECE incident, a consultation arrived from Chiba regarding a medical equipment sales company's store strategy. Episode 303 of Volume 25 "The Pursuit of Certainty" tells the story of transforming vague goals into measurable outcomes.

"Detective, we secured ¥500 million investment in our mid-term management plan. The purpose is 'to become the regional No.1 medical equipment sales company.' However, we can't formulate a concrete strategy to realize that goal. New store openings? Strengthen existing stores? Digitization? Everything seems important, and I don't know where to start..."

Kenichi Sato, manager of corporate planning at MediTrade Inc., originally from Chiba, visited 221B Baker Street unable to hide his confusion. In his hands were an impressively covered mid-term management plan and, in stark contrast, a blank "Store Strategy Implementation Plan."

"We sell medical equipment and supplies in Chiba. For hospitals, clinics, and care facilities, we provide diagnostic equipment, consumables, and care products. Currently, we have 5 locations. Annual revenue is ¥2.8 billion."

MediTrade's Strategic Confusion: - Establishment: 2008 (Medical equipment sales) - Annual Revenue: ¥2.8 billion - Stores: 5 (within Chiba Prefecture) - Employees: 78 - Mid-term Management Plan (3 years): Formulated - Investment Budget: ¥500M (allocated to store strategy) - Goal: "Regional No.1 medical equipment sales company" - Problem: Goal too abstract, can't formulate implementation plan

Deep anxiety filled Sato's voice.

"The problem is that the 'regional No.1' goal is too vague. Management says 'just aim for No.1.' But what is No.1? Revenue? Number of stores? Customer satisfaction? There's no measurement standard."

Management Meeting Discussion Record (5th Meeting):

President: "We'll become regional No.1 in three years. We'll invest ¥500M for that"

Sales Manager: "Does No.1 mean by revenue?"

President: "Not just revenue. Becoming an entity where customers say 'MediTrade is the best'"

Sato: "Specifically, what should we do?"

President: "Figuring that out is your job"

Result: Abstract goal remains, no concrete measures

"I've been entrusted with ¥500 million. But I don't know how to use it. ¥300M for new store openings? ¥200M for existing store renovation? ¥100M for system investment? It's all guesswork. Whether it succeeds feels like gambling."

Chapter 2: The Gap Between Dream and Reality—Unmeasurable Goals Can't Be Achieved

"Mr. Sato, how do you plan to measure progress toward the current 'regional No.1' goal?"

To my question, Sato answered.

"Honestly, measurement methods aren't decided. It's just a feeling that 'we should be No.1 in three years.' But that way, we can't tell progress. Are we getting closer to No.1 now? Moving away? Can't judge."

Current Goal Setting (Vague Type): - Goal: "Regional No.1 medical equipment sales company" - Measurement Method: None - Progress Check: "Somehow" - Problem: Success definition unclear

I explained the importance of measurable goal setting.

"Expressing dreams is important. However, to realize dreams, measurement is necessary. OKR—Objectives and Key Results. If you clarify these two, vague ambitions transform into concrete strategy."

⬜️ ChatGPT | Catalyst of Vision

"'Want to become No.1' is a dream. '¥4B revenue' is strategy. With OKR, transform dreams into numbers"

🟧 Claude | Alchemist of Stories

"Goals are the North Star. Key results are the compass. Without both, the voyage can't begin"

🟦 Gemini | Compass of Reason

"OKR is measurement technique. Show direction with Objective, measure progress with Key Results"

The three members began analysis. Gemini developed the "OKR Framework" on the whiteboard.

OKR Structure: - Objective: Qualitative state to achieve - Key Results: Quantitative indicators showing goal achievement (typically 3-5) - Principles: Measurable, achievable, time-bound

"Mr. Sato, let's concretize MediTrade's 'regional No.1' goal with OKR."

Chapter 3: Setting the North Star—Sharpening the Objective

Phase 1: Objective Clarification (1 week)

First, transformed the vague expression "regional No.1" into a more concrete goal.

Current Goal: "Become regional No.1 medical equipment sales company"

Problems: - Where is "regional"? Chiba Prefecture? Kanto? - What measures "No.1"? Revenue? Share? Number of customers? - By when? In 3 years? 5 years?

Stakeholder Interviews:

President: "No.1 means medical equipment sales share within Chiba Prefecture. And becoming an entity where customers say 'MediTrade is reliable'"

Sales Manager: "Specifically, want to increase designated orders from hospitals and clinics. Currently caught in price competition"

Finance Manager: "Want to aim for ¥4B revenue. If that's achieved, investment is recoverable"

Integrating Interview Results:

New Objective: "Become the most trusted medical equipment sales partner among medical institutions in Chiba Prefecture and acquire No.1 share (within 3 years)"

Sato's eyes lit up.

"This clarifies what to aim for."

Phase 2: Key Results Design (2 weeks)

Next, set "measurable outcome indicators" showing goal achievement.

Key Results Design Principles: 1. Quantitative: Numerically measurable 2. Ambitious: Not easily achieved (70% achievement = success) 3. Time-bound: Within 3 years 4. Causal: If these indicators are achieved, Objective is achieved

Competitive Analysis & Market Research (2 weeks):

Medical Equipment Sales Market in Chiba Prefecture: - Market Size: Estimated ¥18B/year - MediTrade's Share: 15.6% (¥2.8B/¥18B) - Competitor A (largest): Share 22% (¥4B) - Competitor B: Share 18% (¥3.2B)

Customer Satisfaction Survey (50 existing customers): - MediTrade: NPS (Net Promoter Score) +8 - Competitor A: NPS +15 - Competitor B: NPS +12

Number of Locations: - MediTrade: 5 stores - Competitor A: 8 stores - Competitor B: 6 stores

Designed Key Results (3):

KR1: Achieve ¥4B revenue (current ¥2.8B) - Rationale: Surpass Competitor A, acquire over 22% share - Measurement: Quarterly revenue review - Required Measures: New store openings + strengthen existing stores

KR2: Improve Net Promoter Score (NPS) to +18 (current +8) - Rationale: Satisfaction exceeding Competitor A (+15) - Measurement: Customer satisfaction survey twice yearly - Required Measures: Service quality improvement, strengthen after-support

KR3: Realize 3 new store openings within 12 months (current 5 stores) - Rationale: Improve market coverage, increase customer touchpoints - Measurement: Store opening completion date - Required Measures: Select opening locations, allocate investment

Completed OKR:

【Objective】
Become the most trusted medical equipment sales partner among medical 
institutions in Chiba Prefecture and acquire No.1 share (within 3 years)

【Key Results】
KR1: Achieve ¥4B revenue (from current ¥2.8B, +43%)
KR2: Improve NPS to +18 (from current +8, +10 points)
KR3: Realize 3 new store openings within 12 months (5 stores → 8 stores)

Sato nodded deeply.

"Now 'regional No.1' is clear in numbers."

Chapter 4: The Compass of Measurement—Tracking Progress

Phase 3: Investment Allocation Decision (1 month)

With OKR clarified, the ¥500M investment allocation also became clear.

Investment Allocation:

Investment Priority: 1. New store openings (top priority for KR3 achievement) 2. Existing store renovation (for KR2 achievement) 3. Digitization (support KR1, KR2)

Phase 4: Quarterly OKR Review (3 years)

Q1 (3 months later):

KR1 Progress: ¥2.92B revenue (annualized) - Progress Rate: 10% (toward ¥4B goal) - Status: Slightly behind

KR2 Progress: NPS +9 - Progress Rate: 10% (toward +18 goal) - Status: On track

KR3 Progress: 1 new store opened - Progress Rate: 33% (toward 3 stores goal) - Status: On track

Action: - KR1 behind, so strengthen sales system (+3 personnel)

Q4 (12 months later):

KR1 Progress: ¥3.2B revenue - Progress Rate: 33% - Status: On track (new store opening effects emerging)

KR2 Progress: NPS +12 - Progress Rate: 40% - Status: On track (existing store renovation effects)

KR3 Progress: 3 new stores opened - Progress Rate: 100% (achieved!) - Status: As planned

Q8 (24 months later):

KR1 Progress: ¥3.7B revenue - Progress Rate: 75% - Status: On track

KR2 Progress: NPS +16 - Progress Rate: 80% - Status: Nearly achieved

KR3 Progress: 3 stores opened (maintained) - Progress Rate: 100%

Q12 (36 months later, 3 years):

Final Results:

KR1: ¥4.02B revenue - Achievement Rate: 101% (¥4B goal) - Result: Achieved!

KR2: NPS +17 - Achievement Rate: 90% (+18 goal) - Result: Nearly achieved (exceeded Competitor A's +15)

KR3: 3 new stores opened - Achievement Rate: 100% - Result: Achieved!

Overall Evaluation: OKR Achievement Rate 97%

Phase 5: Market Results

Chiba Prefecture Share: - MediTrade Share: 22.3% (¥4.02B/¥18B) - Competitor A: 21.8% (¥3.9B) - Competitor B: 17.8% (¥3.2B)

Result: Acquired No.1 Share!

Customer Evaluation: - Designated orders from hospitals: 45% → 68% - New customer acquisition: +42 facilities annually - Voices saying "MediTrade is reliable" increased

Financial Results: - Revenue: ¥2.8B → ¥4.02B (+43%) - Operating Profit Margin: 8% → 12% - Investment Recovery Period: 4.2 years (plan: within 5 years)

Organizational Change: - Quarterly OKR review became routine - All employees understand KR1-3, recognize their roles - Culture of discussing "measurable outcomes" rather than "vague goals" established

Chapter 5: Detective's Diagnosis—Measurement Creates Strategy

That night, I contemplated the essence of OKR.

MediTrade's initial goal "regional No.1" was beautiful but vague. Everyone agrees, but no one knows what to do.

However, the moment the goal was transformed into three outcome indicators via OKR—"¥4B revenue," "NPS +18," "3 new stores"—strategy was born.

The ¥500M investment allocation was decided, progress measured quarterly, delays corrected. And three years later, MediTrade truly acquired No.1 share.

"Dreams are beautiful. But dreams alone don't change reality. OKR transforms dreams into measurable outcomes and creates strategy."

The next case will also depict the moment OKR transforms vague goals into concrete outcomes.

"'Want to become No.1' is a dream. '¥4B revenue, NPS +18' is strategy. OKR transforms ambitions into reality"—From the Detective's Notes

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