Why Marubeni is Pushing Organizational Reform to Boost Investment Accuracy
Major trading company Marubeni is advancing organizational reforms to improve the accuracy of its investment decisions. According to reports (JBpress, March 27, 2025), Executive Officer Minako Wakayama cited Berkshire Hathaway and Hitachi as benchmarks, stating that the company is fundamentally revamping its processes—from selecting investment targets to monitoring and exiting.
What this news highlights is a mindset shift: rather than focusing solely on whether to invest, Marubeni is designing evaluation periods and exit conditions in advance. This is a prime example of “reversible management.”
For small and medium-sized enterprise (SME) owners, reforms at a giant like Marubeni may seem worlds away. However, the core principle of enhancing investment reversibility applies regardless of company size. This article uses Marubeni’s case as a springboard to explain how to design “reversible investments.”
Three Mechanisms Supporting “Reversible Investments”
The heart of Marubeni’s reform lies in transforming investment decisions from a “once decided, it’s final” approach into a system that allows continuous reassessment. Specifically, three elements are crucial:
1. Set an Evaluation Period in Advance
The most common pitfall in investment decisions is postponing judgment with a “let’s wait and see” attitude. In many cases, this “waiting” drags on, and by the time you notice, significant losses have already occurred.
Marubeni sets a clear evaluation period for each investment and strictly follows a rule: if predetermined results are not achieved within that period, the next action—including exit—is taken. This is akin to setting an “expiration date” for investment decisions.
For SMEs, when launching new businesses or making capital investments, it’s effective to set deadlines in advance, such as “re-evaluate after three months” or “check exit conditions after six months.” This deadline creates a final opportunity to reverse the decision.
2. Define Exit Conditions in Advance
Deciding “under what conditions we will exit” before starting an investment is extremely important. Many business owners begin investments without defining exit conditions, ultimately expanding their losses.
At the pre-evaluation stage, Marubeni always considers not only the “expected scenario” but also the “worst-case scenario” and the “exit conditions for that scenario” as a set. This enables rational decision-making without being swayed by emotions.
For SME owners, I recommend setting a specific benchmark—such as “if this figure falls below this level, we will exit”—before making an investment. This benchmark clarifies the point of no return.
3. Determine Monitoring Frequency and Methods
Post-investment monitoring is also essential for “reversible management.” Marubeni has built a system to regularly monitor the performance of investees and changes in market conditions, quickly identifying deviations from initial assumptions.
The key is to decide the frequency and methods of monitoring before investing. Having concrete rules like “check sales monthly” or “analyze market conditions quarterly” enables early detection of problems.
For SMEs, the owner often handles monitoring themselves. Even in such cases, it’s important to set regular checkpoints on your calendar and make a habit of reviewing them.
The Competitive Advantage of “Reversible Decisions”
Berkshire Hathaway and Hitachi, the benchmarks Marubeni uses, are companies that have achieved long-term growth by enhancing the reversibility of their investment decisions. They don’t think, “If we make a mistake, we can just start over.” Instead, they design from the outset “how to reverse course when we make a mistake.”
This mindset is something SMEs should actively adopt. Why? Because unlike large corporations, a single major failure can shake an SME’s very foundation. That’s why “reversible design” is indispensable for investment decisions.
“Reversible investments” do not mean conservative management. On the contrary, they are a mechanism that enables aggressive investment. With the reassurance that “even in the worst case, we can recover to this point,” business owners can take bolder risks.
In Conclusion: Your First Step Toward “Reversible Investments” Starting Today
What we can learn from Marubeni’s case is that the mechanisms for enhancing investment reversibility are not at all special. Setting evaluation periods, clarifying exit conditions, and establishing monitoring rules—these are all things you can start practicing today.
Why not pick one of your current investment projects and review it from these three perspectives? That single step could prevent significant future losses and lead to more solid growth.
“Reversible management” is never about running away. It is a realistic strategy for achieving smarter, stronger, and more sustainable management.
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