Tag: Toyota Culture

Toyota #1 for a Reason

Experience is often gained by making mistakes, however, we don’t have to repeat them for the sake of experience.  This is one of the reasons I decided to read “Toyota Under Fire” by Jeffrey K. Liker and Timothy N. Ogden.  Aside from the many positive reviews this book has already received, it claims to present “The definitive inside account of Toyota’s greatest crisis – and lesson you can apply to your own company.”

Just as interesting though are two very strong statements or “subtitles” that appear on the front cover.  At first I thought these statements were quite bold considering that Toyota’s most troubling times are not that far behind us:

  1. Lessons For Turning Crisis Into Opportunity, and
  2. How Toyota Faced the Challenges of the Recall and the Recession to Come Out Stronger

I don’t think any company would savor the opportunity to experience the crises that Toyota has been subjected to over the past few years.  It is certainly easier and much cheaper to learn from the experiences and “mistakes” of others.  Each crisis that Toyota faced was compounded by the presence of new ones,  namely,

  1. Sudden Acceleration concerns and the recall of over 10 million vehicles,
  2. Enduring significant media and government scrutiny while being subject to the most intensive investigation in many years,
  3. Defamation of the Toyota brand and loss of consumer confidence in the company and it’s products, and
  4. An economic downturn that affected every manufacturer around the world.

These were certainly very difficult times and the lessons to be learned from them are sure to be of value to every business.  In the typical Toyota style, they once again have opened the doors to share their lessons learned – an opportunity that few companies dare to offer.

Endorsements

The statements supporting this book imply that successes have already been realized.  I, like you, would be more than a little concerned if these were Self-Proclaimed statements issued by Toyota’s leadership.  The good news is they aren’t.

An article published in the Toronto Star, “Toyota Bags 3rd Consecutive Reader’s Digest ‘Most Trusted Brand’ Award“, presents the best endorsement of all – it’s from us – the consumer.  The Reader’s Digest Trusted Brands program awarded Toyota ‘Most Trusted Passenger Car Brand” for the third year in a row and the 2011 Most Trusted Hybrid Brand.

Toyota is the number selling car brand in Canada and is recognized for having the most fuel-efficient car fleet and providing the greatest value to customers.  I was surprised to learn that 80% of Toyota’s sold in the past 20 years are still on the road.

Respect is Earned

As the expression goes, “Respect is Earned”.  I contend that the same is true for Trust.  Perhaps the realization that Toyota is as concerned about people, employees and customers alike, that the very culture that defines the company has extended to its customers as well.

As such, Toyota’s resilience and sustainability through these crises is further evidence of the unique and powerful culture upon which the company itself was founded.  I’m excited by the opportunity to learn more about this amazing company.  Toyota Under Fire will certainly prove to be a good read.

Until Next Time – STAY lean!

Vergence Analytics
Twitter:  @Versalytics
Advertisements

Lean Recalls – Compromising Safety?

Is there ever a time when risk outweighs the real fix?   As we are quickly learning from the latest news regarding Toyota’s proclaimed “savings” through limited safety recalls, the answer is “NO”.  The details of the story surrounding Toyota’s knowledge of the mounting safety concerns and the Toyota’s defense is very disturbing.  Toyota has responded by stating “Our first priority is the safety of our customers, and to conclude otherwise on the basis of one internal presentation is wrong.”

Are Toyota’s actions aligned with this statement? According to the news we’ve been reading, the answer again is “NO”.  We would suggest that Toyota’s attempt to downplay “one” internal presentation is extremely weak.  Why?  Simply because that one internal document happened to be presented by Yoshimi Inaba, Toyota’s top North American executive, and as such the content becomes much more significant and relevant.  An executive presentation is expected to be factual and with purpose.  To suggest otherwise and relegate this to the category of ‘discussion topics” and one person’s opinion is a real stretch.  If this is indeed the case, then there are real concerns within the leadership ranks of Toyota.  When the president speaks, people listen for a reason.  What they say affects in some way – good or bad.

Akio Toyoda, president of Toyota, and other executives are on the firing line as they present their case in the US congressional hearings.  In Akio Toyoda’s own words, “We pursued growth over the speed at which we were able to develop our people and our organization.”  As we have mentioned in previous posts, Toyota’s communication strategy has been lacking as this crisis continues to unfold.  We would suggest that this is indicative of the underlying problems that Toyota is experiencing.  Effective communication was once at the core of Toyota’s culture and to this end, we would agree that Toyota’s culture has been compromised.  What is debatable is whether this is strictly due to growth.  Is this a factor that is attributable to the sheer size of the company?  Is this the result of an evolution in culture that lost it’s roots?

As size increases, so do layers of management and the number of “gatekeepers” that attempt to filter out the critical information.  Whether or not the original message remains intact is one the faults of bureaucracy.  While Toyota traditionally has managed to “keep it real” and encouraged forward thinking and free dialogue, layers of management may have eroded this once highly characteristic trait of the Toyota culture.

Is Toyota solely to blame?  It appears that the government Safety Regulators have some explaining to do as well.  Surprisingly, the scope and extent of recalls can actually be negotiated.  The short lesson learned is that we cannot knowingly compromise human safety in our products and services.  In simpler terms, when human lives are at risk, there is no such thing as a LEAN Recall.

As we have emphasized through our many pages and posts, the culture is the company.  In our post, “Lean Execution:  Competing with Giants – It’s all about speed“, we featured two video clips of Domenic Orr, CEO of Aruba Networks, who discusses the rapid growth of his company.  “Thoughtful Speed of Execution” and learning to recognize Boulders, Rocks, and Pebbles, and teaching our gate keepers to do the same are two steps more than may have been taken already.

Related links:  Toyota vows shake-up, lawmakers seek more reform (Reuters), Toyota’s latest apology, Toyota apologizes for handling of safety issues,

Until Next Time – STAY lean!