Akio's statement to 200 leaders emphasizes his role in making decisions and accepting accountability.
In a lecture attended by 200 corporate managers and executives at the NPS Management Institute's 40th general meeting on January 13, Akio Toyoda, Chairman of Toyota, highlighted the key principles that have driven the company's success.
Toyoda emphasized the importance of making decisions based on firsthand, on-site understanding, a principle known as Genchi Genbutsu ("go and see for yourself"). This approach ensures decisions are deeply informed by direct observation and connection with the front lines, including feedback from customers, dealers, and employees.
Regarding the Toyota Production System (TPS), Toyoda promotes collaborative, inclusive decision-making through regular executive meetings that encourage diverse viewpoints and innovation. He supports broad application of TPS principles beyond just manufacturing, emphasizing continuous improvement and cooperation with partners, which aligns with TPS’s core philosophy of kaizen (constant improvement) and adaptability.
Chairman Toyoda saw TPS as a corporate philosophy, not merely a means of boosting efficiency in the production genba. He believes that the changes he initiated can fall apart quickly if not maintained. A company that embarks on TPS has a tough road ahead, as it requires hard work to change.
Toyoda encountered difficulty getting his foot in the door with white-collar staff, who viewed TPS as unrelated to their planning and thinking roles. To address this, he established a team with Shigeki Tomoyama to improve operations in the sales division, with the aim of making Toyota's white-collar staff more familiar with TPS.
If a mutual sense of pleasure in increasing the amount of time employees spend doing more valuable work can be fostered, the TPS mindset will endure. Toyota might not be on the right track for major turning points such as CASE, but Toyoda regularly consults with employees and visits various workplaces to facilitate change.
During the Q&A session, Akio answered questions from the attendees about leadership and management decisions. He mentioned that there is no right answer in some situations, such as carbon neutrality. In the auto industry, Toyota might not be on the right track for major turning points such as CASE, but Toyoda emphasized the importance of identifying things that should not be changed and things that must be adapted to ensure long-term growth.
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- In the lecture, Akio Toyoda, the Chairman of Toyota, emphasized that collaboration and the incorporation of diverse viewpoints, key components of Toyota's leadership style, are crucial in maintaining their competitive edge in business.
- Toyoda's approach to finance within Toyota emphasizes continuous improvement (kaizen) and the adaptation of principles like TPS beyond traditional manufacturing, demonstrating his commitment to the long-term growth of the company.
