Single-Handed Struggle for System Revisions and Company Culture Reboot
In the past decade, Toyota Motor Corporation (TMC) has undergone significant organizational changes, with a focus on enhancing management effectiveness. One of the most notable shifts has been the reduction in the number of directors at TMC's annual meetings.
Back in 2010, the list of directors, operating officers, and auditors ran to more than 80 names, a stark contrast to the current roster of around 20. Chairman Akio Toyoda, who took office in 2009, has been instrumental in these changes, aiming to create a more agile and responsive management system.
Before Akio's presidency, individual divisions such as engineering and production were powerful, with their heads serving as vice presidents. However, Akio saw that the advisor system, created by senior figures, was not conducive to making ever-better cars and was determined to change the system during his tenure. As a result, the number of former executives serving as advisors and senior advisors has decreased from around 60 in 2010 to none currently.
Toyota has also made strides in increasing diversity within its ranks. The hiring of women in administrative office positions has increased by 40-50% over the past 14 years. At the company's annual meeting, four women out of 43 executives, auditors, chief officers, and other leaders took the stage this year, a small but significant step towards gender parity.
General Administration & Human Resources Group Chief Officer Takanori Azuma has outlined the company's efforts to develop diversity, proposing that the company's proposed directors and auditors include four non-Japanese and two women.
Moreover, Toyota's mission is to "produce happiness for all," emphasizing diverse happiness for diverse individuals. This approach extends to the company's human resources policies, with the rate of male childcare leave at Toyota reaching 40%, with the average length also increasing to just under two months.
In the realm of corporate governance, TMC has transitioned to a company with an Audit and Supervisory Committee. This change may involve adjustments to the Board of Directors' composition to better address management issues. Additionally, roles such as operating officers and executive vice presidents have been redefined to improve cross-functional oversight and flexibility in leadership appointments.
These organizational changes have contributed to a more flexible and effective management framework at Toyota. The company's ability to adapt to rapidly changing business environments is evident in its swift response during the shunto spring negotiations this February, where it provided a response on wages and bonuses in the first round of talks with unions.
While the exact reasons for the reduction in the number of directors at Toyota are not fully understood, it is clear that the company's focus on enhancing management effectiveness and promoting diversity is paying off. As Toyota continues to evolve, it will be interesting to see how these changes impact the company's future success.
[1] Reference: Toyota Motor Corporation's official website and various business news outlets.
In the endeavor to create a more agile and responsive management system, Toyota Motor Corporation (TMC) has reduced the number of directors at its annual meetings from over 80 in 2010 to around 20, with Chairman Akio Toyoda leading these changes. As part of TMC's commitment to diversity, four women and four non-Japanese individuals have been proposed for director and auditor positions, signifying an effort to enhance business by fostering a more inclusive leadership.
