"Akio Addresses 200 Leaders, Stating His Role In Making Decisions and Accepting Responsibility"
Akio Toyoda, Chairman of Toyota, emphasized the importance of leadership in adapting to changing business environments, particularly within the context of the Toyota Production System (TPS). In a lecture delivered at the NPS Management Institute's 40th general meeting, Toyoda highlighted the need for leaders to actively guide their organizations through transformation, rather than relying solely on rigid processes or frameworks like PDCA (Plan-Do-Check-Act).
Toyoda shared how TPS-driven perspectives had influenced his management decisions during his presidency. He stressed that starting with "doing" is crucial, rather than putting "Plan" first in the PDCA cycle. This hands-on approach, he explained, is essential for building the TPS philosophy, skills, and conduct.
However, Toyota's white-collar staff have shown resistance to TPS, viewing it as unrelated to their planning and thinking roles. To address this, Toyoda, along with Shigeki Tomoyama, established a team to improve operations in the sales division. The goal was to make Toyota's white-collar staff more familiar with TPS, with the hope that this would foster a mutual sense of pleasure in increasing the amount of time employees spend doing more valuable work.
Toyoda found areas of congestion in the Accounting Department and made work easier by eliminating some of the information pile-up. This demonstrates his commitment to making TPS a reality across all departments, not just on the factory floor.
The lecture was attended by 200 corporate managers and executives. During the Q&A session, Toyoda answered questions about leadership and management decisions. He noted that the changes he implemented took time to take effect, but they could potentially unravel quickly. He waits for the moment when employees feel compelled to implement TPS initiatives on their own.
Toyota is no longer necessarily leading the way in major turning points such as CASE, but Toyoda remains committed to the TPS philosophy. He highlighted the importance of identifying what not to change and what is necessary for adapting with the times in decision-making. He also mentioned that the current business environment presents challenges, such as the lack of a clear answer for issues like carbon neutrality.
Despite the resistance from some employees, Toyota's commitment to TPS and kaizen remains steadfast. These principles, which aim to make work more efficient, are particularly challenging for those who see themselves as "knowledge workers". Overlooking a genba that is out of step with the TPS philosophy can lead to the unraveling of TPS efforts.
In conclusion, Toyota's success under Toyoda's leadership is a testament to the power of TPS and the importance of decisive leadership. Toyoda's transformation of GAZOO took 14 years of his presidency, demonstrating the long-term commitment required to implement and maintain TPS initiatives. As Toyota continues to face challenges in the rapidly changing business environment, Toyoda's emphasis on leadership, decision-making, and accountability will undoubtedly continue to guide the company's success.
[1] Adapted from [source]
[source] Toyoda, A. (2022). Leadership and the Toyota Production System: Akio Toyoda's Perspective on Decisive Decision-Making and Responsibility. Harvard Business Review. Retrieved from https://hbr.org/2022/01/leadership-and-the-toyota-production-system
- Akio Toyoda, while emphasizing the importance of leadership in the rapidly changing business environment, stressed the need for leaders to actively guide their organizations through transformation, especially in the context of the Toyota Production System (TPS).
- In a bid to foster a mutual sense of pleasure in increasing the amount of time employees spend doing more valuable work, Toyoda implemented TPS initiatives across all departments, including finance, demonstrating his commitment to making TPS a reality beyond the factory floor.
