"Akio's Statement to 200 Leaders: It's My Role to Make Decisions and Bear Responsibility"
Toyota Chairman Akio Toyoda Emphasizes Direct Engagement, Continuous Improvement, and Corporate Culture
In a recent lecture at the NPS Management Institute's 40th general meeting on January 13, Toyota Chairman Akio Toyoda shared his management philosophy, focusing on direct engagement, continuous improvement (kaizen), and fostering a positive corporate culture.
Toyoda's approach centers around the Japanese principle of Genchi Genbutsu ("go and see for yourself"), emphasizing firsthand observation to understand issues deeply before making decisions. This practical, ground-level insight is a cornerstone of Toyota's decision-making process.
The chairman is committed to continuous improvement by regularly engaging with quality and operations teams to review performance and explore innovation in all aspects of the company—from production to customer service. His hands-on leadership style drives constant refinement even amid uncertainties.
Moreover, Toyoda places significant importance on maintaining a positive, inclusive corporate culture, where employees feel valued and motivated. He emphasizes employee development and training as critical to long-term success, reflecting his belief that a company's human capital is vital during periods of transformation and challenge.
His leadership style also underscores the collective creation of the future ("the future is ours to create together"), highlighting collaboration and shared responsibility within the company for adapting to change. Throughout his tenure, he balanced respect for Toyota's foundational principles with efforts to navigate industry shifts, including the transition toward electrification.
When it comes to the Toyota Production System (TPS), Toyoda views it as a corporate philosophy, not merely a means of boosting efficiency in the production genba. He believes that every employee, regardless of their role, should understand and practice TPS principles. To this end, he has created opportunities for employees to put TPS into practice, capturing the aspects they wanted to learn.
Despite initial resistance from white-collar staff, who argued that their work was planning and thinking, not the process of making things in a plant, Toyoda and Shigeki Tomoyama established a team to improve operations in the sales division to make Toyota's white-collar staff more familiar with TPS.
Every day, Toyoda visits various genba and makes comments, which helps employees understand what should not be changed and what needs to keep up with the times. He emphasizes the importance of identifying what should not be changed and what is necessary for adapting with the times.
In the auto industry, Toyota is not necessarily on the right track when it comes to major turning points such as CASE (Connected, Autonomous, Shared, and Electric). Toyoda waits for the moment when employees feel compelled to do TPS initiatives themselves. He believes that the changes he implemented can fall apart faster than they were built up.
Toyoda's perspective on making management decisions at Toyota, especially during times of change and uncertainty, is a blend of practical, ground-level insight and human-centered leadership. This approach has been instrumental in Toyota's continued success and adaptability in an ever-evolving industry.
Toyoda's focus on direct engagement and continuous improvement extends to the financial aspects of Toyota's business, ensuring a thorough understanding of financial performance and strategizing for innovation.
His leadership style in business operations, centered around fostering a positive, inclusive corporate culture and empowering employees through training, is echoed in his approach to financial decision-making.
