Toyota Chief Toyoda Discusses TPS and His Struggle to Reinstate Power to the Shop Floor
Akio Toyoda, the Chairman of Toyota, has built his leadership philosophy around the principles of continuous improvement, hands-on engagement, and valuing people. This approach is a direct reflection of the Toyota Production System (TPS) that has profoundly influenced his leadership style.
Born in 1956 as the eldest son of the Toyoda family, Akio Toyoda's first encounter with TPS came at an early age. After graduating from university, he sought to establish his own life separate from Toyota, working at an American investment bank. However, he returned to Toyota, drawn by the TPS mentality he encountered at the Motomachi Plant and the Operations Management Development Division.
The ability to understand and envision the genba, or the workplace, allows one to take full responsibility and make resolute decisions. This principle is at the heart of Akio Toyoda's leadership. He regularly engages with employees at all levels, investing in their development, and fostering a positive, inclusive, and customer-focused corporate culture.
The TPS mentality Akio Toyoda learned at Toyota has since become his management philosophy. TPS's core elements—continuous improvement, respect for people, and problem-solving at the source—are reflected in Toyoda's approach. He meets with quality and operations teams to review performance and implement improvements, ensuring Toyota maintains its hallmark quality and efficiency.
Akio Toyoda also emphasizes working "for someone other than yourself," showing a commitment to stakeholder value and social responsibility rooted in Toyota’s founding values. This extends TPS’s focus beyond process optimization to include fostering trust, customer-centered service, and cultural pride in automobiles.
In his lecture titled "What TPS (Toyota Production System) Means to Me - The Fight to Restore Authority to the Genba" delivered on January 13, 2023, to 200 corporate managers and executives in Tokyo, Akio Toyoda reiterated his belief in TPS as more than just a means of boosting plant productivity. He regards it as his personal management philosophy.
The NPS Management Institute, an independent research group launched in 1982 by Mikiya Kinoshita, Kagetami Kawasaki, and Masahito Hoashi, has played a significant role in Akio Toyoda's understanding of TPS. The institute, which currently has more than 45 member companies or one per industry, was the setting for Akio Toyoda's first encounter with the institute in 1999.
The institute's first chief advisor was Taiichi Ohno, the former Toyota Motor Co., Ltd. Vice President who codified TPS. Shigeki Tomoyama, Toyota Executive Fellow, became the fourth person to serve in this role last year.
Akio Toyoda's deep-rooted TPS philosophy, skills, and conduct later enabled him to fulfill his role as the person responsible for Toyota. He believes that a key role of top leadership is deciding when it is time to quit, for the sake of future generations.
In summary, Akio Toyoda's leadership philosophy is an extension and application of the Toyota Production System principles tailored to the challenges of global automotive business today. The elements of his philosophy—hands-on management, continuous improvement, employee engagement, a positive corporate culture, and a broader vision—define his leadership style and contribute to Toyota's sustained success.
Akio Toyoda, in his capacity as the Chairman of Toyota, has integrated the principles of TPS into his management philosophy, using them to lead the company effectively in the global business landscape. He strongly believes that a successful leader should always invest in the development of employees, fostering a supportive and inclusive corporate culture while prioritizing continuous improvement and problem-solving.
TPS's focus on valuing people and customer-centered service, combined with Akio Toyoda's commitment to social responsibility, has resulted in a leadership style that emphasizes working for the benefits of stakeholders and promoting trust, cultural pride, and innovation. This approach, rooted in the TPS mentality, allows Toyota to maintain its quality and efficiency in the ever-evolving world of finance and business.
