Toyota corporate culture: Lessons for other companies. Jeffrey Liker, Michael Joseus Toyota Corporate Culture: Lessons for Other Companies Toyota Corporate Culture in Brief

Toyota Corporate Culture: Lessons for Other Companies Jeffrey Liker, Michael Joseus

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Title: Toyota Corporate Culture: Lessons for Other Companies
Author: Jeffrey Liker, Michael Joseus
Year: 2012
Genre: Management, personnel selection, Corporate culture, Popular business information, Foreign business literature

About the book "Toyota Corporate Culture: Lessons for Other Companies" by Jeffrey Liker, Michael Joseus

The implementation of lean manufacturing often fails because the system is perceived as mechanistic, a set of procedures and technologies. The authors of the book show that the key to Toyota's success is a special attitude towards people, a combination of the highest management requirements and respect for each employee. Such a culture cannot be instilled in a couple of trainings, and without a special culture, lean production cannot be built. The book describes for the first time the main elements of Toyota's corporate culture - its main "secret weapon". The book will help you learn how to adapt the Toyota culture to the needs of your company, while maintaining its main basis - the pursuit of excellence.

The book will be useful, first of all, to senior managers of companies who are interested in improving corporate culture.

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Let's consider an example of a successfully formed corporate culture at Toyota.

The success of Toyota depends not on specific methods, but on the characteristics of the company’s management culture: a focus on impeccable quality at reasonable costs, mutual trust between management and employees, direct and visible participation of managers in solving production problems and personnel development.

Automotive companies around the world are introducing elements of the Toyota Production System, but in most cases the results do not live up to expectations. Driven by Toyota's impressive successes—reflected in its market capitalization, which in March 2005 was nearly twice that of Ford, GM, and DaimlerChrysler combined—many manufacturers have copied some of the most visible elements of its production system. However, few have consistently achieved the same operational efficiency as Toyota (see Table 1). Why? Perhaps the main reason is that companies exaggerate the importance of Toyota's various tools and techniques - while important, they are just a way to solve specific problems. Let's focus on the real source of Toyota's success, namely its unique management culture.

Five Key Factors in Toyota Corporate Culture

If the implementation of the external attributes of the Toyota Production System is not supported by the necessary management infrastructure, management style and culture, then attempts to move to lean production will most likely end in failure. It is these “cultural” factors, common to all Toyota enterprises (see table No. 2), that distinguishes the company from other automakers.

1. Long-term focus on achieving impeccable quality at reasonable costs and creating an atmosphere of mutual respect between managers and employees. The founders and current management of Toyota pay great attention to the environment and the company's role in society.
2 Managers find the best solution to a problem when they personally study it on the spot. In doing so, they create a learning organization. Managers must be teachers, mentors, role models, encouragers, and always set the bar high. Managers must encourage front-line employees to do specific business tasks well. Ambitious goals are detailed and descended from the top levels of the organization to the lower ones, and the support and initiatives necessary to achieve these goals come from below, from ordinary employees.

Further improvements are easier to implement thanks to standardization.

Managers have detailed, standardized procedures at their disposal. They make decisions about improvements based on consensus: discussions are conducted using reports drawn up on sheet A3, in which all improvement proposals are recorded.

The most comprehensive definition for the totality of these five components of management culture is the “Toyota method.”

It was adherence to the Toyota Way—not numerous problem-solving tools and techniques—that helped the company become the world's second-largest car seller. Moreover, Toyota management does not at all consider these tools or techniques to be fundamentally important elements of the company's production system. They are perceived as temporary answers to specific problems and are therefore considered more of countermeasures, because with their help it is impossible to find a final solution.

To get the most complete picture of Toyota's corporate culture, it is necessary to examine in detail all five fundamental elements.

The process of learning about the Toyota Production System can be thought of as never-ending. I don’t think I understand it perfectly myself, even though I worked for this company for 43 years!

Katsuaki Watanabe, President of Toyota Motor Corporation

WHY ARE LEAN AND SIX Sigma NOT ENOUGH?

If you ask a person who knows the Toyota system well to visit and evaluate any enterprise for compliance with the lean manufacturing concept, it will receive a very low rating, because the expert will primarily pay attention not to the Six Sigma report graphs and impressive savings figures, but to how the work is progressing in the gemba - is there any interruption in flow (is there any waste), are there large repair areas (indication of poor quality), are standard operating procedures being followed, is production based on takt time, are shop floor staff involved in the day-to-day work of the solution problems, etc.

From the very beginning, Toyota believed that investment in human capital was the key to success. The meaning of the Toyota Production System is primarily about corporate culture - the way people think and behave, and this is deeply rooted in the company's philosophy and principles. The focus is on respect for people and continuous improvement.

When Toyota sets up production in a new country, it carefully studies local conditions and how it can adapt its corporate culture to them. This took, in particular, the Toyota plant in Georgetown, Kentucky, USA, for fifteen years. Many companies are frustrated that kaizen blitzes and Six Sigma projects produce only short-term and unstable results. They're trying to find what they've missed, so this book describes and explores the DNA of the Toyota Production System.

WHAT IS CORPORATE CULTURE (IT'S WHAT'S IN OUR HEADS)

People usually have very different understandings of corporate culture. And understanding what's going on in people's heads is not easy. Researchers identify three levels of corporate culture.

1) Artifacts and behavior. These are things that can be observed on a surface level - objects, the physical layout of the workplace, people's behavior in various situations, written documents. But this is just the tip of the iceberg.

2) Norms and values. Norms are rules of behavior accepted by everyone. Values are the principles by which people act. For example, one of the core values at Toyota is the ability to constantly identify problems and improve the system.

3) Core Beliefs. What do we really think about the nature of organizations and our role in them? Do we believe that an employee's role is to contribute as much as possible to their organization's success? Do we think that management has vested interests that conflict with ours and therefore we must fight for our rights every day? Do we believe that work is just a way to earn money for a living or is it a way to contribute to the well-being of society? Very often our beliefs are in the subconscious and are difficult to formulate. We don’t even suspect about some and say “Such is human nature.”

Thousands of people visit Toyota factories every year, observing work at the level of artifacts and employee behavior. Here is a sample set of questions that visitors asked at the Toyota plant in Georgetown, USA:

What monetary rewards do employees receive for producing high-quality products?

How do you determine labor results and what indicators do you use?

What is the absenteeism rate?

Do employees object to overtime, especially if they are not warned about it in advance?

How does Toyota manage to receive so many suggestions from employees?

Although the official system of reward and punishment is undoubtedly of interest, it answers only part of the questions. The questions visitors ask tell us more about their perceptions of production culture than they do about Toyota! We realized that visitors had their own beliefs that the only way to achieve desired employee behavior was through formal systems of reward and punishment. It is difficult for them to imagine that someone can do something if it is not recorded in any way and there is no monetary reward or at least additional points for individual certification. At Toyota, there is a practice of small rewards at the crew level, and potentially larger benefits that are provided to everyone if the plant or company as a whole performs well. That is, Toyota strives to develop in employees a high level of ownership and understanding that their fate depends on the success of the company. At Toyota, the degree of congruence between personal values and attitudes regarding production issues is much higher than is observed in other companies.

Toyota's production culture assumes that managers are leaders, and the latter's responsibility is to train employees. This is not visible when visiting the enterprise, and yet this is precisely the most important part of the manager’s work. We have not observed such a degree of consistency in the training and industrial socialization of employees, as well as the enormous volume of work in the field of training, at any company in the world except Toyota.

PEOPLE ARE THE SOUL AND HEART OF TOYOTA'S CORPORATE CULTURE

Corporate culture is a multi-level phenomenon, rooted in deep and not always conscious beliefs. This cultural foundation varies from country to country and can either enhance or diminish a company's ability to learn from Toyota's example. Japanese culture is based on long-term thinking and collectivism, where the individual is subordinate to the group, while in Western cultures it is the other way around, i.e. situational thinking and individualism prevail there. This does not mean, however, that Japanese corporate culture is not suitable for Western countries, it just differs from Western culture and has distinct specifics.

We are often asked the question: Can a company outside Japan learn anything from Toyota, given that Toyota's corporate culture is so deeply rooted in Japanese culture? For most of its existence, Toyota operated only in Japan and did not document its operating practices in writing. People simply worked and socialized in a certain way, and new employees were gradually socialized into the new work culture through their work activities and training. The traditions, attitudes and methods stemming from the Founding Fathers were passed down orally, and no written operating procedures or manuals were created. But as the company grew, it became necessary to extend its organizational methods not only to other enterprises in Japan, its suppliers and customers, but also to Toyota enterprises in other countries. To do this, it was necessary to describe the Toyota system in writing. It took almost ten years to create such a document under the leadership of then Toyota President Fujio Cho. This document, called the “Toyota Way 2001”, was the fruit of heated debate, about twenty versions were created until they decided to settle on the last one; it was recognized that this version only captures what can be described as of 2001, but the system itself continues to evolve. This document consists of 13 pages and contains an explanation of the principles presented in Fig. 1.2.

Toyota explains these principles as follows.

4) Challenge. We create a long-term vision and solve problems with courage and creativity to realize our dreams.

5) Kaizen. We continuously improve our operational processes, constantly striving for innovation and development.

6) Genchi genbutsu. We believe that when problems arise, you should personally examine the location of their occurrence and do this as quickly as possible.

7) Respect. We respect others, make every effort to understand each other, take responsibility and build a system of mutual trust.

8) Teamwork. We stimulate personal and professional growth, share existing development opportunities and maximize individual and collective performance results.

Under each of the five fundamental principles are detailed concepts, for example, under the principle of “kaizen” there are three subcategories: a commitment to continuous improvement and innovative thinking, building lean systems and structure, and stimulating organizational learning. It is interesting to note that the subcategory “building lean systems and structure” is only at the third level from the top in the Toyota model and is not its central component.

The main problem when expanding the company and working in other countries is the absolute refusal to make any compromises in matters of Toyota philosophy. Toyota believes that without a strong culture in all parts of the company and in all countries around the world, it will lose its competitive advantage.

IN-DEPTH CULTURAL ANALYSIS

The question of which world-class Japanese management methods can be exported to other countries has occupied theorists and businessmen for decades. The book Remade in America answers this question as follows: the hybrid corporate culture that emerged from the Japanese one in the United States is not an exact copy of the culture of a Japanese company, although it can be very effective.

In reality, systems involving people are very complex, and an information or communication system alone cannot change the entire process. For change to occur in the process, people must change, and a person's beliefs and values are rooted in his culture.

Even the same tool or method can have very different meanings in different cultural contexts. Let's look at what this might mean for executives who want to learn from Toyota how to beat the competition. Maybe they will hire consultants and visit Toyota factories, where they will see a lot of interesting things. They will see a clean, well-organized production, where all materials and tools are neatly placed in their places and losses due to movement are minimal; workers clearly understand their responsibilities and adhere to discipline flawlessly. But can all this simply be transplanted into our own production with a different production culture? Will the system experience rejection, as happens when someone else's organs are transplanted to a person? Instead of being a powerful tool for improvement, the new approach will provide more opportunities for management to reprimand and punish employees. In such cases, the lean production system begins to cause only irritation. Toyota also failed to transfer the original Japanese culture to its factories in other countries. The result was always a new culture, some kind of mixture, although Toyota always insisted that it managed to preserve the core principles of its corporate culture.

When crossing national borders, additional levels of corporate culture arise - the culture of a given locality, organization, division and individual culture. These levels are presented in Fig. 1.3.

A specific enterprise exists both in the context of the corporate culture of the company and in the context of local and national culture. Toyota's production system at the Georgetown, Kentucky facility will be somewhat different from that at the Princeton, Indiana facility. The localities, history and people of the enterprise, past and present managers, who leave their mark on the production culture, differ.

7. Toyota corporate culture

Let's consider an example of a successfully formed corporate culture at Toyota.

Five Key Factors in Toyota Corporate Culture

1. Long-term focus on achieving impeccable quality at reasonable costs and creating an atmosphere of mutual respect between managers and employees. The founders and current management of Toyota pay great attention to the environment and the company's role in society.

3. 2 Managers find the best solution to a problem when they personally study it on the spot. In doing so, they create a learning organization. Managers must be teachers, mentors, role models, encouragers, and always set the bar high. Managers must encourage front-line employees to do specific business tasks well. Ambitious goals are detailed and descended from the top levels of the organization to the lower ones, and the support and initiatives necessary to achieve these goals come from below, from ordinary employees. Further improvements are easier to implement thanks to standardization. Managers have detailed, standardized procedures at their disposal. They make decisions about improvements based on consensus: discussions are conducted using reports drawn up on sheet A3, in which all improvement proposals are recorded.

The most comprehensive definition for the totality of these five components of management culture is the “Toyota method.” It was this commitment to the Toyota Way—not its numerous problem-solving tools and techniques—that helped the company become the world's second-largest car seller. Moreover, Toyota management does not at all consider these tools or techniques to be fundamentally important elements of the company's production system. They are perceived as temporary answers to specific problems and are therefore considered more of countermeasures, because with their help it is impossible to find a final solution. To get the most complete picture of Toyota's corporate culture, it is necessary to examine in detail all five fundamental elements.

7.1 Social responsibility, commitment to quality

This is a fundamental principle, the main criterion against which all important decisions of the company's management are compared. Toyota's social responsibility is reflected in its commitment to offering high-quality products at reasonable prices. For example, the company's North American division strives to contribute to the growth of the U.S. economy, the stability and well-being of everyone involved in the company's operations (including suppliers), and the overall growth of Toyota.

Similar language is found in the policy documents of most multinational corporations, but Toyota adheres to these principles more consistently than others. There are many examples of this. Let's say the company's management officially demanded from the developers of the Lexus sedan that their new brainchild has nothing to do with “gas guzzlers” that are subject to increased taxes in the United States. Not all Toyota competitors are still able to create powerful but “clean” cars. The company is also one of the first in the industry to create a new, environmentally friendly vehicle with a hybrid gasoline-electric engine. Toyota is investing heavily in developing other green vehicle technologies, including hydrogen fuel cells and direct injection diesel and gasoline engines. Bordering on fanaticism, Toyota's commitment to producing reliable, safe, durable and economical "clean" cars also stems from a strong sense of corporate responsibility that meets the needs of both customers (due to low operating costs and high resale values) and society. in general (since the company thereby solves social problems related to clean air, energy savings, etc.).

This commitment to these principles is reflected in the way Toyota works with its suppliers. Once, for example, the Toyota plant, in order to reduce costs, offered to refuse the services of a supplier of two key components and set up their production in-house. The idea was very attractive because it promised quick returns as well as additional benefits in terms of quality and inventory management. However, management rejected this idea: the company not only did not abandon outsourcing, but also familiarized the supplier with the findings of its research, which was conducted to identify opportunities for cost reduction. As a result, the supplier did not lose his job and reduced costs. Moreover, Toyota soon signed a contract with him to supply components for another model. Thus, the company confirmed its commitment to finding a solution that is mutually beneficial for all stakeholders. In fact, Toyota was the first to share its own expertise with suppliers to help them improve productivity and reduce costs. For example, in the US, Toyota has created a structure that provides technical support to suppliers. In this way, Toyota is reinforcing the spirit of cooperation and trust that it has cultivated over the past decades. This is evidenced, in particular, by the fact that suppliers constantly call the company one of the best business partners.

7.2 “See with your own eyes”: managers go to the forefront

One of Toyota’s management concepts can be translated into Russian roughly as “see with your own eyes.” According to it, managers should get acquainted with the real situation directly on the scene. In large corporations, decisions are often made “remotely,” but Toyota believes that it is impossible to get a true picture of the problem without seeing everything with your own eyes (see table No. 3). Arriving at the scene, the manager encourages teamwork among the people working on the site, helps them with advice and inspires them with his example. This strengthens the company's culture of continuous learning, since the manager's very presence ensures that ordinary employees will take an active part in solving the problem, get to the bottom of it, and do everything to fix the problem.

Examples of practical application of this concept prove the effectiveness of having a manager at the forefront. At one of the assembly plants in Europe, when attaching the steering column, the threads of the screws were torn off. At first, the screws were simply replaced, and the defect was explained as damage during transportation.

However, failures occurred again and again on the same assembly line. Screws with similar damage were found on several cars. But at the Japanese enterprises where the same cars were assembled, nothing like this happened, which means the company decided that it was all a matter of assembly operations.

However, despite all efforts, the problem could not be resolved. The manager spent more than one hour on the assembly line, personally tightening screws and observing the actions of the workers. As a result, he realized that the root of the problem was a violation of the dimensional chain, which arose because different stamping forms were used in Europe and Japan, i.e. It was the design, not the build quality, that was to blame.

At first, management, relying on second-hand information, forced workers to concentrate on assembly. However, already on the scene, the manager was convinced that the absentee diagnosis was wrong and directed the team’s efforts in the right direction.

As a result, the problem was fixed. Thanks to this incident, plant managers were convinced that when failures occur on the line, they must first see everything with their own eyes and only then look for a solution to the problem.

“This is another book I read, although it’s not really about marketing, but rather about building a business in general. A book about how the largest car manufacturing company in the world is structured and operates - a book about Toyota.”

The book “Toyota Corporate Culture” is quite difficult to understand. At least that's what I thought. I read it for a long time. For 350 pages it took me about 3 weeks of two hours of daily reading. At the same time, I had to re-read this or that chapter or page several times to really understand the meaning of what was said. There are a lot of incomprehensible and specialized words. And by the time you understand what we’re talking about, you’ll get tired of it. Although this is my personal opinion, which does not claim to be an axiom, someone may find the book, on the contrary, simple and understandable.

Why did I decide to read the book Toyota Corporate Culture by D. Liker and M. Joseus?

Despite the fact that the book is not exactly about marketing, the choice was not accidental. I've wanted to read it for a very long time. There are several reasons for this:

Firstly, it’s the world’s experience of doing business, with almost all the secrets and secrets.
Secondly, Toyota is one of the best enterprises with well-established processes.
Third, Toyota is a Japanese company with a very different corporate culture. Japan has a different way of thinking that you cannot find in any country in the world.

In general, after reading the last page of the book, I was not relieved that it was finally over. There are a lot of useful points. It’s hard to say whether it’s possible to apply them in Russian business conditions. Although nothing is impossible - take it and do it.

Useful points from the book “Toyota Corporate Culture.”

What did you really find in the book? And it was possible to identify the main principles of the enterprise. There are fifteen of them and I will be happy to voice them.

You made a mistake - admit it.
A company employee is the basis of the entire internal culture of the enterprise (moreover, his position does not matter, be it an assembler, a foreman, or a cook).
The goal of the company and its employees is long-term joint well-being.
People are the only asset of a company that only increases in value from the time it is acquired.
Toyota employees are hired for life.
A very strict, multi-stage personnel selection system.
An effective system for adapting and training your employees.
The focus and support of staff is provided both on and off the job.
The key unit of Toyota's organizational structure is the group. Working in a company is a team game. There can be no individuality.
The basis of the company's activities is the safety of employees at work.
Communication and more communication. Within a department, between groups, between a group and management. Moreover, communication is both outgoing (when the manager voices tasks) and incoming (when the employee reports and demands something).
A manager and a leader are two different things. At Toyota, they hire and develop leaders who become managers.
Career growth of managers occurs slowly, but at the expense of internal employees, and not attracted from outside.
Toyota's lean manufacturing culture is at its core. This is precisely the culture that has been introduced and applied for decades. In fact, this is the philosophy of the company and its leaders.
Continuous improvement. No matter what results are achieved, we cannot stop.

These are the principles at work at the Toyota car production plant. Whether they are applicable to us - anything is possible. They work at Toyota and are quite successful.

This is where I’ll probably end my brief review of the book “Toyota Corporate Culture.” Read, improve yourself and good luck to everyone.