The Toyota Way to Lean Leadership: Achieving and Sustaining Excellence through Leadership Development Reviews
The Toyota Way to Lean Leadership: Achieving and Sustaining Excellence through Leadership Development
The missing link to long-term Lean success! Despite the fact that companies worldwide have adopted Lean production, none has sustained the same levels of excellence as Toyota. Why? Leadership. In The Toyota Way to Lean Leadership, Jeffrey Liker and Gary L. Convis, a former executive V.P. and managing officer of Toyota, help executives and senior managers get employees to refocus their efforts–from simply performing their singular function to continuously improving in collaboration across the organization. Case studies from Toyota clearly illustrate the methods that create powerful, effective Lean leadership. Jeffrey Liker, author of the popular Toyota Way books, is the acknowledged expert on Toyota processes. He is professor of Industrial and Operations Engineering at the University of Michigan. After his executive leadership at Toyota, Gary L. Convis became the CEO of Dana Holding Corporation, a .1 billion supplier to the global automotive, commercial vehicle, and off-highway marke
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Leadership is the key to innovation and quality improvement in process,
1. When customers drive Toyota, the gemba is how they are using the product and what works for them. Gemba means observing firsthand how products are designed, build, used, and problems occurring.
2. Respect for other people means you feel the pain of critical feedback
3. “Show us the bad news first”, if we do not give people accurate feedback based on real behavior they are not growing and we are not respecting. The leader must put people in positions to work hard and succeed.
4. The root cause of many lean system failing is lack of adequate leadership.
5. Toyota faced three crisis between 2007 and 2011 testing self reliance: a) the lexus crash, b) 12 vehicles with slightly sticky brakes and less than perfect pedal acceleration control c) and a Great recession resulting in a surge in steel prices.
6. In 2008, large suv sales dropped 40% resulting in greater supply than demand. Toyota responded by reducing production. Overproduction creates excess inventories and wastes valuable capital that could be used for growth or future expenditures. Toyota did not layoff employees but, instead, focused on leadership training, kaizen. Toyota trimmed excess spending by cut bonuses and temp labor and overtime.
7. The 110 mph Lexus crash was linked to an “all weather floor” shifted blame to a dealership, who failed to secure the mat with clips too hold it in place.
8. Next, the sticky brake pedal was determined “not be defect”. Ray LaHod said “The verdict is in. There is no electronic-based cause for unintended high-speed acceleration in Toyotas. Period.” 12 pedals out of 2 million vehicles were discovered. However, vehicles were recalled because Toyota puts safety as a premium value.
9. In 2011, the Japanese 9.2 earthquake caused a 50 ft tsunami to strike Japan’s east coast. Small car production of Yaris, Scion, XB, and Scion xD were impacted by the earthquake. Many of the basic raw materials its suppliers depended came from the north near the epicenter of disaster. 500 parts were identified as not procurable. 100s of Toyota engineers went with equipment vendors too solve problem for the suppliers, affected by the earthquake. By utilizing employee creativity and know how, in three months, the unavailable part count fell to 30 and from Mar 2011 too June 2011, Toyota was able to put most of its companies in full production.
10. Toyota identified problems that lead to failure to respond quickly and appropriately in a growing crisis to customer concerns. Time between was examined: time between when a customer called with a concern and when Toyota responded with a design change or a recall; time between a NHTSA complaint or media attack and a Toyota response.
11. Did Toyota bridge the perception gap between North America Executives and Japanese Executes? One of the clear failures was critical decision were being made by leaders who were not at the gemba. Toyota had failed to seriously listen to customer perceptions of features of North America executives in engineering, sales, and communication. The gemba leaders had a better understand of the perceptions and problems of perceived failures of quality and safety. The further away from gemba, the poorer the decisions will be made. Why were executives and engineers removed from gemba making the decisions about information to be released?
12. Customers were concerned about adaptive cruise control accelerating their cars. Leaders had to go and see the problem.
13. In 1997, Toyota learned and began to practicing having two suppliers of a critical part, in at least two geographical areas.
14. Akio toyoda talked to people and did not appear aggressive. He said, “I was thinking about the dealers, and customers, and suppliers, and our US colleagues in Toyota”. Toyoda did not blame customers, the government; instead he, apologized for pain and inconvenience; and then set his company moving forward to uncover problems and solve them. Toyoda message and feelings emphasize his commitment to respect partners and suppliers and help them improve.
15. Toyota established a design quality innovation division reporting to the Vice president of Research and development, to bring customer complaints to the power project managers and open direct communication lines. Customer complaints needed to be resolved by engineering design.
16. Adaptive cruise control to avoid frontal collision can be shocking because the car automatically begins to decelerate. Does the Adaptive system save lives? Does it do a better job than a real driver at avoiding collision? Does the system make mistakes? Can the driver override the system, if a mistake occurs?
17. Toyota looks for root causes to problems. One concern I have had is hearing a North American Toyota executive say the company was position on brand.
18. Shu ha ri : novice, advanced beginner, competent, proficient, and expert. Shu…
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Just when you thought it couldn’t get better….,
It actually does! The latest in the Toyota Way series, the Toyota Way to Lean Leadership builds on existing themes and concepts from the previous books, while simultaneously adding new learning and perspectives. Like constant PDCA and Shu Ha Ri cycles, the Toyota Way to Lean Leadership gives the reader both a deeper and broader understanding of the role of leadership in creating and supporting all aspects of the Toyota Way. A great combination of factual information, stories about and from the development of actual Toyota leaders and clear diagrams, there is something here for everyone, no matter what their level of lean learning, or where they are in their lean journey. This book should be a must read for all leaders, and should be included in all leadership courses.
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Brilliant: a new breakthrough book on the Toyota Way,
This is another groundbreaking book, and I meant it. Those of us who’ve been involved with the Toyota Way and the lean movement for decades have known all along that it’s really about leadership – but not the kind of leadership you read about in leadership book. In reading Ohno, we can feel there is a special kind of leadership there. In reading about Sakichi, Kiichiro and Eiji Toyoda as well. The puzzle has always been that this is another kind of leadership, so hard to articulate and key to making the whole thing take off.
Jeff Liker and Gary Convis have cracked the code. Jeff’s insights into the Toyota Way are combined with Gary’s unique experience of living the Toyota Way and being taught by the old time senseis come together to present a truly different model of leadership to sustain thelean enterprise. It’s a model starting from self development, then coaching others, keeping a clear direction, and supporting kaizen until the big changes are possible. It completely turns the tables on two basic assumptions in modern business: 1) that the leader is hired because he or she already knows everything and needs to get other to execute and 2) that competence is hired in because it’s the employee’s personal responsibility to sharpen their skills outside the context of the company. If you feel that both of these assumptions are profoundly misguided but don’t know what do do about it? Read this book.
The Toyota way to Lean Leadership will blow you away and revolutionize how you see yourself as a leader: are you developing more leaders or more followers (I have to confess I personally failed that test earlier or and I’m trying to mend my wicked ways – but it’s real hard :)). This books opens up the way for a new kind of leadership where the emphasis is on learning by doing, and then teaching by doing. more than just a high level programme, the book also shares great stories about real life events, and practical help as how to go about it.
The first time I read it came away with the familiar feeling: I am the problem, not all the others. Oddly, I’ve learned to like that feeling, because it usually signals a leap forward. This book has led me to reconsider how i look at lean and enterprises at large, and I am grateful to both authors for that gift. We know the puzzle inside out. Here’s the bit of missing code that’s the key.
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