"After two weeks of unveiling his plan, Akio discusses the revival strategy for the organization"
In a groundbreaking move, Akio Toyoda, Chairman of Toyota Motor Corporation, convened a dialogue with 80 frontline leaders from 20 Group companies on February 12. The event, held at a training facility in Gamagori, Aichi Prefecture, marked Toyoda's commitment to "lead the transformation" of the Toyota Group.
The dialogue was open to leaders of all stripes, regardless of qualifications, age, or gender. Toyoda's approach reflected his belief that roles, not titles, should define a person's work within the company. This philosophy is rooted in Toyoda's hands-on leadership style, which has been a cornerstone of his tenure as CEO and later Chairman.
Toyoda's mindset was shaped by a blend of honoring the family legacy, staying closely connected to operational realities, fostering teamwork and innovation, and proactively steering Toyota through technological and market transitions. As the great-grandson of Sakichi Toyoda, the company's founder, Toyoda emphasizes safeguarding the Toyota DNA passed down through generations, which values quality, persistence, and innovation.
Toyoda's daily routine involves early mornings reviewing comprehensive reports on company performance and feedback from customers, dealers, and employees. This deep connection to frontline operations reinforced his customer-centric mindset and commitment to quality and reliability. He regularly held morning meetings with executives that fostered an open environment for diverse opinions and ideas, driving innovation in a competitive industry and reflecting his belief that diverse perspectives improve decision-making.
Recognizing emerging challenges, Toyoda established Toyota’s Digital Transformation Promotion Department to modernize the company by integrating advanced software capabilities, showing his awareness of the need to evolve amid shifts towards electric and software-driven vehicles.
Toyoda joined Toyota mid-career, having worked in investment banking in the U.S. and U.K. for about two years and then at a consulting firm. Despite being the president's son and having the Toyoda name, Toyoda felt alone when joining Toyota. People were conscious of dealing with the founding family and didn't want to be firm with him for fear that he would go running to his father.
However, Toyoda's leadership style quickly proved his worth. He worked on a Crown model change as part of the Plant Administration Division at the Motomachi Plant, an experience instrumental in instilling the concept of genchi-genbutsu in him. This principle, meaning "go and see for yourself," emphasizes the importance of direct observation and personal involvement in problem-solving.
Chairman Toyoda's advice during the dialogue focused on the individual concerns of those on the front lines. He emphasized the importance of finding happiness in one's work, stating that those who cannot find happiness in their current job may never find happiness. No experience is pointless, according to Toyoda; what one takes out of an experience is up to them.
Attendees from Toyota included the head coach of the women's basketball team and recent graduates from the Toyota Technical Skills Academy. The best way for people to get by was having nothing to do with Chairman Toyoda, a testament to his humility and commitment to fostering an environment where everyone feels valued and heard.
The idea for the dialogue originated from a January 30 vision briefing. Chairman Toyoda commented on the difference between Toyota Motor and other companies, stating that their work should revolve around roles, not titles. He advised that those who cannot find happiness in their current job may never find happiness, a poignant reminder of the importance of finding purpose and fulfillment in one's work.
In conclusion, Akio Toyoda's leadership at Toyota Motor Corporation is defined by a blend of honoring the family legacy, staying closely connected to operational realities, fostering teamwork and innovation, and proactively steering Toyota through technological and market transitions. His commitment to genchi-genbutsu and customer-centricity, coupled with his humility and approachability, make him a unique and effective leader in the automotive industry.
- Akio Toyoda, in his capacity as Chairman of Toyota Motor Corporation, emphasized the importance of roles over titles in guiding the transformation of the Toyota Group, which extends to finance, business, and leadership within the company.
- During the dialogue with frontline leaders, Toyoda, having worked in investment banking before joining Toyota, shared his belief that diverse perspectives can improve decision-making, thereby emphasizing the role of leadership in fostering an inclusive business environment.
