The Toyota Way

Toyota is not just a leader in the automotive industry; it is also influential in the world of business management. "The Toyota Way," as it is called, is the set of principles and leadership techniques that Toyota uses throughout its global operations.

Here are the fourteen principles (from the book The Toyota Way: 14 management principles from the world's greatest manufacturer, available for preview at http://books.google.com/books?id=9v_sxqERqvMC&lpg=PP1&ots=g6SVeCsLKA&dq=The%20toyota%20way&pg=PA1#v=onepage&q&f=false):

1. Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals.
2. Create a continuous process flow to bring problems to the surface.
3. Use "pull" systems to avoid overproduction.
4. Level out the workload (be the tortoise, no the hare)
5. Build a culture of stopping to fix problems and get quality right the first time.
6. Standardized tasks and processes are the foundation for continuous improvement and employee empowerment.
7. Use visual control so no problems are hidden.
8. Use only reliable, thoroughly tested technology that serves your people and processes.
9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others.
10. Develop exceptional people and teams who follow your company's philosophy.
11. Respect your extended network of partners and suppliers by challenging them and helping them improve.
12. Go and see for yourself to thoroughly understand the situation.
13. Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly.
14. Become a learning organization through relentless reflection and continuous improvement.
    

I believe that these principles are a large part of Toyota's success. Despite the recent recalls and runaway RAV4s, Toyota remains the worlds number one automaker. In light of the recalls and evidence of Toyota trying to cover up the problem, some of these principles may seem a bit ironic. However, that in no way reduces their importance in explaining Toyota's success.

Many other business managers and supervisors have implemented the Toyota Way. These principles apply to any industry that seeks to have more effective management and long-term success.

Toyota has become an influential leader in the auto industry by following these principles. And by proving the success of these principles, they have become one of the most influential companies in the world, as more and more executives mimic the Toyota Way.

GM and other car companies should do themselves a favor and adopt these principles. Just don't ignore them when it's convenient, as Toyota did during the recall scandal. A runaway Camry is one thing, but a runaway Escalade would be even more frightening.