Friday, April 1, 2011
Toyota: Touching the perfection the hoshin kanri way
"The thieves may be able to follow the design plans and produce a loom. But we are modifying and improving our looms every day." - Kiichiro Toyoda, the second president of Toyota Motor.
As of 2010, Toyota Motor was ranked 5th among Fortune 500 companies. This is not a fluke. Many automotive manufacturers believe that by simply deploying slanting methodologies will make them as successful as Toyota. What they do not understand is that Toyota is where it is as they employed the discipline of "hoshin kanri" the right way. In the "hoshin kanri" way or we can say the "hoshin planning" way, a firm formulates a strategy that focuses on having a common goal, communicating it effectively to the leaders & other major stakeholders and most importantly having tasks and responsibilities effectively distributed among the participants. Toyota has over the years effectively involved all leaders and senior management in working towards the same objective.
As discussed in class, Toyota has maintained its stance of "touching the perfection" by formulating a strategy that focuses on its own strengths rather than the on some widespread standard industry benchmarks or myths.
This statement by Hiroshi Okuda, the eight president of Toyota Motor summarizes the mission of Toyota Motors
"We wish to make Toyota not only strong, but a universally admired company." -
REFERENCES: 1: A Fresh Look at Industry and Market Analysis (Slater and Olson, Business
Horizons, January-February 2002)
2: Going From Global Trends to Corporate Strategy (Becker and Freeman, The
McKinsey Quarterly, 2006 Number 3)*
5: Hoshin Kanri from Wikipedia