The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer
Jeffrey k. Liker
McGraw-Hill, 2004
In The Toyota Way, Jeffrey Liker gives us an inside look at Toyota's unique culture. He writes: "Lean thinking [...] involves a far deeper and pervasive cultural transformation than most companies can begin to imagine." The purpose of the book, he states, is "to explain the Toyota culture and the principles it is based on." In other words, what makes Toyota tick?
The book is divided into three parts. The first part, titled The World-Class Power of The Toyota Way, shows how the Toyota Production System evolved and briefly introduces the fourteen management principles that the author identified in his study of Toyota. We learn about the founding of the Toyota Motor Company, and how Kiichiro Toyoda discovered the just-in-time principle. In 1948, Toyota's debt was eight times its total value. When The Toyota Way was published this year, Toyota's market value exceeded that of GM, Ford, and Chrysler combined. It's the kind of observation that makes you want to read more.
In the second part of the book, The Business Principles of The Toyota Way, Liker discusses the way that Toyota is managed in some detail. Having spent 20 years studying Toyota, he is able to provide a wealth of educational examples. The ideas discussed include: the importance of thinking long term, creating clarity so problems are quickly spotted, growing leaders who can mentor others, helping partners improve, verifying facts first-hand, and using relentless reflection to become a learning organization.
Mindlessly copying Toyota will not work, but there is much that companies can learn by studying Toyota, no matter what industry they themselves are in. In the third part of the book, Applying The Toyota Way in Your Organization, Liker provides practical advice for companies that would like get started with Lean. He recommends mapping the "macro value stream" to quickly get one's head around how the business works. Liker recommends starting with value stream pilot projects to demonstrate practical value before rolling out heavyweight of classroom training programs. Process change, he writes, must quickly be followed by cultural change. Outside consultants (sensei) are recommended for getting quick initial results, but for Lean to become a way of life, it must become part of the skill set of all managers and employees.
The Toyota Way should be mandatory reading for executives interested in Lean. The author clearly shows how Lean is much more than a set of process and product engineering tools, it is a revolutionary way of thinking about business.
About the author
Frode L. Ødegård is the founder and CEO of the Lean Software Institute. He has more than twenty years of experience as a software entrepreneur and trusted advisor to high-tech executives. Organizations he has helped include Sony Electronics Inc., Lockheed Martin, Candle, Conexant Systems, Mindspeed, and Plantronics. Frode is currently writing a book on using Lean to transform the way software enterprises are designed and managed.
