Toyota takes lead with 'Lean Leadership'

MUCH has been said about The Toyota Way - the car manufacturing company's leadership philosophy.

It always worked for Toyota in the past and some say now, it's helping them through arguably one of the toughest times for the company in the past 20 years.

Maybe this old philosophy is still worth a look. After the 2010 recall debacle, this year was supposed to be a better year for Toyota. But then disaster struck.

The massive earthquake in Japan created a dearth of auto parts, which led to a reported 33percent sales fall.

The company's market share last month was 10,2percent, a 4,6percent drop from the year before. Toyota US group vice president, Randy Pfluhaupt, said May and June would be "low points".

But somehow the company has bounced back, with Toyota president, Akio Toyoda, announcing recently that production lines will reach 90percent of normal volume by the end of this month.

He said that Toyota will be at full production levels again by November.

At the same time, the company's expansion into developing countries has seen engineering centres set up in Africa, Middle East, and Latin America.

One report said that 40percent of Toyota's new vehicles are sold in developing countries. The company has been South Africa's brand market leader for three decades and Johan van Zyl, chief executive of Toyota South Africa Motors, said in a report that it plans to be "number one for as long as possible".

Whatever it is they do at Toyota, company leaders around the world are obviously very confident in the organisational culture and process.

Toyota Kenya managing director Hylton Bannon said the confidence comes from the belief in Toyota's internalised "lean leadership" principles.

"I have applied the lean leadership principles in eight different countries around the world over the past 12 years," he said.

And those at UCT Graduate School of Business must agree with him because the school has invited Bannon to design and deliver a course that takes the principles of lean leadership to executives from September 19 to 21.

"Lean leadership's strongest trait is that it allows for the fastest response to a problem.

"Problems are solved every second, every hour of the day," said Bannon. And, it isn't limited to supply chains and shop flows.

He said that the lean leadership approach relies on the continuous improvement of processes, paired with respect for people, no matter what their position within the organisation.

  • For more information about the Lean Leadership executive education course running in September at the Graduate School of Business contact Mario Pearce on 021-406-1268 or visit www.gsb.uct.ac.za

Would you like to comment on this article?
Register (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.