Contradictions

that drive
Toyota’s
success .

Presented by:
DAOUD MOUSSA
IBRAHIM WALI
SEIF ABDOU
ABDILLAHI KARSHE
SAIFFUDIN
 Introduction
Generally each company have two main innovations which are very useful and represent necessity to
keep track with any transformations or new situations. These innovations are namely called 'hard'
innovation which allows the company to keep improving the way it manufactures vehicles and a 'soft'
innovation which relates to corporate culture. Toyota succeeded because it creates contradictions and
paradoxes in many aspects of organizational life.
What are these major contradictions?
•Toyota moves slowly, yet it takes big leaps.  Example: gradual opening of factories overseas, and the
leap of the Prius.

•Toyota grows steadily, yet it is a paranoid company.  Example: Steady growth but a culture of "there
must be a better way.“

•Toyota's operations are efficient, yet it uses employee's time in seemingly wasteful ways.  Example:
Toyota meetings have on average more people than other companies.

•Toyota is frugal, but it splurges on key areas.  Example: reputation for spartan offices but $22 billion
spent on factories and $170 million spent on Formula One racing. 

•Toyota insists internal communications be simple, yet it builds complex social networks.  Example:
simple A3 reports for displaying data and projects, yet company-sponsored clubs for every
conceivable social niche.

•Toyota has a strict hierarchy, but it gives employees the power to push back.  Example: employees
believe they add value by giving bosses constructive criticism.  More on this later.
 Success

Forces

3 Forces of 3 Forces of
Expansion Integration

Human-centered
Company
 3 Forces of Expansion

 Setting impossible goals. E.g In 1937, the founder, Kiichiro Toyoda, wanted
to produce automobiles in Japan without using foreign technology.

 Customizing products and operations to the level of consumer

sophistication in each country.

 Experimentation. Toyota organizes experiments using strict routines, as is

widely known. It has refined Plan-Do-Check-Act (PDCA), the continuous
improvement process used throughout the business world, into the Toyota
Business Practices (TBP) process.
 3 Forces of integration

 Preserving the values of the founders

Tomorrow will be a better day
Everybody should win
Genchi Genbutsu (have you seen it yourself - go to the source)
Customers first, dealers second, manufacturing third

Up-and-in people management: you don't need to move up to succeed employees are given
the chance to participate in every meeting or decision making.

Open communication

Disseminate knowledge laterally

Give people the freedom to voice contrary opinions
Frequent face-to-face interactions
Make tacit knowledge explicit
Create support mechanisms
 Characteristics of Toyota
executives.

■ Willingness to listen and learn

from others

■ Enthusiasm for constantly

making improvements

■ Comfort with working in teams

■ Ability to take action quickly

to solve a problem

■ Interest in coaching other

Employees

■ Modesty
 Conclusion

Emulating Toyota isn’t about copying any one practice; it’s about creating a culture.
That takes time. It requires resources. And it isn’t easy.

First, companies have no choice but to embrace contradictions as a way of life. Most
enterprises stop growing because they stick to processes and practices their past
successes have generated. However, old methods also lead to institutional rigidities.
Companies can overcome them by trying to reach new markets or by tackling fresh
challenges.

Second, companies must develop routines to resolve contradictions. Toyota uses

numerous tools such as the Plan-Do-Check-Act model, the eight-step Toyota Business
Practices process, the A3 reporting system, and the widely known ask-why-five-times
routine. Unless companies teach employees how to deal with problems rigorously
and systematically, they won’t be able to harness the power of contradictions.

Third, companies must encourage employees to voice contrary opinions.