Two weeks post his unveiling of a rejuvenation plan, Akio discusses reorganizing the company.
Toyoda Emphasizes Leadership and Innovation in Toyota's Transformation
Akio Toyoda, the Chairman and CEO of Toyota, has a unique leadership style that has been shaped by his personal commitment to responsibility, innovation, and driver engagement. His tenure at Toyota has seen him navigate global crises, champion motorsport, and advocate for a personal entrepreneurial spirit.
As Group Chairman and CEO, Toyoda has emphasized decision-making accountability and the importance of guiding transformation with a personal entrepreneurial spirit. This role required him to integrate Toyota’s legacy with new visions, including the company’s transition towards electrification and innovation across its global group [1].
Toyoda's passion for driving and motorsport is evident in his work. As a champion of driver-focused cars, he has been personally engaged in the development of sporty models like the GR series. His experience leading Toyota’s racing efforts has instilled a mindset that values performance, diversity in energy sources, and pushing technological boundaries beyond prevailing industry trends [3].
Toyoda's leadership style is also influenced by his hands-on experience managing the company through global challenges. Under his leadership, Toyota has faced and adapted to complex global crises, including economic and supply chain disruptions. This experiential background has contributed to a leadership style focused on resilience, adaptation, and long-term innovation rather than short-term trends [3].
Toyoda's teachings and lectures about the Toyota Production System demonstrate his belief in continuous improvement (kaizen), respect for people, and lean management principles—important cultural and operational mindsets influencing his decisions [1][2].
On February 12, Chairman Toyoda hosted a dialogue with 80 frontline leaders from 20 Group companies at a training facility in Gamagori, Aichi Prefecture. The purpose of the dialogue was for Chairman Toyoda to fulfill his pledge to "lead the transformation" of the Toyota Group [4].
Chairman Toyoda's perspective is that those who can't find happiness in their current job may never find happiness. He believes that no experience is pointless, and what one takes out of it is up to the individual [5]. His first posting was at the Motomachi Plant, where he instilled in himself the concept of genchi-genbutsu, emphasizing the importance of people close to the products and the genba having a voice [6].
Chairman Toyoda joined Toyota mid-career after working in investment banking in the U.S. and U.K. for about two years and in a consulting firm. Despite his family background, people were cautious in dealing with him when he first joined Toyota [7].
The idea for the dialogue originated from a vision briefing on January 30. The dialogue included leaders of all stripes, regardless of qualifications, age, or gender [8]. Chairman Toyoda's first posting was at the Motomachi Plant, where he learned about the people he would meet, the skills and conduct of that discipline, and the experience needed to be recognized as a professional [9].
In his early days at Toyota, Chairman Toyoda worked on a Crown model change as part of the Plant Administration Division [10]. Despite the cautiousness of his colleagues, Toyoda was determined to prove his worth and make a positive impact on the company.
References:
[1] Toyota Global - Toyota's Journey to Sustainable Mobility: https://global.toyota/en/company/sustainability/sustainability-report/2020/report/chapter3_2.html
[2] Toyota Production System Support Center: https://www.toyota-global.com/what/tpssc/
[3] The Guardian - Akio Toyoda: 'I'm not just the boss, I'm a Toyota man': https://www.theguardian.com/business/2014/jul/06/akio-toyoda-toyota-boss-interview
[4] Nikkei Asia - Toyoda vows to lead Toyota Group's transformation: https://asia.nikkei.com/Business/Motoring/Toyoda-vows-to-lead-Toyota-Group-s-transformation
[5] The Japan Times - Toyoda vows to lead Toyota Group's transformation: https://www.japantimes.co.jp/news/2021/02/12/business/toyoda-vows-to-lead-toyota-group-transformation/
[6] The Japan Times - Toyota's Akio Toyoda: 'No one wants me working under them': https://www.japantimes.co.jp/news/2015/03/20/business/toyotas-akio-toyoda-no-one-wants-me-working-under-them/
[7] The Japan Times - Toyota's Akio Toyoda: 'No one wants me working under them': https://www.japantimes.co.jp/news/2015/03/20/business/toyotas-akio-toyoda-no-one-wants-me-working-under-them/
[8] Nikkei Asia - Toyoda vows to lead Toyota Group's transformation: https://asia.nikkei.com/Business/Motoring/Toyoda-vows-to-lead-Toyota-Group-s-transformation
[9] The Japan Times - Toyota's Akio Toyoda: 'No one wants me working under them': https://www.japantimes.co.jp/news/2015/03/20/business/toyotas-akio-toyoda-no-one-wants-me-working-under-them/
[10] The Japan Times - Toyota's Akio Toyoda: 'No one wants me working under them': https://www.japantimes.co.jp/news/2015/03/20/business/toyotas-akio-toyoda-no-one-wants-me-working-under-them/
Akio Toyoda, the Chairman and CEO of Toyota, Steered the company's transformation with a focus on financial decision-making, integrating Toyota's legacy with new visions and innovations in the business sector, including the company's transition towards electrification and going beyond prevailing industry trends.
In order to lead the transformation of the Toyota Group, Toyoda involved leaders from various areas of the business, emphasizing the importance of personal entrepreneurial spirit and guiding the group towards long-term innovation, prompting a dialogue at a training facility in Gamagori, Aichi Prefecture.
