Book: Toyota Kata

I started reading the book Toyota Kata by Mike Rother and I read the first three chapters so far. He argues that the world has only looked at the visible aspects of Toyota, the processes, methods and principles. He stated that you should not look at those aspects, because the real explanation what makes Toyota so special is invisible. He refers to way of thinking and the routines that are normal at Toyota: the Kata’s. This is a Japanese term, normally used in martial arts for patterns that are repeated again and again into perfection. The book describes two Kata’s at Toyota:

• The Improvement Kata
• The Coaching Kata

If you get past his slightly arrogant introduction that he finally figured the real secret out, he offers a number of rich insights. He explains quite well how organizations keep repeating the same mistake when they want to change something: they fall in the blind implementation mode. The consequence is that they try to make the change process as predictable as possible. We find it hard to accept the fact that organizational development is an inherently unpredictable process.

It is the art to release the urge to want to control what changes at what moment (I recognize that this can be difficult). It is the art to continuously adjust the direction based on new insights. In an implementation mode, there are unpredictable events and problems that distract you from your goal. But those unexpected events are always there. How many time is spend on making plans and how much time is spend on explaining why they are not implemented as planned?

A wise strategy would accept the inherent unpredictability of development processes and would seek strength in the adaptive capacity of the organization. You need some method that provides the needed confidence that good progress will be made. And that method is often lacking as one falls back into the implementation mode.

He states it is exactly the ‘Improvement Kata’ and ‘Coaching Kata’ that enable Toyota to adapt adequately. Rother described how Toyota makes improvement very specific in three conditions:

Toyota in trouble

Last week Toyota announced their unprecedented worldwide recall of millions of cars. What does this mean? Is this a sign that the Toyota Production System does not function well after all? Should we be more critical of lean thinking?

I think that Toyota is indeed in trouble and suffers a fundamental problem in their quality system. This can also be deducted from the statements Toyota itself makes. Aiko Toyoda, grandson of the founder of Toyota and CEO since 2009, stated recently:

"Toyota is no longer a winner"

What happened? What can we learn from this? Recently Takeshi Uchiyamada, vice-president of Toyota and responsible for research and development recently, stated that Toyota has been:

"thinking of market share first and only then of the development of products"

Earlier, in October, Aiko Toyoda went even further in an interview. He stated:

"Toyota is a step away from capitulation to irrelevance or death. The company is grasping for salvation."

Until the end of the last century Toyota was known for the extraordinary way they were able to think from the customers point of view. Somewhere in the beginning of this century this has shifted towards becoming  the biggest car manufacturer in the world. In 2008 they achieved this (they sold more cars then any other car manufacturer), but now it seems at the expense of the quality system. A conclusion could be that the principles and instruments only work if your main focus is not market share or profit. They only work if you truly think from the point of view of the customer (or in healthcare from the point of view of the patient) en really focus on quality from a long term perspective.

As noted by John Shook, it' makes sense to distinguish between the Toyota Production System (TPS) and Toyota's production system. TPS are the principles and methods that Toyota developed over the years and until recently Toyota has been world class in applying them. Toyota's production system however has declined recently because of loosing the core values that made the company special. That does not make TPS less powerful, but it does mean that we should look differently towards current Toyota for inspiration.

The statements of Toyota give confidence that the top level acknowledges the extend of the problems and that they are already working on going back to the core values. If they manage to achieve this, it will certainly be interesting to study and learn from how they become world class again.