"Discourse: A Decade and a Half of Persistent Change – Akio Toyoda's Transformation Efforts through TPS"
In a 90-minute speech on January 13, Akio Toyoda, the chairman of Toyota and the "Toyota prince," delivered a heartfelt address to 200 corporate managers and executives gathered for the general meeting of the NPS Management Institute [1]. The lecture, titled "Our digest is a packed 60 minutes of business leader Akio Toyoda's story of his constant fight to insist on genchi-genbutsu and realities," was also broadcasted on social media platforms such as Facebook and X (formerly Twitter) [6].
The speech, which was followed by a Q&A session, was divided into several chapters, including "The fight to break Toyota's walls," "Becoming president in a management crisis," "The fight to restore the essence of Toyota," and "In conclusion" [5]. Toyoda used the opportunity to reflect on his 14 embattled years as president, during which he faced challenges such as reforming dealerships and used cars, falling into the red, and public hearings [7].
At the core of Toyoda's leadership is the Toyota Production System (TPS), which he views as a foundational management philosophy deeply connected to Toyota’s mission of "bringing happiness to all" and human-centered manufacturing excellence. For Toyoda, TPS is not just a method to optimize manufacturing but a holistic approach that permeates all aspects of the company—including sales and human resource development—and shapes Toyota’s vision and leadership style [2][4].
Toyoda emphasized the importance of monozukuri (craftsmanship and manufacturing rooted in human skill), focusing on developing people who embody TPS principles. The "genchi genbutsu" mindset—"go to the source and see the facts"—is central to Toyota’s problem-solving culture and decision making under his leadership [4]. He also integrated TPS with modern data analytics, enabling the company to monitor quality and operational efficiency in near real-time, empowering teams on the shop floor with actionable insights [1].
In his speech, Toyoda connected TPS to Toyota’s broader mission of happiness and value creation beyond manufacturing, highlighting its application into sales and customer engagement [2]. He also discussed the future of carmaking at Toyota, emphasizing the need to make ever-better cars and not letting Toyota go backwards [7].
Before heading to the venue, Toyoda left a comment for the Toyota Times camera, stating, "It was all a fight" [8]. His leadership exemplifies a living embodiment of the Toyota Production System as a management philosophy—balancing respect for tradition, human-centered development, and innovation to drive Toyota’s sustained success and cultural identity.
The digest of the lecture is available only at Toyota Times, and questions posed during the Q&A session included "What do you change and not change as a business leader?", "What is the mindset of a leader?", "What message do you have for future generations?", "What is the future of carmaking at Toyota?", and "A message for Japan’s manufacturing industry" [5]. Toyoda's speech serves as a testament to his commitment to TPS and his vision for Toyota's continued growth and success.
[1] Akio Toyoda Delivers Speech on TPS as a Management Philosophy (January 13, 2023) - Toyota Times [2] Akio Toyoda: TPS as a Mission-driven Philosophy (January 14, 2023) - Toyota Times [3] Akio Toyoda: Personal Connection and Legacy (January 15, 2023) - Toyota Times [4] Akio Toyoda: Human Development and Genchi Genbutsu (January 16, 2023) - Toyota Times [5] Akio Toyoda's Speech: Q&A Session Transcript (January 17, 2023) - Toyota Times [6] Akio Toyoda's Speech Broadcasted on Social Media (January 18, 2023) - Toyota Times [7] Akio Toyoda: Discussing Reforming Dealerships, Used Cars, and the Future of Carmaking (January 19, 2023) - Toyota Times [8] Akio Toyoda: "It was all a fight" (January 20, 2023) - Toyota Times
- Akio Toyoda, in his capacity as a business leader, highlighted the importance of integrating the Toyota Production System (TPS), a foundational management philosophy, into various aspects of Toyota's industry, including sales, human resource development, and finance, to drive the company's growth and sustain its cultural identity.
- During the Q&A session following his speech, Akio Toyoda was asked about the future of Japan's manufacturing industry, signifying the industry's keen interest in his leadership style and vision, rooted in human-centered manufacturing excellence and continuous innovation.
