Toyota corporate culture - vehicle for change
I am not alone in my belief that companies are capable of taking on heroes’ quests and be leaders in re-fashioning our global age. The magazine Fast Company in their March 2009 issue comes up with a list of 50 innovative companies …”that will re-define our future and point the way for a better tomorrow.” # 48 on their list is Toyota Motor Company which I investigated recently as I wondered what in their corporate culture put them on the path of mass producing fuel efficient cars so far ahead of their peers in the automotive industry.
And what did I find? - another company culture with a long-standing “win-win belief” that what is important for the common good can be good for business. In searching their company history on-line, I found the following statement describing the personal beliefs of the 19th century father of the founder of Toyota.
…Sakichi (Toyoda)…believed that he owed his success to the world at large and that it was important that Toyota be of service to humankind by working in good faith, not purely for monetary gain…
It is usually possible to track these kind of fundamental beliefs over time within companies in the writings of its leaders and how the company describes itself and what it values. And yes, here is the same belief articulated today in a Message from Top Management.
…Under Toyota’s Guiding Principles, we practice openness and fairness in our corporate activities, strive for cleaner and safer car making, and work to make the earth a better place to live…
Now I have read many books on the histories of companies and read many an annual report, but Toyota does seem to be “walking its talk,” and using a traditional strategic belief to guide its business planning decisions. Essentially, it was easier for Toyota to mass produce fuel efficient cars before its peers, because it was naturally supported by its corporate culture - to think long-term and find ways to build its business while serving the common good.
This strategic belief has served Toyota well as it is now the world’s top-producing automaker, albeit suffering losses today like the rest of us and most likely not perfect in every way. It is also an example of a hero company with a “win-win cultural belief” that can lead in the re-fashioning of the fundamentals of our global economy.
