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Akio Toyoda is on the hot seat. Reportedly, he is a forward-thinking guy who is intent on bringing the legacy of the family to the design of the future of the company. Unfortunately, CEO Toyoda is being tested beyond that of any of his recent predessors. Toyota is in trouble…in the market for cars…in the financial markets…and as as model for managing companies.

Last week I was speaking with Norman Bodek, Godfather of Lean, about Taiichi Ohno and Shigeo Shingo for my up-coming book. Norman knew both of them. He was their English-language publisher and he introduced 100s of people to them on his more than 75 study missions to Japan. I had just finished my weekly staff video conference where our consultants lamented that Toyota must have lost their way. I asked Norman what he thought.

Confront this reality: Electronic hardware and software is not bug free.The conventional wisdom about Toyota's quality issues is that they got distracted while pursuing a goal to be the world's largest car company. Norman didn't think they were ever pursuing that as a goal. At one time Toyota's CEO Watanabe predicted that it would happen, but it was never the goal. Yet, we can't ignore their rapid expansion into many new markets across the world. Norman speculated that too many of Toyota's managers of today weren't influenced by Engineer Ohno and Dr. Shingo.

Another contributing factor is the complication in today's vehicles. I read an article in the last week that said there are upwards of 100 computer chips controlling everything from emissions and speed to real-time fuel economy and handsfree cellphone capability. All that hardware requires software. Programmers will tell you that no software is bug free. Ever see the Windows blue screen of death?

One of my good friends wrote a short note to me this morning asking,

"WTF is up with Toyota? How did this happen? I thought they set the standard for quality control?"

Great questions. My answer:

"It's not as bad as Secretary Ray Lahood and the media have made it.
"It's worse than anything that has happened before at Toyota.
"Toyota's solution to the sticking accelerator is elegant.
"It took Toyota way too long to put the pieces together to get there."

It's the same question my colleagues have been asking me. I haven't known how to answer any of them until this morning. Today, something clicked.

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Read the rest of What Is Going on with Toyota (422 words)

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Post tags: Akio Toyoda, Norman Bodek, Shigeo Shingo, Taiichi Ohno, Toyota

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