People had high expectation of him. 3. 2. 1 Background of Kaki Toyota Kaki Toyota is the grandson of Chicory Toyota. He spent seven years in the US studying college and his master degree. He joined Toyota in 1984. He was one of the top executives in Toyota. While he was an executive of Toyota, he built significant system to make Toyota more competitive. He set Toyota as his vision, a strong vision that can “make a unique contribution” to the company. His strong confident and forward-looking leadership had made him more impressive as a leader. (Northing 2008 & Tierce 2007) 4.
Toast’s crisis Since 2007, Toyota started to experience a downfall because of its serious car recalls. Several of their top-selling model vehicles were found with serious problem with the acceleration, steering malfunction, software glitches, and the brake system. However, the recalls of 2007 was not the most critical period for Toyota. In 2010 was the year when Toyota was hit with the most serious problem. Over millions of cars were recall around the world that year due to vehicle technical problems. This cost Toyota over 2 billion USED in repairing.
Aside from financial loses, Toast’s reputation was also tarnished from the public; particularly from Americans. (Patriots 2010) Not only did Toyota lose its automatic recommendation from consumer Report to his competitor Honda, its No. 1 status in average vehicle reliability also dropped to the fifth. . 1 Toast’s inadequate Crisis Response toast’s handling of the recall crisis has caused much criticism both in the USA and in Japan. ” Toast’s slow and inadequate response of the safety defects in its vehicles disappointed most of its American consumers.
The 2007 recall was actually a pre-crisis awareness to Toyota. It already showed a warning sign that Toyota might have a potential manufacturing problem. However, “Toyota corporate leaders failed to understand the pre-crisis to be a predecessor to an acute crisis, also failed to be transparent in the face of media scrutiny. ” He took o action to the pre-crisis and failed to face to the public for several weeks, lack of response when the crisis came. (Victor 2011 ) 4. 1. Lethe affect after the crisis exploded The below is the table of the views on Toast’s Leadership and Ethics during the Recall: Table 1. 1.
Prior to the recent Toyota Recall, what were your general views regarding the management/leadership at Toyota Motor Corporation? Impressive Very Good Neutral Below average Not Impressive 17% 32% 5% 4%2. In your opinion, how is the Toyota leadership handling the current Recall crisis? Very Well Satisfactorily Neutral Somewhat disappointing Very roll 5% 24% 33% 24% 3. Most of what Toyota leadership says about the Recall crisis is true. Agree Somewhat Agree Neutral Somewhat disagree Disagree 37% 33% 12% 4. Do you think that the Toyota brand will regain its former prominence in the auto industry? Definitely Probably Perhaps Probably not No 5.
In terms of public trust, how ‘Ethical’ do you feel that Toyota leadership’s actions and response to the Recall crisis have been? Very ethical Somewhat ethical Neutral somewhat unethical Very unethical 5% 25% 6. Has the leadership at Toyota been ‘Transparent’ during the Recall crisis? Very such Moderately Neutral Somewhat Not at all The table presents the results of the attitude survey towards to Toyota. This study was comprised from 72 college students of The University of West Florida in 2010. The result from item no. L shows that most of the respondents had very good perceptions of Toyota in the past.
However, base on item no. 2-4, has shows that the majority of the respondents presents an quite negative views toward to the management of Toyota leadership’s response to the recalls crisis. The last 2 items survey shows that opinion on Toyota leadership on ethical decision-making ruing the recall crisis was not particularly commendable. (Patriots 201 0) 5. Changes in Toast’s strategy and culture One of Toast’s successes can be accredited to its “Toyota war culture. However, the deep commitment of Toyota always stands to become top selling in auto sales and to reduce cost seemed to have produced “blind spots” for it.
Cooperate leader seemed to have lost Toast’s core values of “The Toyota Way’, a culture that emphasizes on “continuous improvement”, “quality at the source”, “empowered employees”, and “response to people”. Toyota always promised to e “customer focused”, however, they have blamed the main cause of these accidents to user errors. “Its slow communication also indicates violation of its own principles. ” Table 2 shows the comparison of “what Toyota promised” to “what Toyota did” in the past decade. (Anthony 2011) 5. Tablet- The gap between the promise and the practice What Toyota promised What Toyota did Customer Focus Suggested user error Kodak (quality at the source) Insufficient testing Anton (empowered employees) A strong push to be “number 1” Kamikaze (continuous improvement) Years of living with customer complaints Think long- ERM Fought recalls reducing expense Generic Sunburst (see for oneself) Ignored complaints Mishmashes (slow decisions with Poor decisions, wrong conclusions, did Consensus, consider all options) not consider other options Hansen (reflect) Quick to blame improper mats Long wait for design fixes Kamikaze (continuous improvement) 6.
Toyota tackles its challenge Since last year, Toyota has been facing a real threat due to its poor reputation, lost of trust from its worldwide dealers and customers. So, how can Toyota tackle this challenge in order to restore the trust and its great engineering reputation to he public? 6. 1 Toyota cooperate Leader’s strategic change In February of 2010, Toyota cooperate leader Kaki Toyota testified in front of the US congress about Toast’s safety defects in its vehicles and the large-scale of recalls decision. He apologized for his company s handling of a series of safety scandals that led to the massive recalls.
He also promised to continue the company’s traditional priories of putting safety first, second as quality and the third of volume. (Greenmail 2010) After his testified in U. S. Congress, he proposed a list of areas of improvement and made some changes to them. 1. Engineer One of the changes he created was letting more engineers to check the work of vehicle project teams by adding four more weeks of time to the vehicle department. He also changed the structure of the management to hierarchical setup. “Toyota is inserting a level of low-tie managers in charge of smaller team. This can help to improve the mentoring skill for younger engineers and provide more management experiences for senior engineers. It can also benefit each engineer in the company. (Mark 2011) 2. More authority to Regional “For US made Vehicles, we would provide date, but Japan will do the engineering analysis. Now, we do the analysis ourselves, talk to the customers, and do the evaluations. ” Said by SST. Angelo, Toast’s quality chief officer in US. Today, sales regions are give more local authority by assigning more local executives into North American Regional.
The staffs from top executives in sales, engineering and manufacturing of Toyota US regional group would meet monthly to share their data of potential quality glitches. This global group meeting can bring people together to work as a whole; it also can help better the quality control. (Mark 2011) 3. Better communication Mr.. Toyota has set up a “Business Reform Kamikaze (Improvement) Department” in helping to improve internal and external communication. Whether it is safety issue, global crisis, customer complaints, dealer service query, or just a blob posting, it will provide a speed trend and a detail root-cause analysis.
Therefore, Toyota would be more capable in dealing with these issues or problems in the future. This can help build a better communication through the inside of the company and to the outside of the world. (Anthony 2011) 4 “Smart” Team Another initiative from Toyota is the set up of the Swift market Analysis Response Teams, known as “Smart”. The team is set up for troubleshoot issues. They investigate thousands of complaints and responsible for tracking down “safety’ for the company. (Wall street Journal 2011) This may help to prevent safety defects in the future. 5. New Partnership Toyota Motor Corp.. ND Microsoft Corp.. Have announced that they would invest 1 billion yen into the Toyota Media Service Co. Their strategic partnership’s goal is to build a “global platform” on Toyota Motor Corp.. ‘s next generation telecommunications and its vehicles information technologies on the “Window Azure platform”; also to create a new link between people, vehicles and management systems in the future, brings everything connection together. “This new partnership between Microsoft and Toyota is an important step in developing greater future mobility and energy management for consumers around the world.
Creating these more efficient, more environmentally advanced products will be our contribution to society. ” Said Kaki Toyota, CEO president of Toyota Motor Corp.. (Anonymous 2011) 7. Kaki Today’s new vision of Toyota According to Conn’s interview of Kaki Toyota, he had mentioned his view wrought the turbulent times of Toyota, and his global vision of Toyota. Since he became the president of Toyota Motor Corporation, there was not a lot of positive news. His leadership was faced with different challenges through the recall crisis and the crisis in Japan from the tsunami in the earthquake.
When he encountered those difficulties, he went back to the founding philosophy of Toyota Motor Corp., which is to make contribution of the society thought automobile manufacturing. He continues to pounded this founding philosophy and had came out with the recently announces of global vision, to become company that can “earn smile from the customers by the excising their expectations. ” In the future, he would like to lead the company to be the most attractive in the entire automobile industry. He would like to see Toyota having greatest supports from the largest number of the customers. CNN 2011) 8. Conclusion In 2010, the recalls crisis had brought negative impacts to Toyota, especially to its leadership. Kaki Toyota, a young president of Toyota in its history, who showed quality appropriate leader even before he taken over the company. However, his slow response of the 2010 recall crisis had disappointed to the public. From the highest point dramatic drop to the downfall, Mr.. Toyota and his company had faced some real challenges. How they can tackles these challenges? The answer is through “change”. Mr..
Toyota ‘s deep apologize for the recall crisis had proven his responsibility. He stepped out and promised to change Toyota for the better. His new strategic managements has helped to create better communication, better quality control, and better motivation and control system for people, which helped the company into growing bigger and more diverse. Reference: Northing, S. (2008) Toyota Family Member Vies for the Top job- Founder’s Grandson Could Resume a Line of Toyota Family Presidents, but a former Chief Has Concerns.