Page 200 - Toyota Under Fire

RESPONSE AND THE ROAD TO RECOVER Y

Decision-Making Processes

In addition to the complex coordination challenge, in impor-
tant ways, Toyota’s adherence to TBP was a contributing cause
of the crisis. This was not because of an inherent flaw in the
problem-solving approach but because of the mismatch be-
tween the methodical, facts-only core of TBP and the rapid-fire,
24-hour news cycle fueled by rumor and speculation that has de-
fined the American media scene since the advent of cable news
and the Internet. To a public that is expecting daily, if not hourly,
updates, Toyota appeared to be dragging its feet or, worse, hiding.
Even when Toyota was taking action, it was doing so based on a
detailed study of engineering and quality issues, ignoring the sen-
sational claims of unstoppable cars with a mind of their own that
engineers and executives in Japan were confident were false. But
it was those claims that customers wanted and needed to have ad-
dressed so that they could feel safe in their vehicles.
There are several aspects of Toyota culture that lead to a
slow, deliberate process. The first is genchi genbutsu, which we
discussed in Chapter 1. A key implication is that decisions are
made after a careful investigation of the facts, including seeing for
yourself firsthand if possible, for example, retrieving and carefully
investigating the actual pedals. Related to this is the concept of
nemawashi, which means that whoever is leading a project should
“prepare the soil” by having deep discussions with all key stake-
holders. By the time a decision has been made, the facts are very
clearly laid out, and all stakeholders are aware of the facts, the de-
cision, and the rationale and are on board.
This philosophy of slow, deliberate, consensus decision mak-
ing has served Toyota well. It’s what took Toyota to the top with a
remarkable record of consistent profitability for 50 years. In fact,

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