Foreword (to the First Edition)

When I joined Toyota after 18 years in the US automobile business, I didn’t know exactly what to expect. But I was hopeful. I knew that I wasn’t comfortable with the direction that American automobile manufacturing was taking, and I felt Toyota might be different. In no time at all I noticed a fundamental difference between Toyota and my previous employers. At a Toyota/GM joint venture plant in Fremont, California, called NUMMI (New United Motor Manufacturing Inc.), I witnessed the transformation of a workforce from one of the worst in the General Motors system to one of the best in any manufacturing facility in the United States. The difference was the “Toyota Way.” In this book, Dr. Liker explains the management systems, thinking, and philosophy that form the foundation of Toyota’s success, providing the reader with valuable insights that can be applied to any business or situation. While there are many books that provide insight into the tools and methods of Toyota’s Production System (TPS), Professor Liker’s book is unique in its explanation of the broader principles at work in the Toyota culture.

The Toyota Way is not the Japanese Way or the American Way or even the Gary Convis Way of managing. It is the fundamental way that Toyota views its world and does business. The Toyota Way, along with the Toyota Production System, makes up Toyota’s “DNA.” This DNA was born with the founders of our company and continues to be developed and nurtured in our current and future leaders.

The Toyota Way can be briefly summarized through the two pillars that support it: “Continuous Improvement” and “Respect for People.” Continuous improvement, often called kaizen, defines Toyota’s basic approach to doing business. Challenge everything. More important than the actual improvements that individuals contribute, the true value of continuous improvement is in creating an atmosphere of continuous learning and an environment that not only accepts, but actually embraces change. Such an environment can only be created where there is respect for people—hence the second pillar of the Toyota Way. Toyota demonstrates this respect by providing employment security and seeking to engage team members through active participation in improving their jobs. As managers, we must take the responsibility for developing and nurturing mutual trust and understanding among all team members. I believe management has no more critical role than to motivate and engage large numbers of people to work together toward a common goal. Defining and explaining the goal, sharing a path to achieving it, motivating people to take the journey with you, and assisting them by removing obstacles—those are management’s reasons for being. We must engage the minds of people to support and contribute their ideas to the organization. In my experience, the Toyota Way is the best method for fulfilling this role.

However, readers of this book should understand that each organization must develop its own way of doing business. The Toyota Way is the special product of the people who created Toyota and its unique history. Toyota is one of the most successful companies in the world. I hope this book will give you an understanding of what has made Toyota successful, and some practical ideas that you can use to develop your own approach to business.

—Gary Convis

    Former Managing Officer of Toyota and Chairman,
    Toyota Motor Manufacturing, Kentucky