A Book Review

That Can Lead To Improved Business Performance!!!

I have just finished reading a very good book, How Toyota Became #1: Leadership Lessons from the World’s Greatest Car Company by David Magee, copyright 2007. Perhaps you have read it also? The book is well written describing how Toyota came from a small loom builder to the largest automaker in the world.

How did Toyota make this miraculous journey? The answer, on the surface, is very easy. Toyota has a maniacal focus on their customer’s requirements. As with any success story Dave Magee points out that the accomplishment is more complicated. David points to Toyota’s focus on long term goals instead of focusing on the next quarter as one of the strong points. He also points out that to meet the customers requirements. Everyone in the corporation must understand their responsibility in meeting the customer’s needs.

Perhaps the most important point about Toyota’s success was their vision that continual improvement is the only way to success. Continual improvement is required because once the customer’s needs have been met they will want more. The implication of the customers desire for more is that customer satisfaction is only achievable by continual improvement.

Throughout the book references are made to GM, Ford and Chrysler. He made repeated reference to how these companies had the opportunity to become better. Instead they chose to stay the status quo. Why shouldn’t they stay that way? After all GM, Ford and Chrysler were making money. Whats more the managers of these corporations were living a life of luxury. There was no reason to change their business processes.

Reading this book will give insight into how one company succeeded. What it does not do is give details on how you as an entrepreneur or corporate manager can reach the same results. The book was not intended to do so. The book is intended to inform that there is a better way.

Now that the book review is over you know there is a better way to do business. Here is what to do. Note: Some but not all of these concepts are gleaned from David’s book on Toyota.

• Build the business on ethical behavior.There is no room for deceit.
  • Develop a problem solving process based exclusively on facts.
  • The person who finds the problem must speak up immediately.
  • Always ask questions.Go to the source of the problem.
  • Get the facts
  • Document all the facts.
• Avoid decisions based on hearsay.
• Make every decision as if you were the customer.
• David Mcgee quotes Jim Press [p. 125] of Toyota as saying.
  • “Learn the customer.
  • Live the customer.
  • Empathize with the customer.”
• Make every decision so as to:
  • Improve efficiency.
  • Improve effectiveness.
  • Reduce Waste.
  • Prevent/eliminate frivolous behavior.
• Do not make the assumption that because you are successful the customer is happy.
• Do make decisions that improve not only customer satisfaction but helps the employee, the community and the environment.
• Do not be proud.
  
• Always show appreciation and respect to all those who you meet.
• Make all decisions in the business as a team.
• Do not attempt to lay blame. Find the real solution. Trying to blame someone for a problem only tends to wast resources.
• Empower everyone in the organization to solve problems.
• Constantly check to verify the decisions made have indeed been effective and efficient.
• Change the decision process when necessary to improve effectiveness and efficiency.
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If you need help in implementation of these concepts let KAB Global Enterprises, LLP help you. We have a plan for small to large scale businesses. Consultation services are available.