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	<title>Comments on: The Fall of the Mighty Toyota</title>
	<atom:link href="http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/feed/" rel="self" type="application/rss+xml" />
	<link>http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/</link>
	<description>on lean culture, transformational leadership, and entrepreneurial   excellence</description>
	<lastBuildDate>Thu, 17 May 2012 13:30:13 +0000</lastBuildDate>
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		<title>By: RalfLippold</title>
		<link>http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/comment-page-1/#comment-504</link>
		<dc:creator>RalfLippold</dc:creator>
		<pubDate>Sat, 20 Feb 2010 16:29:12 +0000</pubDate>
		<guid isPermaLink="false">http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/#comment-504</guid>
		<description>Jamie,

You are right that system dynamics comes over far too complicated. Reading papers from the past conferences makes me think, &quot;How to apply this into the daily work affairs?&quot;

Myself I learned system dynamics a couple of years back from the founders and current leaders of the field at MIT Sloan. Having worked inside the BMW factory system at BMW Plant Leipzig for five years, system dynamics gave me the tools to see what was really going on.

Actually, besides rigorous modeling, which can be really time consuming and frustrating, the method is giving a good leading guideline for anybody  affected by processes.

I am pretty sure that Toyota also has several folks working together with the employees on the gemba to get the processes straight (sustainably).

The following I just found, by chance while looking for something totally different, http://robertwziegler.com/co-creation_vol_1_issue_2.pdf

Perhaps the case is not even so difficult and surprising as we all think now. 

Toyota will definitely learn from this current &quot;desaster&quot; and that is what Toyota stands for: Growing better after a huge problem!

Same happened to them in the 30s when their cars broke down on the roads faster than you could repair them.

Really enjoying the conversation, learning new perspectives and new people:-)

Thanks for providing this cool space Jamie!

Cheers, Ralf</description>
		<content:encoded><![CDATA[<p>Jamie,</p>
<p>You are right that system dynamics comes over far too complicated. Reading papers from the past conferences makes me think, &#8220;How to apply this into the daily work affairs?&#8221;</p>
<p>Myself I learned system dynamics a couple of years back from the founders and current leaders of the field at MIT Sloan. Having worked inside the BMW factory system at BMW Plant Leipzig for five years, system dynamics gave me the tools to see what was really going on.</p>
<p>Actually, besides rigorous modeling, which can be really time consuming and frustrating, the method is giving a good leading guideline for anybody  affected by processes.</p>
<p>I am pretty sure that Toyota also has several folks working together with the employees on the gemba to get the processes straight (sustainably).</p>
<p>The following I just found, by chance while looking for something totally different, <a href="http://robertwziegler.com/co-creation_vol_1_issue_2.pdf" rel="nofollow">http://robertwziegler.com/co-creation_vol_1_issue_2.pdf</a></p>
<p>Perhaps the case is not even so difficult and surprising as we all think now. </p>
<p>Toyota will definitely learn from this current &#8220;desaster&#8221; and that is what Toyota stands for: Growing better after a huge problem!</p>
<p>Same happened to them in the 30s when their cars broke down on the roads faster than you could repair them.</p>
<p>Really enjoying the conversation, learning new perspectives and new people:-)</p>
<p>Thanks for providing this cool space Jamie!</p>
<p>Cheers, Ralf</p>
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		<title>By: Mark Graban</title>
		<link>http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/comment-page-1/#comment-500</link>
		<dc:creator>Mark Graban</dc:creator>
		<pubDate>Fri, 19 Feb 2010 04:34:53 +0000</pubDate>
		<guid isPermaLink="false">http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/#comment-500</guid>
		<description>Akio Toyoda changed his mind about appearing in front of Congress. Agree this is a good move.

http://ow.ly/18VO9</description>
		<content:encoded><![CDATA[<p>Akio Toyoda changed his mind about appearing in front of Congress. Agree this is a good move.</p>
<p><a href="http://ow.ly/18VO9" rel="nofollow">http://ow.ly/18VO9</a></p>
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		<title>By: Jamie Flinchbaugh</title>
		<link>http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/comment-page-1/#comment-497</link>
		<dc:creator>Jamie Flinchbaugh</dc:creator>
		<pubDate>Thu, 18 Feb 2010 02:33:17 +0000</pubDate>
		<guid isPermaLink="false">http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/#comment-497</guid>
		<description>Ralf, having learned systems thinking and systems dynamics by some of the original thinkers on the subject, I would state it a different way. I agree we don&#039;t see the interconnections, but systems dynamics doesn&#039;t really simplify the mist. It just maps it. It&#039;s a complex-systems mapping tool, mapping all the dynamics and interconnectivity. Of course, to some degree, it is always still a model and models always have limits. 

Matt, I am disappointed in that decision too. Whether congressional hearings serve any purpose at all can be questioned. However, in part their intended people is to give &quot;the people&quot; a voice to question those who may have wronged the people. Although it&#039;s not a criminal or civil legal case, it is the people&#039;s case. Perhaps he was coached that he&#039;s not that good in front of a camera, which is true. But I think he would have been better off doing this face to face, in the room. This shows a lack of understanding the American public and politics. Especially given that NUMMI is closing, and especially in Pelosi&#039;s backyard, this just makes them a double target. Don&#039;t get them more ammunition. Here is more on what&#039;s going on with the hearings for those interested: http://www.autoweek.com/article/20100217/CARNEWS/100219917</description>
		<content:encoded><![CDATA[<p>Ralf, having learned systems thinking and systems dynamics by some of the original thinkers on the subject, I would state it a different way. I agree we don&#8217;t see the interconnections, but systems dynamics doesn&#8217;t really simplify the mist. It just maps it. It&#8217;s a complex-systems mapping tool, mapping all the dynamics and interconnectivity. Of course, to some degree, it is always still a model and models always have limits. </p>
<p>Matt, I am disappointed in that decision too. Whether congressional hearings serve any purpose at all can be questioned. However, in part their intended people is to give &#8220;the people&#8221; a voice to question those who may have wronged the people. Although it&#8217;s not a criminal or civil legal case, it is the people&#8217;s case. Perhaps he was coached that he&#8217;s not that good in front of a camera, which is true. But I think he would have been better off doing this face to face, in the room. This shows a lack of understanding the American public and politics. Especially given that NUMMI is closing, and especially in Pelosi&#8217;s backyard, this just makes them a double target. Don&#8217;t get them more ammunition. Here is more on what&#8217;s going on with the hearings for those interested: <a href="http://www.autoweek.com/article/20100217/CARNEWS/100219917" rel="nofollow">http://www.autoweek.com/article/20100217/CARNEWS/100219917</a></p>
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		<title>By: Matt May</title>
		<link>http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/comment-page-1/#comment-496</link>
		<dc:creator>Matt May</dc:creator>
		<pubDate>Thu, 18 Feb 2010 01:44:43 +0000</pubDate>
		<guid isPermaLink="false">http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/#comment-496</guid>
		<description>Excellent post and review Jamie. I like the point about the two different types of people. There&#039;s a third, I&#039;m finding out: the shoulder-shruggers. 

As you suggest, and for the same reasons you cite, I&#039;ve declined the media. I don&#039;t think it takes brains to speculate without a knowledge wheelbase, which is what 95% of the commentary is. And I honestly don&#039;t think the offerings are sincere or authentic..most of it is spotlight grabbing for another agenda.

We may never know the cause at the deepest level. But can see how Toyota is handling things. Personally, I&#039;m disappointed that Akio Toyoda has declined to face Washington. I think it&#039;s an opportunity missed. I think while it might make sense in Japan, it can do more harm than good in America and Europe. He doesn&#039;t need to have answers, just transparency. Hr is new to the helm, he inherited a perfect storm, and part of weathering it is taking public responsibility for it on the soil where many of the tragedies occurred.

He could turn some Toyota goodwill into illwill, which would be a tragedy in and of itself. I think the most damaging indictment is the WSJ article about &quot;Toyota&#039;s Secret Culture.&quot; If it&#039;s true, there were many bad decisions made, and too much in the way of executive nonchalance, denial, and blameshifting, dating back a half decade. And if true, I&#039;m shocked.</description>
		<content:encoded><![CDATA[<p>Excellent post and review Jamie. I like the point about the two different types of people. There&#8217;s a third, I&#8217;m finding out: the shoulder-shruggers. </p>
<p>As you suggest, and for the same reasons you cite, I&#8217;ve declined the media. I don&#8217;t think it takes brains to speculate without a knowledge wheelbase, which is what 95% of the commentary is. And I honestly don&#8217;t think the offerings are sincere or authentic..most of it is spotlight grabbing for another agenda.</p>
<p>We may never know the cause at the deepest level. But can see how Toyota is handling things. Personally, I&#8217;m disappointed that Akio Toyoda has declined to face Washington. I think it&#8217;s an opportunity missed. I think while it might make sense in Japan, it can do more harm than good in America and Europe. He doesn&#8217;t need to have answers, just transparency. Hr is new to the helm, he inherited a perfect storm, and part of weathering it is taking public responsibility for it on the soil where many of the tragedies occurred.</p>
<p>He could turn some Toyota goodwill into illwill, which would be a tragedy in and of itself. I think the most damaging indictment is the WSJ article about &#8220;Toyota&#8217;s Secret Culture.&#8221; If it&#8217;s true, there were many bad decisions made, and too much in the way of executive nonchalance, denial, and blameshifting, dating back a half decade. And if true, I&#8217;m shocked.</p>
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		<title>By: Sean Leo Ryan</title>
		<link>http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/comment-page-1/#comment-495</link>
		<dc:creator>Sean Leo Ryan</dc:creator>
		<pubDate>Wed, 17 Feb 2010 22:52:54 +0000</pubDate>
		<guid isPermaLink="false">http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/#comment-495</guid>
		<description>Great post.  From a customer management perspective, it seems the narratives on Toyota have taken two themes  - 1) its a failure in PR and crises management and, while bungled and needs to be fixed, it should be manageable as such, or 2) its a bigger long term failure related to loss in customer focus, choosing to focus on rapid growth leading to quality issues,thereby in turn destroying customer loyalty as its brand was associated with quality.  

Given the well documented leadership Toyota has had in instilling a customer focus throughout the organization, its hard to see this issue as sudden company-wide break down in customer-centricity.  However, its also hard to see this as only &quot;bungled PR problem&quot;.  

What resonated for me was seeing ABC News, posing as a customer caller to a Toyota CCR and the rep bungling the call in a big way.  I can only imagine the thousands of calls repeated like this each day, making the customer base even more unsure.  And what is the dealer network doing?  More mixed messages? 

Even the most well run PR campaign does not have the ability to fix these types of front line customer issues (which ironically was also broadcasted on national TV).  And, IMO, &quot;PR Only&quot; &quot;Crises Management Only&quot; approaches are legacy ways to manage wider issues like this these days.  PR increasingly is not effective in isolation, when the &quot;mass media&quot; channel is shrinking in importance, you have a complex dealer and customer service network, and is only one out of many many customer touchpoints now used for evaluation.

But, at the same time, its a major stretch to say thee current issue means Toyota has somehow lost their company-wide focus on customer-centricity... that&#039;s huge jump IMO but its being repeated in media and blogs.  Moreover, to my knowledge, it does not seem that there were other indicators that they &quot;took their eye of the ball&quot; in these areas recent history.  

However, I am not a Toyota analyst, so if there are more data points to show that this indeed has been a growing trend inside Toyota, then that recall storyline can easily weave into the narrative.  

But if this line of argument is solely based on the management of this single issue, while bungled, then that&#039;s really not sufficient to make sweeping claims about anything, as you point out.</description>
		<content:encoded><![CDATA[<p>Great post.  From a customer management perspective, it seems the narratives on Toyota have taken two themes  &#8211; 1) its a failure in PR and crises management and, while bungled and needs to be fixed, it should be manageable as such, or 2) its a bigger long term failure related to loss in customer focus, choosing to focus on rapid growth leading to quality issues,thereby in turn destroying customer loyalty as its brand was associated with quality.  </p>
<p>Given the well documented leadership Toyota has had in instilling a customer focus throughout the organization, its hard to see this issue as sudden company-wide break down in customer-centricity.  However, its also hard to see this as only &#8220;bungled PR problem&#8221;.  </p>
<p>What resonated for me was seeing ABC News, posing as a customer caller to a Toyota CCR and the rep bungling the call in a big way.  I can only imagine the thousands of calls repeated like this each day, making the customer base even more unsure.  And what is the dealer network doing?  More mixed messages? </p>
<p>Even the most well run PR campaign does not have the ability to fix these types of front line customer issues (which ironically was also broadcasted on national TV).  And, IMO, &#8220;PR Only&#8221; &#8220;Crises Management Only&#8221; approaches are legacy ways to manage wider issues like this these days.  PR increasingly is not effective in isolation, when the &#8220;mass media&#8221; channel is shrinking in importance, you have a complex dealer and customer service network, and is only one out of many many customer touchpoints now used for evaluation.</p>
<p>But, at the same time, its a major stretch to say thee current issue means Toyota has somehow lost their company-wide focus on customer-centricity&#8230; that&#8217;s huge jump IMO but its being repeated in media and blogs.  Moreover, to my knowledge, it does not seem that there were other indicators that they &#8220;took their eye of the ball&#8221; in these areas recent history.  </p>
<p>However, I am not a Toyota analyst, so if there are more data points to show that this indeed has been a growing trend inside Toyota, then that recall storyline can easily weave into the narrative.  </p>
<p>But if this line of argument is solely based on the management of this single issue, while bungled, then that&#8217;s really not sufficient to make sweeping claims about anything, as you point out.</p>
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		<title>By: RalfLippold</title>
		<link>http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/comment-page-1/#comment-494</link>
		<dc:creator>RalfLippold</dc:creator>
		<pubDate>Wed, 17 Feb 2010 22:12:48 +0000</pubDate>
		<guid isPermaLink="false">http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/#comment-494</guid>
		<description>Hi Jamie,

Thanks a lot for connecting on Tom Johnson&#039;s entry http://blog.pegasuscom.com/Leverage-Points-Blog/bid/30450/How-Toyota-Ran-Off-the-Road-and-How-It-Can-Get-Back-on-Track:-)

Complexity however is not the problem from my point of view. What seems to be the problem is that humans (in general) have the tendency to &quot;not&quot;-see the interconnections of the various processes.

Systems thinking (and in a more rigorous form system dynamics) clear up the mist of what is truly going on in a corporation, or any organizaton of which size whatsoever.

This however reveals &quot;hidden agendas&quot; and the intentions of organizational design that inevitably leads to unintended consequences. Who would like to get their &quot;hidden agendas&quot; opened up and thrown off their current position? What is their reaction?

@all, we always speak of Toyota. Are we sure these guys are all equal? For Germany I can tell you that Toyota is not what we all think Toyota stands for. Some visits at dealerships told me different;-(

It still and always is about PEOPLE and their individual role they play in the &quot;big business game&quot;. A dive in Edgar Schein&#039;s &quot;DEC is Dead, Long Live DEC&quot; is worthwhile especially in understanding what dynamics have kicked in a while ago at Toyota and the various departments.

Best regards from a very positive thinking lean guy from Dresden

Ralf</description>
		<content:encoded><![CDATA[<p>Hi Jamie,</p>
<p>Thanks a lot for connecting on Tom Johnson&#8217;s entry <a href="http://blog.pegasuscom.com/Leverage-Points-Blog/bid/30450/How-Toyota-Ran-Off-the-Road-and-How-It-Can-Get-Back-on-Track:-" rel="nofollow">http://blog.pegasuscom.com/Leverage-Points-Blog/bid/30450/How-Toyota-Ran-Off-the-Road-and-How-It-Can-Get-Back-on-Track:-</a>)</p>
<p>Complexity however is not the problem from my point of view. What seems to be the problem is that humans (in general) have the tendency to &#8220;not&#8221;-see the interconnections of the various processes.</p>
<p>Systems thinking (and in a more rigorous form system dynamics) clear up the mist of what is truly going on in a corporation, or any organizaton of which size whatsoever.</p>
<p>This however reveals &#8220;hidden agendas&#8221; and the intentions of organizational design that inevitably leads to unintended consequences. Who would like to get their &#8220;hidden agendas&#8221; opened up and thrown off their current position? What is their reaction?</p>
<p>@all, we always speak of Toyota. Are we sure these guys are all equal? For Germany I can tell you that Toyota is not what we all think Toyota stands for. Some visits at dealerships told me different;-(</p>
<p>It still and always is about PEOPLE and their individual role they play in the &#8220;big business game&#8221;. A dive in Edgar Schein&#8217;s &#8220;DEC is Dead, Long Live DEC&#8221; is worthwhile especially in understanding what dynamics have kicked in a while ago at Toyota and the various departments.</p>
<p>Best regards from a very positive thinking lean guy from Dresden</p>
<p>Ralf</p>
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		<title>By: Mark Graban</title>
		<link>http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/comment-page-1/#comment-493</link>
		<dc:creator>Mark Graban</dc:creator>
		<pubDate>Wed, 17 Feb 2010 21:46:18 +0000</pubDate>
		<guid isPermaLink="false">http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/#comment-493</guid>
		<description>@Jon Miller - Atul Gawande also makes the case (&quot;The Checklist Manifesto&quot;) that modern medicine has gotten way too complex technologically, therefore we need better process and better teamwork (ala checklists). Steven J. Spear touches on this same theme in &quot;Chasing the Rabbit.&quot; 

You could argue, even with its problems, Toyota is harming far fewer people than healthcare delivery around the country does. Yet THAT problem is not front-page news. Go figure. So much for Pareto analysis for what&#039;s really killing people.

Not trying to hi-jack the thread, Jamie...</description>
		<content:encoded><![CDATA[<p>@Jon Miller &#8211; Atul Gawande also makes the case (&#8220;The Checklist Manifesto&#8221;) that modern medicine has gotten way too complex technologically, therefore we need better process and better teamwork (ala checklists). Steven J. Spear touches on this same theme in &#8220;Chasing the Rabbit.&#8221; </p>
<p>You could argue, even with its problems, Toyota is harming far fewer people than healthcare delivery around the country does. Yet THAT problem is not front-page news. Go figure. So much for Pareto analysis for what&#8217;s really killing people.</p>
<p>Not trying to hi-jack the thread, Jamie&#8230;</p>
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		<title>By: Jamie Flinchbaugh</title>
		<link>http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/comment-page-1/#comment-492</link>
		<dc:creator>Jamie Flinchbaugh</dc:creator>
		<pubDate>Wed, 17 Feb 2010 21:42:11 +0000</pubDate>
		<guid isPermaLink="false">http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/#comment-492</guid>
		<description>Thank you everyone for the great comments. 

Jon, I agree with your concerns about reductionist science. I&#039;ll have to add those two books to my reading list. I hope they&#039;re available in Kindle. I&#039;m amazed at how willing people are to say &quot;I saw these two things occur near each other, therefore it must be cause and effect.&quot; It&#039;s happening with Toyota. Yes, Toyota may have lost a bit of their grasp on Toyota way thinking. And yes, they had a major project. They may be related, they may not. They were plenty susceptible to major problems before just because of the sheer opportunities. 

Simon, given the magnitude of contributions to this story, I really appreciate the compliment.</description>
		<content:encoded><![CDATA[<p>Thank you everyone for the great comments. </p>
<p>Jon, I agree with your concerns about reductionist science. I&#8217;ll have to add those two books to my reading list. I hope they&#8217;re available in Kindle. I&#8217;m amazed at how willing people are to say &#8220;I saw these two things occur near each other, therefore it must be cause and effect.&#8221; It&#8217;s happening with Toyota. Yes, Toyota may have lost a bit of their grasp on Toyota way thinking. And yes, they had a major project. They may be related, they may not. They were plenty susceptible to major problems before just because of the sheer opportunities. </p>
<p>Simon, given the magnitude of contributions to this story, I really appreciate the compliment.</p>
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		<title>By: Simon Ellberger</title>
		<link>http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/comment-page-1/#comment-491</link>
		<dc:creator>Simon Ellberger</dc:creator>
		<pubDate>Wed, 17 Feb 2010 20:23:41 +0000</pubDate>
		<guid isPermaLink="false">http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/#comment-491</guid>
		<description>Jamie: One of the best summaries I&#039;ve read of the current situation. Thanks.</description>
		<content:encoded><![CDATA[<p>Jamie: One of the best summaries I&#8217;ve read of the current situation. Thanks.</p>
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		<title>By: Karen Wilhelm</title>
		<link>http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/comment-page-1/#comment-490</link>
		<dc:creator>Karen Wilhelm</dc:creator>
		<pubDate>Wed, 17 Feb 2010 19:04:45 +0000</pubDate>
		<guid isPermaLink="false">http://jamieflinchbaugh.com/2010/02/the-fall-of-the-mighty-toyota/#comment-490</guid>
		<description>Thoughtful and thorough roundup of the snowstorm of reaction to Toyota&#039;s problems. Mr.Toyoda said what seems to me to be the problem is that they strayed from their principles. I think of it as Toyota having forgotten how to be Toyota for awhile. Learning from what they do in the next two to five years will be of great value to the lean community.</description>
		<content:encoded><![CDATA[<p>Thoughtful and thorough roundup of the snowstorm of reaction to Toyota&#8217;s problems. Mr.Toyoda said what seems to me to be the problem is that they strayed from their principles. I think of it as Toyota having forgotten how to be Toyota for awhile. Learning from what they do in the next two to five years will be of great value to the lean community.</p>
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