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Extreme Toyota


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Table of Contents

Preface xi CHAPTER 1 Extreme Toyota: An Organization Powered by Creative Contradictions 1 An Amazing Track Record 1 The Hard Side of Toyota 3 The Powerful and Mysterious Soft Side 3 How Toyota Is Like a Failed, Stagnant Company 4 Management Orchestrated Contradictions,Opposites, and Paradoxes 8 Embracing Contradictions as a Way of Life 19 Conclusion 20 CHAPTER 2 Six Opposing Forces That Drive the Company's Expansion-and Keep It from Breaking Apart 23 Forces of Expansion 25 Forces of Integration 30 Six Forces Working Together 34 Resource Base 35 Six Forces in Action: Case of the Lexus 38 Conclusion 42 CHAPTER 3 The Force of Impossible Goals 43 Meet Every Customer Need 45 The Finest Cars, the Finest Dealers 51 Bypassing Japan to Make a Global Car 57 Conclusion 64 CHAPTER 4 Eagerness to Experiment 67 Experimentation Hardware:The Eight-Step and A3 Processes 73 Experimentation Software: Values 86 Conclusion 92 CHAPTER 5 Local Customization 95 The Underdog Even at Home 98 Customizing the IMV in Asia 99 The Challenges and Benefits of Local Customization 100 Customizing the Yaris for Europe 102 Customizing the Scion for the United States Youth Segment 105 Customizing the Tundra for the United States 115 Disseminating Local Best Practices throughout the World 116 Conclusion 118 CHAPTER 6 The Founders' Philosophies 121 Tomorrow Will Be Better than Today 124 Everybody Should Win 129 Customer First, Dealers Second, and Manufacturer Last 135 Genchi Genbutsu 139 Conclusion 141 CHAPTER 7 Toyota's Nerve System-A Human Version of the World Wide Web 143 Open and Lateral Dissemination of Know-How 146 Freedom to Voice Contrary Opinions 149 Frequent Face-to-Face Interaction 154 Making Tacit Knowledge Explicit: The Toyota Way 2001 158 Formal and Informal Support Mechanisms 161 Conclusion 163 CHAPTER 8 Up-and-In Human Resource Management 165 Stable, Long-Term Employment 169 Emphasis on Training,Training, and More Training 172 Power in Teamwork 177 Action Orientation 178 Learning-Based Evaluation 180 Conclusion 183 CHAPTER 9 Toyota's Resource Base 185 Investing in Efficiency 187 Cultivating Organizational Capability and People Required for Growth 191 Making a Long-Term Commitment to People 198 Conclusion 206 CHAPTER 10 A Company Always in Danger 211 Organizational Growth Pains 212 Employee Complacency 214 Cultural Rigidity 216 Workforce Diversity 218 Insular Approach to the Capital Markets 220 Rise of New Competitors 221 Conclusion 223 CHAPTER 11 What Your Organization Can Learn from Toyota: Ten Powerful Contradictions 225 Embrace Contradictions 229 Conclusion 238 Appendix A Selected Auto Industry Figures and Comparisons 241 Chapter 1-Extreme Toyota 241 Chapter 2-Six Forces 248 Chapter 3-Impossible Goals 253 Chapter 9-Resources 254 Appendix B Literature Review 257 Literature Review Methodology 258 Notes 263 References 287 Index 297

About the Author

HIROTAKA TAKEUCHI, EMI OSONO, and NORIHIKO SHIMIZU are business school graduates from the University of California, Berkeley, The George Washington University, and Stanford University, respectively. They are professors at one of Japan's top business schools, Hitotsubashi University, Graduate School of International Corporate Strategy (www.ics.hit-u.ac.jp). Takeuchi works closely with Professor Michael E. Porter of Harvard University, with whom he coauthored Can Japan Compete? (2000). All three authors are also frequent speakers at conferences and seminars around the world.


"Heavily footed and studded with graphs and charts, this insider's view of one of the world's leading manufacturers is somewhat academic in tone yet has enough anecdotes to make it interesting." (Library Journal, May 15, 2008)

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