The Toyota Way
The Toyota Way: 14 Management Principles from the World’s Greatest Manufacturer
Jeffrey K. Liker
What it’s about
The author, a faculty member at University of Michigan at the time was researching and writing this book, did deep research into the principles and practices that made Toyota the world’s most respected, and most copied, manufacturer. From his research, he identified 14 essential ‘principles’ which reflect the essence of the Toyota management system (which he calls The Toyota Way) which enables the company to maintain extraordinary levels of quality, effectiveness and efficiency.
Why I like it
As my students all know, I define the keys to value creation to be (1) effectively deliver value to humanity, (2) efficiently deliver value to humanity, (3a) communicate your management principles and priorities to all stakeholders so that they continue to support and engage with you, (3b) continuously rebuild sustainable competitive advantage, and (4) manage the financing elements of your company to ensure short-term financial health and long-term value creation. This book is a brilliant demonstration of (1), (2), and (3b). Toyota has survive and thrived over 9 decades in spite of remarkable changes in technology, consumer preferences, technologies, regulations, globalization and the competitive landscape, among many other things. Liker has captured the key elements of the culture and internal processes which has enabled this incredible performance and kept Toyota relentlessly focused on value creation.