A Company to Admire

By the end of 2007, Toyota was the dominant automobile company in the world. Far more profitable than its major American competitors, Toyota had been continuously profitable for almost 50 years, a record that rivaled that of any global 1000 firm and was unheard of in manufacturing industries.

Toyota's record for building quality products and achieving high levels of customer satisfaction drove its growth and profitability. Its customer loyalty was the best in the industry.

Toyota has changed the way a large portion of the world thinks about quality and how to continuously improve any process. Toyota set new standards for operational excellence by revolutionizing manufacturing, process engineering, and quality.

These standards have become the goal for companies in many industries, although few companies implement these concepts to the extent that Toyota has. Companies from various business sectors spend billions of dollars to understand, learn from, and replicate the Toyota model.

To fully understand what happened at Toyota from 2008-2010, it is critical to first study Toyota's history. Toyota was originally a Japanese manufacturer of looms, which started in the 1800s.

In the early 1930s, the company expanded into other sectors of manufacturing. By 1937, Toyota's automobile manufacturing division had already become the center of Toyota's business.

During the start-up of the automobile manufacturing business, company leaders laid out an operating philosophy and introduced new concepts about quality and inventory management, including processes to eliminate mistakes and implement just-in-time inventory. The company realized that, to maintain a commitment to catching and fixing problems and operating inventory with a just-in-time approach, it required a systematic process to solving problems throughout the company.

Through the years this problem-solving process evolved to today's version, called the Toyota Business Practices, which entails the following steps:

Plan
* The process begins with a statement of the problem, including the gap between the actual and ideal conditions.
* This gap is then broken down into the most important problems that can be acted upon.
* These specific sub-problems are then analyzed by asking "why?" until the root cause is found.
* Alternative solutions and countermeasures are then identified and evaluated.
* The best solution is chosen, based on what is currently known.

Do
* The chosen solution is implemented on a trial basis.

Check
* The results and impact of the trial implementation are monitored.

Act
* Adjustments are made based on the results, the new processes are standardized and disseminated throughout the organization with further adjustments being made until the gap is eliminated and the next challenge identified.


The Toyota Business Practices (TBP) broadly applies the problem-solving philosophy to the entire enterprise. Toyota believes that this problem-solving process is essential to leadership and requires all of its leaders to become masters of the process.

As demonstrated by its remarkably consistent growth and profitability, Toyota has built a culture that constantly renews its commitment to excellence and to its core principles, instilling those principles and passion into each new generation of employees and leaders. The combination of production processes, TBP, and its culture (collectively known as The Toyota Way) became the competitive advantage that allowed Toyota to become a successful manufacturer in Asia and eventually in the U.S.

This article is based on the book "Toyota Under Fire." The book summary is available online at Business Book Summaries.

YES! Space

In the unpredictable art of improv, actors walk onstage without scripts, props, or costumes. They take cues from audience members as they provide ideas for characters, subject matter, and plot.

While members of the audience believe that improv troupes must rely on countless tricks and skills, improvisers apply concrete guidelines that allow them to create impressive, often unbelievable solutions to the unpredictable scenarios in which they find themselves onstage. By studying and implementing the same guidelines employed by improvisers, managers and employees can begin to establish a network of trust in their workplaces.

Yes! Space is an improvisational concept that refers to members of a troupe committing to a performance by first saying "yes." Yes! Space consists of three parts: say yes, put the critic on hold, and make it public.

1. Say yes. Saying the word "yes" is foundational in establishing a collaborative atmosphere and trusting space; additionally, it brings the speaker into a world of possibilities. Positivity feels unnatural to humans, who must exert a concerted effort to avoid reacting negatively to situations.

Several studies reaffirm how positive attitudes result in higher levels of trust and stronger relationships, which in the workplace end in higher productivity and sales. Hough references appreciative inquiry, the notion that by focusing on what they are doing right, companies can grow their strongest business practices.

Saying "yes" means the speaker is open to exploring a possibility, which results in employees understanding that all of their ideas are valued and will be considered. An important side effect of this is that it makes employees themselves feel valued.

Improvisers believe that it is critical to acknowledge ideas, fellow actors, and audience members with "yes;" rejecting ideas would result in a dead-end improvisation. Saying "yes" also necessitates that the troupe work as a team.

In trainings, hearing "yes" in response to ideas shows employees, especially those reluctant to participate, that they are valued and that they will not be ignored or judged. Creating a safe environment by responding with "yes" fosters participation, employee confidence, and idea-sharing, all of which contribute to a more collaborative, productive workplace.

2. Put the critic on hold. The second step in creating Yes! Space is encouraging people to silence the critic in their minds. Saying "no" is a natural defense mechanism that causes people to reject ideas that push their boundaries.

However, the habit of reacting with "no" stifles creativity, innovation, and productivity. Workplace training and academia teach the importance of critical thinking; unfortunately, the intense focus on identifying problems results in a propensity to reject ideas, often hampering participation and collaboration.

Instead of jumping to critical conclusions, good listeners acknowledge that it is more productive to fully listen and critique later, providing more time for reflection and fostering confidence and trust in the speaker.  Readers should react differently next time they feel the instinct to respond with negative words like "no," "but," and "however" and negative contractions like "can't" or "won't."

Replacing these negative words with expressions such as "Help me understand" prove to be much more useful in encouraging collaboration and productivity. While it may sound simple, adjusting one's language can be quite difficult because it first requires adapting one's mindset.

3. Make it public. All people are capable of creating Yes! Space within themselves by reaffirming ideas with positive thoughts, accepting surprises openly, and silencing internal critics. However, Yes! Space is a fundamentally collaborative experience and the positive exchanges translate to an open, accepting, productive organization.

Employees who work in organizations that value Yes! Space feel valued because they know their leaders and colleagues acknowledge and consider their ideas. Furthermore, the positive reinforcement they receive when they contribute encourages them to continue to contribute in the future.

Importantly, Yes! Space is contagious. The more participants demonstrate the powers of positivity, the more employees witness the benefits and demonstrate the concept's application to others.

Hough stresses the importance of leading by example when creating Yes! Space in the workplace and asks readers to consider their attitudes at work and to increase the frequency of rewarding ideas with praise. Managers can effect positive change—including better retention and higher revenue—simply by saying yes, putting the critic on hold, and making it public.

To apply Yes! Space behaviors at work, employees can:

• Practice positive reactions to ideas, for example, "Yes. Great idea. Please tell me more."
• Remain present in conversations and resist judging an idea while still listening to the speaker share it.
• Praise good work, share excellent work with colleagues, and share superior work with higher-ups.

This article was based on the book "The Improvisation Edge." The book summary is available online at Business Book Summaries.

Networking Basics

The core element of networking is doing for others. No one wants to form a relationship with someone who is only looking to benefit themselves.

The key is to build a network of people before any favors are needed. Networking is not selling, asking for a job, soliciting a donation, or securing funding.

It is referring a service, suggesting a restaurant, picking up a neighbor's mail, answering an email, returning a phone call, bringing a cup of soup to a sick friend, or joining a non-profit board. Networking is an activity, hence the "ing."

It requires active participation to be effective. The goal is to find a group of people who want to see each other succeed, both professionally and personally.

They share knowledge, ideas and are willing to lend a hand. It is all about building the relationships before one needs them. After that, asking for help takes only a phone call.

Everyone gets more done with less effort.

Marketing, Networking, and Selling are interdependent upon each other; without the other two, one is less productive.

Marketing educates the target market and creates awareness.

Networking connects people who can solve problems for each other.

Selling fills a need.

This powerful trio works when all the pieces are played in order. It may be tempting to skip a step or two to get directly to the desired end result, the sale.

This leads to one feeling like they are being sold. It is much easier when the target market is already aware of the services being offered and has received a referral from a trusted source.

By the time the client gets to the buy stage, the due diligence period is over and the decision is made. No hard selling required.

Networking is often confused with schmoozing. Schmoozers are superficial and are only looking for how quickly they can benefit.

Typically they are only heard from when they need something. Networking is relationship based and is mutually beneficial.

While it need not be constant, when the need arises the connection is there. Time is precious and tough decisions are required.

Make time for those:

• who make time for you
• who leave you feeling positive, energized and worthy
• who offer value
• from whom you can derive benefits

Send anyone who falls outside these areas to the acquaintance network. While they are not completely brushed-off, they do not deserve the time and energy required for those within the true network.

This article is based on the book "The Networking Survival Guide." The book summary is available online at Business Book Summaries.

It's the Sale, Stupid.

Salesmanship should be the first, not the last, step in the marketing process. Marketing should lead to sales.

Otherwise, it's just a waste of time and money.

Sales should not be removed from the marketing process, as it is in many companies. Certain steps should be taken so that a company or a person becomes a customer or a client.

These include:

Developing a strategy for winning new business based on value proposition. You have to know that one reason why people should do business with you, and not with your competition.

Let your market know. So you have determined your value proposition. Now let them know every way you can.

Let them love you. Court your market. Let them fall in love with you. Overcome barriers to sales by lowering prices, offering additional services, extending warranties, or giving trial period.

Moreover, don't put the burden of a sale on a prospective client. That's your job.

Ignore the competition and start from scratch.

Never start the marketing process by what the competition does. That limits creativity.

Rather, like Albert Einstein, "think outside the box." Use your imagination to achieve results.

Step beyond existing models and be creative.

This article was based on the book "Your Marketing Sucks" by Mark Stevens. The book summary is available online at Business Book Summaries.

Getting Started with Culture Change

Most executives know how a great culture "looks and feels," but they are uncertain about how to implement one. The task is large, but definitely worthwhile.

Some clues can tell executives when a culture change is necessary or appropriate: the company is being outperformed in its category, key positions experience high turnover rates, satisfaction surveys of customers and employees are consistently low, or the company demonstrates poor or declining financial performance. Typically, any of these issues can result from an ailing culture and can be addressed by changing the culture.

Every company already has a culture, so its executives can begin the change process by letting employees define the culture that already exists. The next step is to identify the culture that will best drive the organization's success.

The ideal is a high-spirit culture where everyone is engaged for the good of the company, aiming for the same goals and helping each other succeed. An amazing transformation in enthusiasm and behavior occurs when values and culture are clearly defined.

For culture change to be successful, the company must involve its best front-line people to ensure the culture becomes tied to what is most important: giving customers such a satisfying experience that they will do business with the company again and again. The top front-line people are eager to inform their leaders, and they command the respect that will lend instant credibility to any changes that are instituted based on their suggestions.

From that initial process will emerge a Values Blueprint that codifies the values the company's people agreed upon and the behaviors that exemplify those values. Subsequently, the values can be explicitly incorporated into daily operations by tying them to expected behaviors and rewarding employees for living them.

The Values Blueprint method of changing culture has been used successfully by many companies to create values-rich cultures. These companies are large and small, for-profits and non-profits, and operate in various industries.

Even though each company defines its own culture using different sets of values, six fundamental principles informed every successful values-based culture change.

A company cannot force culture; it can only create environment. Culture is a culmination of the leadership, values, language, people processes, rules, and other conditions within the organization. Leaders can only create the right conditions and working environment that will help the desired culture to emerge and flourish.

The service a company provides to its customers will never be greater than the service it provides to its employees. A company cannot create a great customer service organization if it treats employees badly. The companies that excel in customer service also excel in how they treat their employees.

Success is doing the right things the right way. Redefining corporate values helps companies make better decisions. Clearly defined values and the expected behaviors based on them empower employees to handle problems personally and immediately and simplify the day-to-day tasks of decision making.

People do exactly what they are given incentives to do. A values-rich culture succeeds when it rewards the behaviors that the company wants, taking into account how those behaviors lead to desired outcomes. Values will be perceived as hollow and meaningless unless the company bases compensation and rewards on expressions of the behaviors that mesh with the values. Hiring, promotion, and appraisal methods must be revised to select people who already display the values that are important to the company.

Organizations will get out of this process only what they are willing to put into it. A company never finishes defining and fostering a values-rich culture; it must always be vigilant against digressions into its old ways. Companies must regularly monitor their progress toward fully implementing the model, developing value-based leadership, and planning for leadership succession.

The desired environment can be built on shared, strategic values and financial responsibility. Conscious action, beginning with determining a set of shared values, can set up the necessary condition for encouraging a culture that will make an organization a leader in its industry. Those values should also be vetted in terms of responsible fiscal management; however, financial concerns should not derail the process in its infancy.

Culture change will likely save money as turnover and training costs are reduced and customers become more satisfied. Values are most critical when making tough decisions, but that is also when they illuminate the way forward.

This article is based on the book "Built on Values" by Ann Rhoades. The book summary is available online at Business Book Summaries.

Leader Detoxification: Strategies for Transforming Toxic Leaders and Organizations

The best solution for toxicity problems is transforming toxic leaders through detoxification. Author Alan Goldman describes detoxification as "the umbrella term for directly addressing dysfunctional decisions, policies, oversights, miscalculations, avoidance behavior, and leadership and follower behaviors that contaminate employees and operations."

Detoxification is a complex process that involves both leaders and their organizations and is a "process that calls for coaches and consultants who are able to identify the multiple sources and players that contribute to toxicity within a system." Without assistance, leaders should refrain from attributing the cause of dysfunctional behavior to a single event or person.

A troubled leader may wield an extraordinary level of toxic influence; however, the detoxification process often uncovers multiple and interdependent sources. Even the most poisonous acts may be symptomatic of orders dispatched from the top of the organizational hierarchy making the source of toxicity less obvious at first glance.

In fact, blaming the most visible and obvious cause and perpetrators and responding slowly to dysfunctional behavior are actually ways to accelerate toxicity and make it extremely difficult to address internally. Goldman says, "The shock and dismay expressed by clients who identify their organizational pain as already reaching into the lymph nodes of their operations is testimony to the need for a detoxification process that incorporates affective coaching and consultation."

The most successful consultations result in collaborations between internal or external consultant and organization, and stimulate positive transformations of both the toxic leader and the company. There are deficits and negative organizational behaviors that must be overcome by toxic clients in order to reach a state appropriate for a positive transformation.

There can be numerous roadblocks, rationalizations, pseudo-interventions, ulterior motives, and acts of sabotage and resistance that can undermine the best of intentions. Organizations that suffer from high levels of toxicity are immersed in systems of deficit thinking and behavior that affect leadership, human capital, operations, and policies.

When deficient systems engulf the workplace, negative organizational behavior becomes the rule. A myriad of dysfunctions can affect relations between leaders and subordinates, research and development, work teams, and customer service, and result in a toxic system.

These can include prolonged conflict, sabotage, the abrupt hiring of mercenary CEOs, and savage overnight re-structurings. These acts all constitute extreme deficits and are on the short list of prime sources of toxicity in many organizations.

This article was based on the book "Transforming Toxic Leaders" by Alan Goldman. The book summary is available on the Business Book Summaries website.

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