TOYOTA MOTOR EUROPE

Culture change by design in Toyota Motor Europe

Mark Adams, Toyota Motor EuropeAnne Landréat, Transformation Consultant

TOYOTA MOTOR EUROPE

What do we know about Toyota ? Ⅰ

Global Automotive Company of Japanese origin.Inventor of ‘Lean’ … Toyota Production System.

Hydrogen Fuel Cell pioneer

Toyota Mirai

The Hybrid car Co

Toyota Prius

TOYOTA MOTOR EUROPE

What do we know about Toyota ? Ⅱ

2015 global sales target (all Brand)… > 10 million World’s largest car-maker Japanese market share 46%

Familybusiness

Akio Toyoda

Strong values & ideals

TOYOTA MOTOR EUROPE

What do we know about Toyota in Europe ?

< 1 million sales/year 2014 market share 4.8%

Factories in UK , France ,Turkey , Portugal

Poland , Czech Rep. , Russia

Headquarters in Belgium

30 Sales & Marketing Companies representing 56 countries

Culture = Opportunity OR Challenge

2005

“ Sales and Manufacturing culture clash within TME“

Toyota Motor Europe is born !

TME + =

Sales & Marketing Company

Manufacturing& Engineering

Company

“Suits” & “Grey jackets” pushed

together

2008Lehman crash Global financial crisis

“ Toyota immune, untouchable“

2009 2010

Source :Daily Mail – Daily circulation 2.1m

Toyota recall crisis USA Congress hearing

“ SHOCK - Toyota could fall - Core quality DNA destroyed “

2011Sales continue to fall in Europe

“ Never thought we would experience this in Toyota. Can we ever recover ?“

2007 2008 2009 2010

Voluntary Resignation

Profits turn to losses

1,261K

808K

2011

“ From new hope to renewed devastation“

Toyota Global Vision Japanese earthquake, tsunami & Fukushima accident2 days later

2012

Didier LeroyTME President & CEO

Engagement

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Why did TME need external help ?

Employees were exhausted

Answers lay in the spirit of Toyota Way, but confidence lost

Years of austerity led to low initiative levels… “play safe”

“PLAY SAFE” = NO SURPRISES NO INNOVATION

TOYOTA MOTOR EUROPE

New Management Direction - Action

Phase 1

Top down subjects

Selected participants

Variable outcome

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VP Forums

“Shared strategy”“Access to Vice Presidents”

Opened up vertical and diagonal communication

>90% appreciation

Provoked creativity among VP presenters

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Toyota ‘World Cafés’

Trigger was “Harnessing diversity”Small voices became

big voices

Single biggest revolution in TME approach to employees. Bottom-up themes emerged : phase 2

TOYOTA MOTOR EUROPE

TME NMD-Action train was rolling

HR motivation

survey

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Culture survey

Control

Collaboration

Competition

Transformation

Agility Initiative

Innovation

Entrepreneurship

Responsiveness

Creativity

TOYOTA MOTOR EUROPE

Plain sailing from here ?

Challenge : how to appeal to all employees. Bring on the designers !

NMDAction

TME Organisation

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The first iteration of many: Hitting the client’s culture

How we had to change course from the very beginning and how it led us to unveil the real needs of our client.

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The real challenge? Change the way people are managed

«The automotive industry is changing and these changes question the way we manage people. Toyota Europe needs to become more agile, creative and adaptative to be able to fight in a highly competitive market. How do we achieve that?» Didier Leroy, Vice-President, Toyota Motor Corporation

From top to bottom and accross divisions, we heard the same thing

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The even more real challenge? (Almost) no one wants to be the one who changes (first)

Where are the corporate rebels?

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The way people are managed = Employee experience = Customer experience

«Customer experience is the brand. And customer experience follows employee experience.» Steve Cannon, CEO, Mercedes Benz USA

TOYOTA MOTOR EUROPE

So, what happens to your brand when your employees’ experience looks like that ?..

Things have to change, don’t they ?..

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And what if you would create new, completely different experiences for employees…

That’s where experience design kiks in (but we still don’t know about it)

TOYOTA MOTOR EUROPE

Then capture what emerges…

TOYOTA MOTOR EUROPE

…and leverage energy and ideas to start transforming the organization from within

TOYOTA MOTOR EUROPE

…by designing processes that help collectively decide what to do and how to do it…

Give everybody a voice, facilitate creativity, quick consensus building and collective action-planning

TOYOTA MOTOR EUROPE

…and then share it to gain support?

That’s what you may get when you ban powerpoint presentations and change the setting…

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How to cross the «big, scary chasm» and reach out to the entire organization?

Everybody is talking about themselves and what great ideas and projects they have…

TOYOTA MOTOR EUROPE

That’s where experience design officially kicks in

Serendipity ?..

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How empathizing with users and co-design unleashed creativity

The turning point

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The brief:• the branding must be so strong that it can survive complete freedom underneath• no glossy corporate touch and feel (it is an employee led initiative)

A brand new brand

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Each group gets its own pictogram

Customizable

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And the brand becomes the roadshow layout itself

Which works at all scales

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And generates positive energy

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DIY

A powerful team building exercise

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Collaboration

Action learning

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Everything has been made to make everybody feel they shouldn’t miss it

Will they come?

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Friday afternoon, it’s 5:30 pm and people are still showing up massively

Well… They came

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End result : almost 90% attendance (our target was 40%)

What «customizable» means

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And will we live up to the level of expectations we had unveiled?

Did we cross the chasm?

?

TOYOTA MOTOR EUROPE

How to help managers to adopt the new behaviors which will support the desired culture?

The next challenge

TOYOTA MOTOR EUROPE

Roadshow after glow

TOYOTA MOTOR EUROPE

Energy levels fell

▽ ▽ ▽

E

Summer holidayRoadshows Workshops

Facilitators

Members

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Innovation group impact

3 projects proposed to TME Board

1 & 2 Proposing taking Toyota core capabilities & marketing to the outside world

3 Proposing outside technologies to be brought into Toyota core

Board reacted angrily to 1 & 2

Damaged appetite for NMD Action activity

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Back on track

2015 strategy

Content & design that captures the imagination

Groups to deliver closure & learnings mid-year

NMD Action to re-focus on Management Behaviours

Roadshow 2015

TOYOTA MOTOR EUROPE

TOYOTA MOTOR EUROPE

VR

Looking to the future

Crisis

Company HR&A

Positive mind-set

Headcount labour cost

Today

Survey solutions

TOYOTA MOTOR EUROPE

New CEO – Consistent understanding

“ Culture change is a process that must be worked at over years.Continue to support the believers, and also to influence the doubters”

Dr Johan Van Zyl

TOYOTA MOTOR EUROPE

Thank You