© Mike Rother TOYOTA KATA 1

What Did Toyota Lose Sight Of?

by Mike Rother, February 2010

It seems likely that as it grew rapidly, Toyota has gotten off its own track.

That is, in its day-to-day management Toyota has deviated too far from the methods and routines, the kata, that made it so successful over the last six decades.

What Toyota may need to do -- it has said as much itself -- is to reapply its basic kata to get itself back on track. That very same kata is something that we still need to learn about, in regard to Toyotaʼs approach.

What is that kata?

Copyright © 2010 Mike Rother, all rights reserved.1217 Baldwin Avenue / Ann Arbor, MI 48104 USA / tel: (734) 665-5411 / mrother@umich.edu

© Mike Rother TOYOTA KATA 2

A DEFINITION OF “MANAGEMENT”

The systematic pursuit of desired conditionsby utilizing human capabilities

in a concerted way

We want to behere

We are here

Currentcondition

Targetcondition

© Mike Rother TOYOTA KATA 3

A MANAGEMENT TASKThe task is not to introduce new techniques, principles, ethics or solutions, but to establish a culture of continuous improvement, adaptation and innovation by practicing a method or behavior pattern that develops a learning / improving mindset.

This is very much like training in sports.

© Mike Rother TOYOTA KATA 4

COMPANIES HAVE TENDED TO FOCUS ON SOLUTIONSFor example: lean manufacturing techniques

A Toyota Technique U.S. Company

But leading people to implementing solutions does not make an organization adaptive and continuously improving:

• Solutions that suit todayʼs problems will not remain suitable for tomorrowʼs challenges.

• It is not solutions that provide sustained competitive advantage...It is the ability of the organizationʼs members to understand conditions and develop fitting solutions again and again

© Mike Rother TOYOTA KATA 5

IMPLEMENTING SOLUTIONSversus

DEVELOPING SOLUTIONS

We want to behere

We are here

Unclear Territory

We do not know in advance what all the steps and solutions will be, thatwill get us to the target condition.(Like the process of landing an airplane from 30,000 feet altitude.)There are only three things we can and need to know with certainty:Where we are, where we want to be and by what means we should develop solutions and maneuver the unclear territory between here and there.

If we believe the way to the target condition is clear, then we are in implementation mode. An implementation mode doesnʼt develop peopleʼs capability to continuously improve, adapt and innovate

planmade

Obstacles

here

© Mike Rother TOYOTA KATA 6

HOW DO YOU CHANGE OR DEVELOPA MINDSET AND ORGANIZATION CULTURE?

From implementing solutions to one of developing solutions

Psychology and brain research are clear:Humans have the ability to alter their mindset. Our brain is equipped for learning new rules and patterns.

© Mike Rother TOYOTA KATA 7

Process

Method

Coaching

Kata learner

Practice

TO CHANGE MINDSET FOCUS ON THESE 3 THINGS

Specify the desired behavior pattern

Guide people in learning the method

People repeatedly apply the method

"With practice, training, and above all method, we manage to increase our attention, our memory, our judgment, and literally to become more intelligent than we were before."

- Alfred Binet

© Mike Rother TOYOTA KATA 8

This means there is a new considerationfor leadership and management:

THE DESIRED BEHAVIOR PATTERNHAS TO BE SPECIFIED

Solution How todevelop solution

OurManagement

SystemSpecifies Leaves open

ToyotaʼsManagement

SystemSpecifiesLeaves open

In order to practice, you need to know what pattern to practice

© Mike Rother TOYOTA KATA 9

In Japan such patterns are called ʻkataʼ, which originally weremovement sequences in martial art. Some common translations or definitions of the word kata are:

• A way of doing something• A pattern, form, routine or method• A training drill

Kata are sets of behavioral rules for people, which are often handed down from master to student over generations.

This is exactly what we are talking about in saying that managementʼs task is to have the organization members practice a specified method or behavior routine.

Upon close inspection Toyotaʼs management approach is characterized by a method - a behavior form - which is taught to all organization members and repeated over and over in daily work.

I call that method the “Improvement Kata.”

KATA

© Mike Rother TOYOTA KATA 10

1 In consideration of a long-term vision, direction or target...2 ...with a first-hand grasp of the current condition...3 ...a next target condition on the way to the vision is defined. (Challenge)4 Moving toward the TC with PDCA uncovers obstacles to be worked on.

VisionCurrentCondition Target

Condition(TC)

2 3 1Next

4Obstacles

The improvement kata is a scientific/empirical methodthat helps people use their ingenuity to achieve challenging objectives

THE IMPROVEMENT KATA

Compare thisapproach with:

Debate about what we should do.(Usually based on opinions)

Looking around for random improvement potential.

Trying to implement predefined solutions.(Lists of action items. Implementing lean techniques.)

1x1 flowIn the factory & for the customer

© Mike Rother TOYOTA KATA 11

BUILDING COMPANY CAPABILITYBy practicing and learning the routine of the improvement kata, many more people in an organization can become involved in continual improvement, adaptation and innovation.

This is a clever and elegant competitive advantage, and defines a leadership approach that may be well-suited for the challenges we face today

NextTarget ConditionTarget

Condition

CurrentCondition

Illustration by Dr. Lutz Engel

© Mike Rother TOYOTA KATA 12

Traditional ManagementExtrinsic motivation

Toyota-Style ManagementIntrinsic motivation

• Establish targets

• Describe solutions

• Provide incentives

• Get out of the way (introduce autonomous,

self-directed concepts)

• Establish targets

• Create, via practice with coaching, the capability in people to developnew solutions

For example, by having people practice the improvement kata

WHAT IS MANAGEMENTʼS TASK?

© Mike Rother TOYOTA KATA 13

AN EMERGING DISCUSSION ON MANAGEMENTWhich may make the learning organization achieveable

Each of these recent books describes a management approach by which an organization can more effectively utilize human capabilities in order to be a continuously improving, adaptive, innovative organization.

by Robert Austin by John Shook by Steven Spearby Mike Rother