Prioritizing Employee Education

Toyota Motor Corporation is the world's largest automaker. It is not merely a representative of Japan but an international, excellent company with influence worldwide. Its production plants operate globally, from developed nations to emerging economies, including the United States, Europe, China, and India. Recently, I had the opportunity to participate in a Q&A session with its Chief Executive Officer, Katsuaki Watanabe. The theme was 'Responding to Globalization, Regeneration, and a Circular Economy.' While rapid business expansion and extended supply lines have led to recalls, he frankly discussed how they conduct thorough investigations into the cause of each incident and deepen collaboration with sales and service departments to address them.

In a nutshell, Toyota's management can be described as a full commitment to the 'education' of its employees, including those at its subcontractors. This approach stands in contrast to American-style, short-term profit-oriented management that prioritizes immediate results and performance. Toyota emphasizes the importance of teamwork, integrating not only its own employees but also its subcontractors into a unified whole.

The Depth of 'Honest, Steady, Thorough'

At the end of the session, I asked President Watanabe to write down his guiding principles. He boldly inscribed 'Honest, Steady, Thorough' in brush calligraphy. Everyone was struck by its Eastern, or rather, Japanese, sensibility. There was no hint of eccentricity; he grounds his management philosophy in principles that have been espoused for ages.

In a different sense, it gave us a fresh perspective. I am not suggesting that everything about Toyota is perfect or superior, but its management stance, built on a single conviction, is something that small and medium-sized enterprises, as well as micro-enterprises, should consider. I hope this serves as a reminder of the importance of living with honesty and diligence.