Toyota's Head Akio Toyoda Discusses Leadership and Succession in Part 2 of a Newspaper Interview

In a decade-long transformation at Toyota, President Akio has been working tirelessly to reduce the number of operating managers, change the leadership structure, and foster a more efficient, agile, and responsive organisational culture.

Akio's approach to leadership has been distinct, as he has never set specific numerical targets since taking the presidency. Instead, he has focused on the quality of decision-making and the organisation's ability to adapt quickly to changing circumstances.

This shift in strategy has resulted in a significant reduction in the number of executives at Toyota. The current board and executive officer count stands at a total of 14 people.

Akio has also redefined the concept of management at Toyota, with the president now overseeing the entire company, rising beyond a single function.

In his search for an ideal successor, Akio emphasises the importance of finding someone who can bring fresh ideas to the table. He wants a leader who can present an idea that he couldn't think of and make him say, "That makes perfect sense."

Akio's criteria for the perfect successor extend beyond intellect. He seeks a leader with a spirit of "hating to lose" and one who never gives up.

In terms of the leadership structure, Akio has removed the title of executive vice president to allow for more freedom in decision-making. He believes that people should be able to control the "elephant" without the limitations of titles.

Akio has also given the roles of "Banto" and "Oyaji" to Koji Kobayashi and Mitsuru Kawai, respectively. These roles reflect their older age, experience, and higher positions within the company. Akio considers these roles as mirrors of himself, the president.

Kobayashi, who is 71 years old, has worked with Akio for over 30 years, including a time when Kobayashi served as Akio's boss. Kawai, also 72 years old, has a strong understanding of one of Toyota's genba that Akio cherishes, having worked solely in the genba of monozukuri for over 50 years.

Akio believes that the roles of "Banto" and "Oyaji" have the authority to choose who they work for. He does not want to hand over his position to someone who is envious or thinks they are the best.

Akio attributes Toyota's forecasted operating income of 500 billion Japanese yen for the current fiscal year to the hard work of Toyota's 370,000 employees and their families. He emphasises that the people closest to the things, customers, and the market should have the biggest say, and their opinion should be respected the most.

Akio aims for this personnel change to be thought of as a "change in role" rather than merely a "change in title." He wants the people in top management positions to see their "title" as a "role."

As Akio approaches the end of his 11-year tenure as president, he reflects on his initial belief that his term would have been completed in his first year. Yet, he remains committed to his vision for Toyota's future.

Toyota's Head Akio Toyoda Discusses Leadership and Succession in Part 2 of a Newspaper Interview