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Toyota is the success story of 20th century automobile manufacturing. Yoshio Ishizaka, former president of Toyota US and now a senior advisor to the board of Toyota Motor Corporation, tells The Manufacturer about his vision for the 21st century

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Yoshio IshizakaIn TWSM, Ishizaka talks about the vision and the mission. The vision, he says, is to become the most successful and respected car company in each market around the world by offering customers the best purchasing and ownership experience. He then sets two missions for every employee to materialize the vision, to create lifetime customers by adopting a customer-first strategy, and to become the sales and marketing radar for all of Toyota.

Toyota is the success story of 20th century automobile manufacturing. Yoshio Ishizaka, former president of Toyota US and now a senior advisor to the board of Toyota Motor Corporation, tells The Manufacturer about his vision for the 21st centuryT oyota is on the verge of overtaking General Motors as the worlds largest automaker. Having displaced Ford as No. 2 in 2003, Toyota has continued to grow while GMs market share has been falling. Towards the end of 2005, Toyota announced its intention to produce 9.06 million cars in 2006. General Motors prefers not to publicly predict its output, but industry consultant CSM Worldwide estimates it to be 8.92 million vehicles. In 1963, when Ishizaka joined Toyota, the company sold 24,380 cars outside of Japan. Last year, he says, we sold 4.95 million. I have been witness to amazing growth over the span of my over 40 years with Toyotas overseas operations.Figures are fascinating, of course, but much has been said already about the Toyota Production System (not least in this magazine). So, at the end of last year, when Yoshio Ishizaka spoke at length about Toyotas achievements and ambitions at the Cambridge-MIT Institute Distinguished Lecture Series, The Manufacturer caught up with him as he stepped down from the podium and into the future.But first, lets look at the framework on which the future is built. Former Toyota president Fujio Cho introduced The Toyota Way in 2001an initiative to help employees understand and share the history and spirit surrounding the companys most important values, or, as Ishizaka puts it, Toyotas fundamental DNA. The Toyota Way is built on two pillars, continuous improvement (kaizen), and respect for all people, concepts that are at the heart of Toyotas operations. From this Ishizaka developed The Toyota Way in Sales and Marketing. TWSM is unlike other functional Toyota ways, such as the Toyota Production System, he says. The concept and methodology of the Toyota Production System was established mainly in Japan, and then transferred to other countries. When it comes to The Toyota Way in Sales and Marketing, however, we believe that the know-how and methodology is created and executed in each individual country and should be shared between countries.In TWSM, Ishizaka talks about the vision and the mission. The vision, he says, is to become the most successful and respected car company in each market around the world by offering customers the best purchasing and ownership experience. He then sets two missions for every employee to materialize the vision, to create lifetime customers by adopting a customer-first strategy, and to become the sales and marketing radar for all of Toyota.To help implement The Toyota Way, Ishizaka established the Global Knowledge Center within the University of Toyota, a training division of Toyota Motor Sales USA, in July 2002. He chose the name carefully to avoid the connotations of academy or school, and he set it up outside of Japan, he says, because I believe the success stories in overseas markets should not be pushed and controlled from Japan.Of the GKCs various programs, he highlights work place vitality, invisible competitiveness and providing an environment (Ba in Japanese) for continuous improvement. Invisible com-petitiveness is an interesting one. Visible competitiveness includes factors such as the sales price or the brand which customers consider when they make a purchase, he says. On the other hand, invisible competitiveness is the actual capacity of companies and employees in the area of R&D or production which customers do not see. Invisible competitiveness consists of production lead time, development speed in R&D, production quality, and the capacity of Group companies and parts suppliers.One of the strengths of Toyotas invisible competitiveness is production quality, he continues. We often say quality is built-in within processes and the next process is a customer. This means that the quality of a product should be insured within each employees process on the production line, so no defects are passed on to the next process. This is completely different than the generally accepted philosophy of having only full-time inspectors examine a product at the final stage of production. This is why we have the so-called stop rope on our production lines. If there are any problems in quality . . . any of our employees can pull this switch to stop the production line.Much of what Ishizaka says about Toyota involves the visual, but when it comes to the future of mobility, we move from visual to visionary. April 2002 saw the creation of Toyota Global Vision 2010, which identifies four areas of innovation that are set to have a dramatic effect on the company and its products. The first, true to the earth, involves Toyota becoming a leader and driving force in the reduction, reuse and recycling of resources by implementing the most advanced environmental technologies. Comfort of life sees Toyota striving to create an automobile-based society in which people can live with ease, and in safety and comfort. Excitement for the world is how Toyota will promote the appeal of vehicles throughout the world and strengthen Toyotas brand image, and respect for all people reflects the aim to be a truly global company that earns the respect and support of people all over the world.True to the earth recognizes that vehicle ownership is forecast to grow rapidly, prompting concerns about traffic accidents, global warming and air pollution. Our responsibility as an automobile manufacturer will grow accordingly, says Ishizaka. The main challenge is how to achieve sustainable development. Toyotas approach to the challenge of what Ishizaka calls sustainable mobility can be summed up in two words; zeronize and maximize. The first word may be unfamiliar, even to scholars of English, but is an efficient way of describing the quest for zero negative impacts on our environment and society. Maximize, on the other hand, refers to the search for maximum positive impact on personal enrichment through comfort, fun and excitement. Opposite ends of the spectrum, you might justifiably think, and this conundrum is not lost on Ishizaka. The main task is to build environmentally-friendly vehicles that are of high quality, deliver optimal performance and that please the customer, he says. Aware that the increase in automobile ownership throughout the world will roughly double consumption of gasoline and diesel fuel by the year 2050, with an inevitable increase in CO2 emissions, he acknowledges that, as the central player in the transportation industry, car manufacturers will take on a very important role.Hybrid vehicles may be the current flavor of the month, and many would say a good thing, too, but fuel efficient vehicles are only part of the solution. Ishizaka recognizes that the industry has focused too narrowly on tank-to-wheel efficiency, when the real focus should be on well-to-tank efficiency. The tank-to-wheel efficiency of a typical gasoline-powered car is only 16 percent, he points out, meaning that 84 percent of its energy potential is wasted in things like heat and friction, but on the other hand, we also need to remember that carbon dioxide arises from oil refineries as well as from automobiles.Manufacturing the vehicles is another issue. Toyotas research shows that the production of fuel-cell vehicles consumes more energy than conventional vehicles, so there needs to be a structural change in the automobile industry and in the fuel and materials industries.But hybrid technology, Ishizaka believes, is crucial to the development of the ultimate eco-car. The Toyota Prius, of course, was the worlds first mass-produced gasoline-electric hybrid car, (launched in Japan in 1997, and then on the world market two years later), although it must be said, not the only one now. Beyond that, Ishizaka believes, to provide an ideal car society for the future, we must consider and aim for the following; no CO2 from well to wheel; personalized mobility (one car per person, in much the same way people own mobile phones today); intelligent mobility, a car society that has eliminated accidents and traffic jams through IT and ITS (intelligent transport systems), and finally, bridging the mobility divide (a car society where the physically challenged can drive cars, and all people on every single continent can enjoy the convenience of mobility).Which brings us (at last, you may think) to the image of the i-swing car on the cover of this magazine. The i-swing is a new personal mobility vehicle that allows drivers to express their individuality, says Ishizaka. Well, maybe so, but whether you swing or not, in Massachusetts, in January, I think Id rather be in a 4X4.

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Develop Your Personal Vision & MISSIONConsider 10 to 30 years..Use the following 5 step plan.1.Past success4 or 5 2.Core values..Who you are, your priorities3.Make a list of the ways you could make a differenceYou could best contribute to..4.Your goals, priorities in life5.Write your personal vision and mission statements

LEARNING OBJECTIVESUnderstand how vision and mission fit into the planning-organizing-leading-controlling (POLC).

Understand the roles of vision, mission

Develop statements that articulate organizational mission and vision.

Develop your personal vision and mission.

MissIon & Vision as P-O-L-C ComponentsPlanningOrganizingLeadingControllingVision & MissionOrganization DesignLeadershipSystems/ProcessesStrategizingOrganiz. CultureDecision MakingStrategic Human R.Goals & ObjectivesSocial NetworksCommunicationsGroups/TeamsMotivations

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Goals & ObjectivesStrategy Vision & MissionVission & Mission in the Planning Process

The strategy is how the firm aims to realize its vision and mission.

Goals and objectives are the indicatorsof how well the strategy is succeeding

Roles Played by Vision & Mission StatementsCORE VALUES

Companies that enjoy enduring success have core values that remain fixed while their business strategies and practices endlessly adapt to a changing world.

Core values come from the past.Core Values

Core ValuesA small set of timeless guiding principles Only a few values can be truly core

To identify the core values, determine the values that are central and passionately held

Values must stand the rest of time, they do not change with the market, companys change markets to remain true to core values.

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Core ValuesGeneral Electric "I believe that our reputation for integrity and honorable dealings is our most important asset. Your GE team believes that strong integrity is the foundation of great performance. I hold myself to a high standard, and I know you will do the same." Jeffrey Immelt, Chairman & CEO

11Integrity:1 the quality of being honest and having strong moral principles; moral uprightness: he is known to be a man of integrity.2 the state of being whole and undivided: upholding territorial integrity and national sovereignty. the condition of being unified, unimpaired, or sound in construction: the structural integrity of the novel.

Core Values

Google Were building a culture rooted in transparency, innovation, and scale. Sergey Brin & Larry Page

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Core ValuesThe Soul of DellDell's success is built on a foundation of personal and professional integrity. We hold ourselves to standards of ethical behavior that go well beyond legal minimums. We never compromise these standards and we will never ask any member of the Dell team to do so either. We owe this to our customers, suppliers, shareholders and other stakeholders. And we owe it to ourselves because success without integrity is essentially meaningless. Michael Dell, Chairman

13Stakeholder:a person with an interest or concern in something, esp. a business.

Core Values of a Sample School of ManagementHonesty & Integrity, We are committed to promoting the highest standards of honesty and integrityMutual Respect, We are committed to fostering an environment in which every member of our community nurtures the spirit of trust, teamwork, openness and respectPursuit of Excellence, We are committed to creating an environment where all members of the community pursue the highest possible level of academic performance and personal development.Personal Accountability, We are committed to fostering an environment where every member of the community understands and accepts responsibility for upholding and reinforcing our values

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Personal Core Values Answer the following questions:

What core values will you personally bring to work?

What would you tell your children are the core values at work and that you hope they will hold at work someday?

If you awoke tomorrow with enough money to, would you continue to live those core values?

If you start a new organization, what core values would you build into the new organization?

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Why are Core Values Important?There is a need for alignment between personal values and organizational values.

When there is misalignment, bad things usually happen.

When there is alignment, your potential increases significantly

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Roles Played by Vision & Mission StatementsCORE VALUES

Leadership and VisionEffective Leaders are not simply care takers of the status-quo

Effective Leaders move themselves and influence followers to move with them by their commitment to a compelling vision of the future!

See things the way they can be. Dream the big dream; unleash your spirit. See the organization in your heart that you truly want to create. A bold, daring, super-sized vision, even if only partially achieved, yields greater rewards than a small, wimpy vision fully achieved. Fully realize that your team must buy into you as a leader before they buy into your vision. They must believe and trust in you to believe and trust in your vision. You may need to do some repair work to establish yourself as a caring and competent leader before you start creating and selling your vision. You will need to connect with their hearts before connecting with their heads. (People do not care how much you know until they know how much you care.) This is considered in the final element, The People (7 elements of high performance.)

Value of VisionBreaks you out of boundary thinkingIdentifies direction and purposePromotes interest and commitmentPromotes organizational focusEncourages openness to unique and creative solutionsEncourages and builds confidenceBuilds loyalty through involvement (ownership)Results in efficiency and productivity

19Your vision ultimately becomes your organizations direction, objectives, priorities, strategies, and tactics. It is that magical and that important.

Creating VisionDraw on the beliefs, values, mission, and environment of the organization Describe what you want to see in the future Keep it simple Be specificBe positive and inspiring

Remember, there are no rules while you create a desired future state. However, dont deal in pure fantasy. There is a difference between a vision and a delusion. Stay somewhat grounded. You must see things the way they are now in order to visualize the way they can be. You must build from a foundation of realism, acknowledging your organizations current strengths, weaknesses, opportunities and threats. However, from that foundation, let your vision soar!

Grab hold of the future, bring it into the present, and then go about creating it. Give yourself and your employees something to be proud of. Find a voice to express the common dreams, emotions, potential and needs of your team. Let your vision inspire, motivate, and galvanize your team. Small visions do not stir the soul. Give people a reason to follow, something to shoot for. Make the vision intoxicating -- something that captures their imagination. Show them the finish line in bright, Technicolor detail. Sell more to their hearts than to their heads. People change when their feelings change, not when merely their thoughts change. Powerful visions unite groups and take them to new heights and places.

STKBAL GKLERDEDR

KEMAL ATATRKHave a Vision

Have a VisionIdentify direction and purpose

Set standards that reflect high ideals and a sense of integrity

Are persuasive and credible

Are well articulated and easily understood

Challenge personnel to align their energies in a common direction

Common characteristicsof successful visions

Effective visions also help lead you, the leader keeping you motivated and challenged.Creating and living an empowering mission statement has a significant impact on the way we spend our time, said Stephen Covey in his book, First Things First. When we talk about time-management, it seems ridiculous to worry about speed before direction, about saving minutes when we may be wasting years. Vision is the fundamental force that drives everything else in our lives.

Why This MattersPeople will not follow those without visionNo matter how bad it is for the enterpriseYou, as leader, are expected to know the wayVision improved performanceCreates focused effort among followersCreates greater level of intensity of effortVision creates dependencePeople need to know where theyre going

Whats in a vision?GoalsDirection and scopePrioritiesGive weight to goalsThese are driven by the core ideologyRequirementsAnticipating skills and tools that will be neededImplicationsPlans for the next steps

Whats Not in a VisionNot the mission statementShould say more about where the organization has come from and is striving to become; tell a storyIts not the plan in detailVision sets the goals, but doesnt set detailed plansIt shouldnt just exist to respond to threatsVision shouldnt be created under the gunIt doesnt have to be dramaticIt should simply meet the organizations needs

Vision TypesEvolutionary vision vs. revolutionary visionThere are timesWhen there is no need for radical changeEvolutionary change can keep firm on directionBut when radical changes hit the environmentA total reversal in direction might be neededWhen the adaptive challenge calls for reinventionThink AppleEastman Kodak

McDonald:"McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile." Ford:Ford Motor: Ford will democratize the automobileSony:Sony:Become the company most known for changing the world-wide poor quality image of Japaneese products

Vision Statements

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A Vision is defined as a short statement providing a broad, aspirational image of the future.Vision Statements should be timeless and if successful will be remembered and become synonymous with your establishment.

Roles Played by Vision & Mission StatementsCORE VALUES

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Is the broad definition of how to reach the organizational visionTARGET MARKET,GEOGRAPHIC DOMAIN, CONCERN FOR SURVIVAL AND GROWTH,PROFIABILITY, PHILOSOPHY, PUPLIC IMAGEMission statement

Sample Restaurant Vision Statement

Become the favorite family dining restaurant chain.

Our mission is to become the favorite family dining restaurant in every neighborhood in which we operate. This will be accomplished by serving a variety of delecious tasting and generously portioned foods at moderate prices. Our restaurants will be clean, fun dedicated and casual. Our guess will be served by friendly,knoweledgeable people that are dedicated to providing excellent customer service.

Sample Restaurant Mission Statement

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Keep it between 3-60 words.

Answer the following;What are the oppurtunities or needs the organization adresses?What does the organization do to adress those needs?What principles and values guide the organization?

Avoid jargons and buzzwords,keep it clear and easy to understand.

Outline the organizations competetive advantages,business definition,behavioral standarts and desired competitive position.

Allow company-wide input when creating it,botom up results in greater commitment.Writing a Mission Statement

The Mission StatementEvery company has a Mission Statement. But they are very difficult to write - they should short, clear, vivid, inspiring and concise without using jargon, complicated words or concepts. A Mission Statement is generally included in documents such as Business Plans and Staff Handbooks and can be described as a cross between a company or corporate slogan, or tagline, and an executive summary! A highly successful Mission Statement is both memorable and engaging. A combination of both a company's mission and a company's vision of the future may be included in a Mission Statement. No wonder a Mission Statement is hard to write and there is so much confusion between a Mission Statement and a Vision Statement!

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CommunIcaTIng VISION & MISSIONSTATEMENTSCommunicate oftenCreate messages that relate to the audienceCreate messages that inspire actionUse itLive itBe real

Develop Your Personal Vision & MISSIONConsider 10 to 30 years..Use the following 5 step plan.1.Past success4 or 5 2.Core values..Who you are, your priorities3.Make a list of the ways you could make a differenceYou could best contribute to..4.Your goals, priorities in life5.Write your vision and mission statements

Actions/TasksObjectivesGoalsVision & Mission THE VISIONARY GOAT

Core ValuesOutputsOutcomes

The Visionary GOAT