Taking the Wheel as Toyota Skids

THE Japanese phrase genchi genbutsu translates as “go to the spot” — in other words, “see it for yourself.” Few executives embrace that philosophy as completely as Akio Toyoda, who is slated to become the next president of the Toyota Motor Corporation.
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Akio Toyoda is not expected to turn the company upside down. Toyota is governed by a series of management principles that collectively represent the “Toyota Way” — practices that focus on consensus management, continuous production improvements and in-depth investigations before any strategic shifts occur.
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AS Mr. Toyoda prepares to become president, one critical change awaits: opening Toyota’s management doors to outsiders.

Despite its rapid growth in the United States and Europe, and an increasingly global viewpoint, Toyota remains a Japan-centric company, dominated by Japanese managers, who have yet to give significant, lasting authority to their foreign counterparts.

Two Americans who rose to high-ranking positions this decade — James E. Press and Gary L. Convis — left for top jobs at other companies, Mr. Press at Chrysler and Mr. Convis at the Dana Holding Corporation, an auto supplier

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Despite the gloom surrounding the industry, Mr. Toyoda has the opportunity to “take everything that looks bad, and use it as an opportunity to learn,” Professor MacDuffie said.

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Bailouts for Bunglers

Question: what happens if you lose vast amounts of other people’s money?

Answer: you get a big gift from the federal government but the president says some very harsh things about you before forking over the cash.

Am I being unfair? I hope so. But right now that’s what seems to be happening.

Just to be clear, I’m not talking about the Obama administration’s plan to support jobs and output with a large, temporary rise in federal spending, which is very much the right thing to do. I’m talking, instead, about the administration’s plans for a banking system rescue — plans that are shaping up as a classic exercise in “lemon socialism”: taxpayers bear the cost if things go wrong, but stockholders and executives get the benefits if things go right.

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Six companies born during downturn...

• Procter and Gambler
• IBM
• General Electric
• General Motor
• UTX (United Technologies Corporation)
  
• Fed Ex
  

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