Chapter 7: Principle 1: Base Your Management Decisions on a Long-Term Philosophy, Even at the Exp...
Chapter 7: Principle 1: Base Your Management Decisions on a Long-Term Philosophy, Even at the Expense of Short-Term Financial Goals
por Saba Katcharava
1. Overview
2. A Mission Greater than Earning a Paycheck
2.1. that short-term profits are not always the first goal?
2.2. The purpose is so we can reinvest in the future, so we can continue to do this. That s the purpose of our investment. And to help society and to help the community, and to contribute back to the community that we re fortunate enough to do business in.
2.3. Total Budget Control System in which monthly data is used to monitor the budgets of all the divisions down to the tiniest expenditure.
2.4. They are working within a long-term philosophical mission to bring the company to the next level. The company is like an organism nurturing itself, constantly protecting and growing its offspring, so that it can continue to grow and stay strong.
3. Doing the Right Thing for the Customer
3.1. In contrast, Toyota is aligned around satisfying the customer
3.2. The executive coordinators from Japan really were here not only to guide the company s development but the development of the people.
4. The NUMMI Story: Building Trust with Employees
4.1. the key was building trust with the workers:
4.2. By helping to raise the level of manufacturing at GM, they were helping society and the community, as well as creating high-paying manufacturing jobs for Americans.
5. Don t Let Business Decisions Undermine Trust and Mutual Respect
5.1. Toyota understands that maintaining the jobs of associates is part of its obligation to the community and society.
5.2. wanting a Mexican truck bed plant
5.3. human resources are our most important asset;
5.4. Insteadof closing it down, Toyota has helped TABC expand its operations to build new trucks, making it the first newvehicle assembly operation to build trucks in California since NUMMI opened in 1984.
5.5. Principle 1: Base your management decisions on a long-term philosophy, even at the expense of short-termfinancial goals.
6. Use Self-Reliance and Responsibility to Decide Your Own Fate
6.1. One of the key differences is that Toyota always chose a path of self-reliance and let s do it ourselves, rather than relying on outside business partners.
7. Toyota s Mission Statement and Guiding Principles
7.1. The true mission, according to this statement, has three parts:
7.1.1. 1. Contribute to the economic growth of the country in which it is located (external stakeholders).
7.1.2. 2. Contribute to the stability and well being of team members (internal stakeholders).
7.1.3. 3. Contribute to the overall growth of Toyota.