Toyota to update organizational structure to drive business innovation

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Toyota Motor Corporation (TMC) intends to change its organizational structure in April to further accelerate decision-making, strengthen management oversight and spur business innovation. To promote its overarching goal of making ever better cars by continuing to develop a talented workforce, TMC made substantial changes to its structure in April 2016 to create a company built… Read more

Toyota Motor Corporation (TMC) intends to change its organizational structure in April to further accelerate decision-making, strengthen management oversight and spur business innovation.

To further its overall goal of making ever better cars by continuing to develop a talented workforce, TMC made substantial changes to its structure in April 2016 to create a company built around a people-based organization. products rather than functions. Since then, she has pursued commercial innovation, for example by creating the EV Business Planning Dept. (an internal company responsible for the planning and development of electric vehicles) last December, and by creating the Emerging-market Compact Car Company (a company responsible for compact vehicles with the highest priority given to emerging markets), in January of This year.

These changes have been spurred by the vital awareness that sustainable growth cannot be achieved without addressing two major challenges that the company faces as it continues to grow. The first is how to develop a sufficient number of people capable of leading with quick judgment, quick decisions and quick action through genchi genbutsu (on-site learning and problem-solving), as the changes facing the business require a different way of thinking and acting. The second is how to reduce the time and effort spent on cross-functional coordination and establish work processes that allow the company to focus on making ever better cars for its customers.

Taking into account the additional issues that have emerged as company-wide efforts have been made over the past year since last April to proceed with business innovation, TMC plans to implement the changes outlined. below in April of this year.

“This structural change is not an answer but an opportunity,” said TMC President Akio Toyoda. “By bringing together all efforts and minds, I would like to make this an opportunity to strengthen our workforce and further promote the making of ever better cars. Let us come together to create work processes that will allow us to remain viable at a time when we produce and sell 10 million vehicles a year, being constantly aware that there is always a better way, ”he added .

To further accelerate decision-making and strengthen management oversight:

  • Further clarify that board members are responsible for decision making and management oversight and that operations officers are responsible for operational execution.
  • Further reduce the number of members of the board of directors, from a total of 11 to nine directors *, including three outside directors.

* At the end of the next general meeting of shareholders.

To stimulate business innovation:

  • Establish GAZOO Racing Company (an internal company)
    • Establish a structure capable of accumulating technologies and techniques acquired through motorsport, as first-hand knowledge for the “driving seasoning” of vehicles, as well as the development and introduction of vehicles that provide a real “breathtaking excitement”.
  • Reorganize and integrate regional business units
    • Unite regional business units by reorganizing and integrating Toyota NO.1 and Toyota NO.2 into a “Business Planning & Operation” business unit to coordinate as a united regional function with internal product-based companies.
  • Partially review the roles of head office and business units based on regions and products
    • To enable in-house product-based companies to complete the work from planning to production, revise function structures, including product concept planning, production planning, and production engineering.

View the full press release here


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