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CEO_Leadership_Lessons from Toyota

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					      Leadership
- Lessons from Toyota
                  Liak Teng Lit
             Chief Executive Officer
              Alexandra Hospital
                11 August 2007




                                            1




    Leadership :
Bullshit or Fertilizer ?
             To be presented at
  Public Service Human Capital Conference
               21 August 2007




                                            2
3




4
     Production (Toyota & Lexus brand) in Thousands
  9000
                                                                                                                 8,093
  8000                                                                                                   7,361

  7000

  6000                                                                                           5,180
                                                                                 4,890
                                                                                         4,424
  5000
                                                                         3,802
  4000                                                           3,377

  3000                                                   2,336

                                                 1,609
  2000
                                           478
  1000
                              23     155
         0   15     3    12
     0
      1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2006




                                                                                                                         5




                         Brief History of Toyota
             1937       Toyota Motor Co Ltd founded by Kiichiro Toyoda
             1950       Financial crisis, labour dispute, Kiichiro resigned
             1957       First export to USA
             1989       Lexus launched
             1997       Hybrid car Prius launched
             2002       Toyota entered Formula 1
             2006       Toyota overtook GM to be No 1 producer




Model AA (1936)     Corolla (1966)           Lexus LS400                            Prius                           F1

                                                                                                                         6
                   Toyota Leaders

1924   Sakichi Toyoda               Automatic Loom

1937   Kiichiro Toyoda              Toyota Motor Co

1950s Taiichi Ohno                  Toyota Production System

1950s Shotaro Kamiya                Toyota Motor Sales

1989   Yukiyasu Togo & Ichiro Suzuki Lexus

1997   Fujio Cho                    Hybrid car




                                                               7




              Seagull Leadership

                         • Fly in from afar
                         • Look good
                         • Make lots of noise
                         • Shit on everyone
                         • Fly off in glory into the sunset




                                                               8
    Toyota (Home Grown) Leadership
    Grow leaders who thoroughly understand the work,
    live the philosophy and teach it to others




    Taiichi Ohno                  Fujio Cho            Katsuaki Watanabe




                                                                           9




                                              Builder of Learning
Bottom-up            Facilitator                Organisations
              (you’re empowered)               (here is our purpose
                                              and direction. I’ll guide
                                                   and coach)




                   Bureaucratic                    Task Master
                    Manager                   (here is what to do and
                   (follow the rule!)              how to do it)
Top down




             General management               In-depth understanding
                  expertise                           of work
                                                                           10
        Culture of Collaboration
Many Toyota leaders have worked on the production
line and have sold cars.
Therefore leaders respect people on the frontlines and
people at all levels contribute to decision.

              - From 0 to 60 to World Domination
                NYT Magazine Feb 2007

Jidoka (自働化) - Autonomation with a
          human touch
              • Mistake proofing
              • Free worker from machine
                                                         11




          Putting Customer First
The priority should be in the order of the customer,
then the dealer, and lastly, the manufacturer.
                   - Shotaro Kamiya
                     President
                     Toyota Motor Sales Company




                                                         12
Thoroughly Understand Customers’ Needs




              Genchi Genbutsu in Action

                                                    13




  Genchi Genbutsu (现地现物) in Action



         Taiichi Ohno : Circle on the floor




         Dr Shoichiro Toyoda : Hand in the transmission
                               pan




                                                    14
                Hansei (反省)
Observe …. Without pre-conceptions and with a blank
mind. Repeat “Why?” five times to every matter.
                     - Taiichi Ohno




                                                      15




  Master of Sun Tze’s Art of War ?
   • Turning adversity into advantage
   • Avoid direct competition when weak
   • Collaborating with competitor
   • Leapfrogging competition (Lexus, Hybrid)
   • Winning without fighting




                                                      16
                       • Focusing on the long term
                       • Jumping beyond the current trend




                                                       17




      Bold Ideas, Careful Action
                           - Kiichiro Toyoda




         Lexus LS400                   Prius


        Slow Start, Fast Implementation
• Leadership commitment to long-term audacious goal
• Make decisions slowly by consensus
• Thoroughly considering all options
• Implement decisions rapidly                          18
Respect Your Extended Network of
  Partners (Abundance Mindset)
 • Find solid partners and grow together to mutual
   benefit in the long term
 • Partnering with suppliers maintaining internal
   capability
 • Partners selected on basis of past relationships
   and proven performance, not price
 • Sharing of sensitive information




                                                      19




 Developing People & Team That
  Follow Company’s Philosophy
  • Careful hiring
  • Ramping up gradually & systematically
  • Incalcate philosophy, values, culture (TPS)
    before empowerment




                                                      20
  Continuous Improvement Mindset
   • Deliver customer value
   • Reduce waste (MUDA)
   • Aim for perfection
   • Presumption of imperfection
   • Do what we can, with what we have, now
   • Kaikaku (radical improvement)
   • Kaizen (continuous incremental improvement)




                                                      21




           Presumption of Imperfection
                          - FastCompany Jan 07

Please talk to us about your problems so we can all
work on them together.
                          - Fujio Cho
                                                      22
        The Learning Organisation
“People don’t go to Toyota to ‘work’. They go there
to ‘think’.”
                         - Taiichi Ohno


Toyota’s factory only looks like a car factory. It is
really a big brain - a kind of laboratory focused on a
single mission : how to make car better.

                          - FastCompany Jan 07


                                                         23




            Quality Improvement



  BIG Show @ GM, Ford, Chrysler
Episodic, goal-oriented, something special led by
special group, gurus, consultants.


                 Quiet Work   @ Toyota
Every single department, every single day by
workers themselves.

                                                         24
        Kaizen Basis : Standardization
• Standards are created by individuals performing the role
• Standards are dynamic, and not everything gets
  standardised
• A standard is similarly an established best known method
  or practice followed until a better way is discovered, tested
  and accepted



      Standards are there to be changed
                         - Yohio Shima
                          Director, Toyoda Machine Works
                                                              25




           Internalising Kaizen (改善)
   In the pool, I will think about doing strokes. Everytime
   I take a stroke, I think about where my hand is.

                          - Jim Press
                            President, North American Sale
                            Toyota


   When I am mowing the grass, I’m trying different turns
   to see if I can do it faster.
                          - Howard Artriz
                            Assembly Manager

                                                              26
Before Restructuring (2000)




                              27




Before Restructuring (2000)




                              28
Episodic Compartmentalised “Illness” Care

   Pre-illness                    Illness           Post-illness




• Vaccination                • Clinics, hospitals   • Home Care Services
• Public Health Education                           • Nursing Homes
• School Health
• Workplace Health Promotion

                                                                    29




                     Public Image of AH
        • One-star hospital
        • A historical site
        • Underground tunnel
        • Hospital for the old and poor
        • Cheap
        • 39% would not recommend hospital to others




                                                                    30
                  31




Inpatient Wards

                  32
                                   33




   Leadership Team
• Diversity
• Shared value, Trust
• Deep understanding of business




                                   34
                   Our Priority
 Our patients are the most important people in this
 hospital. We put the well-being, interests and
 convenience of our patients before our own in
 everything that we do.




                                                       35




Patients’ Definition of A Good Hospital
• Respect patient’s dignity
• Provide Information
• Facilitate access to integrated care and services
• Deliver consistent, good quality care and services
• Provide cost effective care




                                                       36
Head-to-Toe Lifelong Anticipatory Healthcare

 Pre-illness                     Illness                       Post-illness




 Health Maintenance              Illness Care                   Health Recovery
 • Vaccination                   • Cost effective, efficient    • Skills-for-life
 • Public Health Education          care                        • Homecare support
 • Health Screening                 - systems processes         • Follow-up support
                                    - clinical pathways
 • Workplace Health promotion


                                                                               37




 Geriatric Medicine             General Medicine




                                                                 Radiology

 Orthopaedic Surgery            General Surgery

                                                                               38
Diabetes Centre         Health for Life Centre          Dental




                  Eye                  Ear, Nose & Throat

                                                                 39




                                           Which is quality ?



                              Toyota




                                                                 40
                             Ferrari
  Organisational Management Systems
  ISO 9001:2000        Integrated QEMS
                       ISO 9001/ISO 14001                     6 Sigma Programme
          ISO 14001      People Developer Standards           Balanced Scorecard
                                                              Toyota Production System
           ISO 18000      Singapore Quality Class
                           Joint Commission International
                                                                             Continuing
                                                                             Business
     FOUNDATION INTERMEDIATE ADVANCED
                                                                             Excellences
  Customer Feedback                                   Customer
                                                                             Initiatives
       System            Voice of Customer
                                                      Loyalty Programme
                         Process Mapping
Process Measurement                                 Process Management
                        Management & Planning       Statistical Tool
                        Tools
  5S House-keeping       -Strategic Business       Innovation & Creativity
                          Planning                 Programmes
People Participation       SWOT Analysis           -WOW @ AH
Programmes                 Patient Satisfaction    -Fun @ AH
-Quality Circles            Survey
-Staff Suggestion       -Leadership               Strategic HR Planning
 Scheme                  Development              -Talent Scouting/Growing/ Retaining
-Support Group           Programme


              Tools and Initiatives                                                     41




          Customer Feedback
      •     Management walk about
      •     Feedback forms

      •     Toll-free telephone

      •     Telephone survey

      •     Focal group discussions




                                                                                        42
                 Focal Group Discussion with Patients
                                                                43




Our Performance So Far After Restructuring
 Year              2001    2002     2003     2004     2005     2006
 Inpatient
 Admissions      14,574   15,568   16,504   19,224   20,791   20,084
 % Occupancy
                   67%      67%      65%      79%       81%     80%
 Inpatient and
 Day Surgeries    9,626   14,495   17,581   19,848   21,296   23,067
 % Day
 Surgeries        37.7%   53.1%    60.5%    60.6%    64.5%    67.0%
 Emergency
 Dept Visits     41,689   43,402   48,508   46,084   56,094   61,330
 Specialist
 Outpatient      83,038 108,697 126,177 145,765 176,812 218,118
                                                                44
                                   OUTSTANDING
                                   IQC Award 2002
                                                            PS21 Organisational
                                                             Excellence Award




                                                              JRP Award




                                                                         Platinum Singapore Health Award
                                                                         HEALTH Leader Excellence Award
                                                                             HEALTH Promoter Award


                                                                                                   45




  Ministry of Health Customer Satisfaction Survey 2006
                            Recommendation Level

Mean : 4.02         3.74              3.88          3.78               3.99             3.70
        2.4          2.4              2.9            3.9                2.8              4.8
100%
              4.0            8.2              6.4           6.3                   3.6
                                                                                                 5.9
       16.2                                                            20.7
 80%                                  17.7
                     26.1                            23.1                                21.3


 60%
       43.5                                                            37.3
                                      46.2
                                                     40.2
                     39.5                                                                48.2
 40%



 20%
       33.8                                                            35.6
                     23.8             26.9           26.1
                                                                                         19.4
 0%
        AH          Hosp A           Hosp B         Hosp C           Hosp D             Hosp E

         Will not recommend
         Unlikely to recommend
         Neither recommend nor not recommend
                                                                                                   46
         Likely to recommend
         Strongly recommend
                         The Scion




        • Generation Y (dominant buyers of 2020)
        • Completely, radically different
        • Hip, out-there, customizable
        • Strong emotional appeal …..

        • Street marketing,   BUZZ
                                                                  47




         If winning is everything, then only victory has meaning.
But it’s not about winning alone, because even winning can be hollow.
                         It’s about having a dream,
                 and having the courage to bring it to life.

                    What’s your dream?




                                                                  48
              Toyota’s Dream Car
• Makes air cleaner than it is
• Cannot injure people
• Prevents accident from happening
• Makes people healthier
• Excite, entertain and evoke emotions of occupants
• Drives around the world on just one tank of gas

                                    - Katsuaki Watanabe
                                      President, Toyota


                                                          49




                   Khoo Teck Puat
                      Hospital




      Jurong Medical
          Centre




                        AH




                                                          50
            “Hassle Free Hospital”
“I posed the challenge to the AH rebuilding team: build a
hospital… designed with patients unambiguously at the
centre of the focus, with technology fully exploited for the
benefit and convenience of patients…. It will be a hospital
which is well linked… and to which the patients can be
transferred seamlessly… It will be a hassle free hospital.”

                              Mr Khaw Boon Wan, Minister of Health
                              Parliamentary Debate, 17 March 2004




                                                                51




            Khoo Teck Puat Hospital




                                                                52
The “Toyota” of “ Healthcare Without Walls”
  • Focus on delivering customer’s value - Better, Faster,
    Cheaper, Safer Healthcare
  • Be as audacious & cost effective as Toyota




   Toyota Corolla               Lexus                    F1 Racing


                                                                     53




                    THE Key To Success
   Authentic, competent leadership that live the
        philosophy and teach it to others




           Ms Yiap Pok Ling             A/Prof Pang Weng Sun
                                                                     54
         Senior Nurse Manager           Chairman Medical Board
liaktl@gmail.com




                   55