culture change by design in toyota europe
TRANSCRIPT
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TOYOTA MOTOR EUROPE
Culture change by design in Toyota Motor Europe
Mark Adams, Toyota Motor EuropeAnne Landréat, Transformation Consultant
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TOYOTA MOTOR EUROPE
What do we know about Toyota ? Ⅰ
Global Automotive Company of Japanese origin.Inventor of ‘Lean’ … Toyota Production System.
Hydrogen Fuel Cell pioneer
Toyota Mirai
The Hybrid car Co
Toyota Prius
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TOYOTA MOTOR EUROPE
What do we know about Toyota ? Ⅱ
2015 global sales target (all Brand)… > 10 million World’s largest car-maker Japanese market share 46%
Familybusiness
Akio Toyoda
Strong values & ideals
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TOYOTA MOTOR EUROPE
What do we know about Toyota in Europe ?
< 1 million sales/year 2014 market share 4.8%
Factories in UK , France ,Turkey , Portugal
Poland , Czech Rep. , Russia
Headquarters in Belgium
30 Sales & Marketing Companies representing 56 countries
Culture = Opportunity OR Challenge
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2005
“ Sales and Manufacturing culture clash within TME“
Toyota Motor Europe is born !
TME + =
Sales & Marketing Company
Manufacturing& Engineering
Company
“Suits” & “Grey jackets” pushed
together
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2008Lehman crash Global financial crisis
“ Toyota immune, untouchable“
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2009 2010
Source :Daily Mail – Daily circulation 2.1m
Toyota recall crisis USA Congress hearing
“ SHOCK - Toyota could fall - Core quality DNA destroyed “
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2011Sales continue to fall in Europe
“ Never thought we would experience this in Toyota. Can we ever recover ?“
2007 2008 2009 2010
Voluntary Resignation
Profits turn to losses
1,261K
808K
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2011
“ From new hope to renewed devastation“
Toyota Global Vision Japanese earthquake, tsunami & Fukushima accident2 days later
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2012
Didier LeroyTME President & CEO
Engagement
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TOYOTA MOTOR EUROPE
Why did TME need external help ?
Employees were exhausted
Answers lay in the spirit of Toyota Way, but confidence lost
Years of austerity led to low initiative levels… “play safe”
“PLAY SAFE” = NO SURPRISES NO INNOVATION
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TOYOTA MOTOR EUROPE
New Management Direction - Action
Phase 1
Top down subjects
Selected participants
Variable outcome
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TOYOTA MOTOR EUROPE
VP Forums
“Shared strategy”“Access to Vice Presidents”
Opened up vertical and diagonal communication
>90% appreciation
Provoked creativity among VP presenters
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TOYOTA MOTOR EUROPE
Toyota ‘World Cafés’
Trigger was “Harnessing diversity”Small voices became
big voices
Single biggest revolution in TME approach to employees. Bottom-up themes emerged : phase 2
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TOYOTA MOTOR EUROPE
TME NMD-Action train was rolling
HR motivation
survey
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TOYOTA MOTOR EUROPE
Culture survey
Control
Collaboration
Competition
Transformation
Agility Initiative
Innovation
Entrepreneurship
Responsiveness
Creativity
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TOYOTA MOTOR EUROPE
Plain sailing from here ?
Challenge : how to appeal to all employees. Bring on the designers !
NMDAction
TME Organisation
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TOYOTA MOTOR EUROPE
The first iteration of many: Hitting the client’s culture
How we had to change course from the very beginning and how it led us to unveil the real needs of our client.
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TOYOTA MOTOR EUROPE
The real challenge? Change the way people are managed
«The automotive industry is changing and these changes question the way we manage people. Toyota Europe needs to become more agile, creative and adaptative to be able to fight in a highly competitive market. How do we achieve that?» Didier Leroy, Vice-President, Toyota Motor Corporation
From top to bottom and accross divisions, we heard the same thing
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TOYOTA MOTOR EUROPE
The even more real challenge? (Almost) no one wants to be the one who changes (first)
Where are the corporate rebels?
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TOYOTA MOTOR EUROPE
The way people are managed = Employee experience = Customer experience
«Customer experience is the brand. And customer experience follows employee experience.» Steve Cannon, CEO, Mercedes Benz USA
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TOYOTA MOTOR EUROPE
So, what happens to your brand when your employees’ experience looks like that ?..
Things have to change, don’t they ?..
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TOYOTA MOTOR EUROPE
And what if you would create new, completely different experiences for employees…
That’s where experience design kiks in (but we still don’t know about it)
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TOYOTA MOTOR EUROPE
Then capture what emerges…
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TOYOTA MOTOR EUROPE
…and leverage energy and ideas to start transforming the organization from within
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TOYOTA MOTOR EUROPE
…by designing processes that help collectively decide what to do and how to do it…
Give everybody a voice, facilitate creativity, quick consensus building and collective action-planning
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TOYOTA MOTOR EUROPE
…and then share it to gain support?
That’s what you may get when you ban powerpoint presentations and change the setting…
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TOYOTA MOTOR EUROPE
How to cross the «big, scary chasm» and reach out to the entire organization?
Everybody is talking about themselves and what great ideas and projects they have…
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TOYOTA MOTOR EUROPE
That’s where experience design officially kicks in
Serendipity ?..
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TOYOTA MOTOR EUROPE
How empathizing with users and co-design unleashed creativity
The turning point
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TOYOTA MOTOR EUROPE
The brief:• the branding must be so strong that it can survive complete freedom underneath• no glossy corporate touch and feel (it is an employee led initiative)
A brand new brand
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TOYOTA MOTOR EUROPE
Each group gets its own pictogram
Customizable
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TOYOTA MOTOR EUROPE
And the brand becomes the roadshow layout itself
Which works at all scales
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TOYOTA MOTOR EUROPE
And generates positive energy
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TOYOTA MOTOR EUROPE
DIY
A powerful team building exercise
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TOYOTA MOTOR EUROPE
Collaboration
Action learning
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TOYOTA MOTOR EUROPE
Everything has been made to make everybody feel they shouldn’t miss it
Will they come?
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TOYOTA MOTOR EUROPE
Friday afternoon, it’s 5:30 pm and people are still showing up massively
Well… They came
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TOYOTA MOTOR EUROPE
End result : almost 90% attendance (our target was 40%)
What «customizable» means
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TOYOTA MOTOR EUROPE
And will we live up to the level of expectations we had unveiled?
Did we cross the chasm?
?
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TOYOTA MOTOR EUROPE
How to help managers to adopt the new behaviors which will support the desired culture?
The next challenge
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TOYOTA MOTOR EUROPE
Roadshow after glow
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TOYOTA MOTOR EUROPE
Energy levels fell
▽ ▽ ▽
E
Summer holidayRoadshows Workshops
Facilitators
Members
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TOYOTA MOTOR EUROPE
Innovation group impact
3 projects proposed to TME Board
1 & 2 Proposing taking Toyota core capabilities & marketing to the outside world
3 Proposing outside technologies to be brought into Toyota core
Board reacted angrily to 1 & 2
Damaged appetite for NMD Action activity
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TOYOTA MOTOR EUROPE
Back on track
2015 strategy
Content & design that captures the imagination
Groups to deliver closure & learnings mid-year
NMD Action to re-focus on Management Behaviours
Roadshow 2015
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TOYOTA MOTOR EUROPE
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TOYOTA MOTOR EUROPE
VR
Looking to the future
Crisis
Company HR&A
Positive mind-set
Headcount labour cost
Today
Survey solutions
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TOYOTA MOTOR EUROPE
New CEO – Consistent understanding
“ Culture change is a process that must be worked at over years.Continue to support the believers, and also to influence the doubters”
Dr Johan Van Zyl
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TOYOTA MOTOR EUROPE
Thank You