What can Toyota's Journey Teach us About Automation With a Human Touch?

How the Toyota Production System enables organisational agility and exemplifies a systems approach to getting the best out of people + machines

Implementing an agile transformation programme in a large organisation is a complex and multi-faceted challenge that demands a strong grasp of both the big picture and the smallest of details at the same time. In the major projects we have completed over the years at Post*Shift, one particular source of inspiration has been the Toyota Production System (TPS), which pioneered so many techniques that we take for granted today not only in manufacturing, but also in other areas of work.

We believe each company needs its own organisational operating system, specific to its own culture and ways of working; so we often create an Agile System Hub to guide agile leadership and management practices within the digital workplace, and encourage our clients to adapt and develop it over time, as Toyota have done with the TPS.

The TPS is not new, but it has co-evolved with automation of various kinds over the years, meaning it is particularly useful and relevant to the new challenges organisations face today in finding the best combination of human and machine intelligence. In the Toyota world, this concept of Jidoka - automation with a human touch or autonomation - is a key method for dealing with unexpected events.

TPS emphasises efficiency, quality, and continuous improvement through Just-In-Time (JIT) production, and has revolutionised production by reducing waste, enhancing quality, and empowering workers, making it a cornerstone of lean manufacturing globally. Toyota, with its distinguished history and unique DNA in structure, culture, leadership, and ways of working, has remained competitive since its founding in 1933. This adaptability is crucial in an automotive market where success depends on swift management changes that promote innovation and agility, especially with the transition to a carbon-neutral future.

What can Toyota’s transformation journey teach us about organisational operating systems in a mixed human-machine world, and what lessons can we learn about adapting to survive in highly competitive markets? In this case study we will share:

• 10 building blocks that underpin the success of the TPS

• 4 key challenges Toyota faced along the way

• 11 key principles that guide work in the TPS

• 4 next steps for the TPS

While Toyota has the skills and resources, like other large firms, it must guard against bureaucratisation of management and slow decision-making to stay agile. Can Toyota's structure, culture, leadership, and ways of working remain agile enough to develop integrated service and product ecosystems to lead in the rapidly changing transportation landscape?

Toyota: An Overview

Toyota, a global automotive giant known for its pioneering lean manufacturing principles and the Toyota Production System, has embarked on a transformative journey to adapt to the digital age. With over 360,000 employees worldwide and a reported annual revenue of $280 billion in 2022, let's explore how Toyota has navigated its digital and agile transformation, positioning itself to meet the challenges of a rapidly evolving automotive industry.

Photo by Alexander Londoño on Unsplash

A longitudinal case study of a company like Toyota is fascinating because it reveals how the company adapts and innovates over time, maintaining its competitive edge in a dynamic industry. It showcases the evolution of its strategies, structures, and technologies, providing valuable insights into the factors driving long-term success and resilience. Through these studies, we can understand the interplay between corporate culture, leadership, and external market forces in shaping a company's trajectory.

Let’s dive in.