Working Toward the Mobility Society of the Future
Message from
the President
The Source of Our
Value Creation:
What Makes Us Toyota
Value Creation Story:
Working toward the Mobility
Society of the Future
Business Foundations
for Value Creation
Corporate Data
>Message from the CSO >Roundtable Discussion with the Outside Directors > Dialogue with Institutional Investors on Corporate Governance > Corporate Governance
Message from the CFO > Capital Strategy >The Environment > Vehicle Safety > Quality and Information Security > Intellectual Property and Privacy Value Chain Collaboration
>Human Rights Diversity and Inclusion >Human Resource Development >Health and Safety and Social Contribution Activities Risk Management and Compliance
role very seriously and prepare rigorously to par-
ticipate in discussions.
Sugawara I think the public perception of
Toyota has two parts. On the one hand, consider-
ing that Toyota has recorded record profits even
during the COVID-19 pandemic, it is seen as hav-
ing been well prepared for crises, even as it goes
through a major transformation itself. On the other
hand, there is some doubt about how adaptable
Toyota really is to major changes, including new
business models and environmental issues.
Working with Toyota, I feel that the Company
is probably among the best in the world at deal-
ing with any clear-cut crisis immediately con-
fronting it. As Ms. Kudo said, Toyota has strong
shared values and internal unity, so I think it is
almost uniquely well suited to overcoming any
clear and pressing challenges it may confront,
like the pandemic.
On the flipside, however, when it comes to
future uncertainty, such as whether Toyota's cur-
rent business model will still be competitive in 10
or 20 years, I think that few executives or employ-
ees are approaching issues with same sense of
urgency as President Toyoda. As the Company
successfully overcomes more immediate crises, I
think there is a danger of slipping into complacen-
cy based on that short-term success.
I think that right now the duty of Outside
Directors is to persistently sound the alarm on
major issues that Toyota will eventually confront
but that are not yet fully apparent-issues con-
nected to economic security, the environment,
and transitioning to a new business model-and
to pose to management a variety of "what if"
scenarios. We are always probing and prodding
during discussions at the Board of Directors,
making sure that management can appropriately
defend its strategy by questioning whether the
current trajectory is the right one, or if it is,
pointing out any lack of concrete detail or need to
commit to specific numbers. These discussions
help to gradually reveal the dangers Toyota
faces, which enables the Company to overcome
them. I think that sharing this approach more
broadly can make Toyota more adaptable to
change going forward.
Craven We are very fortunate to have such a
capable leader as Akio Toyoda. He's brilliant, but
at times, for the rest of the company, he's too
fast. I think we have to communicate and give
examples of what he requires for the future of
Toyota, and I don't think that we're all that good
at doing that. Taking the initiative in that way is not
something that most managers do naturally, so
the many changes we have been seeing in HR
systems have been very positive.
I think more has to be done, but the opportuni-
ties are amazing. There can be so much positive
energy locked down within Toyota. We have to
release that for the good of the Company through
effective communication.
What qualities and abilities do you think
are needed in Toyota's leadership?
Craven The president needs to make very clear
the importance of managers and the time they
give to managing and developing their teams.
They have to be true team leaders.
The TPS is fantastic, but I think it can be so rig-
orous that it may inhibit individual thought, which
is not conducive to coming up with new ideas for
the future. I would like it to be made very clear,
from management, that individual team members
should not just do what they're told, but really
think outside the box.
Kudo I think that Toyota's leaders need to be
highly innovative, flexible, and creative, with the
dedication and selflessness to see things
through as well as the breadth of perspective to
act with all stakeholders, including society at
large, in mind. They must also be able to clearly
communicate the Company's stance and trajec-
tory, bringing people on board and drawing out
their abilities to lead them forward. They need to
not just focus on short-term profit but act with a
commitment to making ever-better cars and
medium to long-term value creation. Given the
circumstances facing Toyota today, I think that
only leaders who can innovate and change
based on a sense of urgency will be able to
enhance corporate value over the medium and
long term.
Toyota's businesses depend on more than
370,000 employees, as well as suppliers, dealers,
and many other partners. As Toyota transforms
into a mobility company, I'm sure the range of
these essential partners will only grow. Uniting a
company this large requires someone who will
work not just for themselves to achieve strong
results during their tenure but for the good of
industry as a whole, and even society at large.
They must express Toyota's aspirations and
demonstrate them through their own actions to
build momentum by getting others excited to
work alongside them.
Rather than settling for the status quo, I think
that Toyota needs leaders who can envision and
ambitiously pursue future, as-yet-unknown
change, with the communication abilities, strength
of character, and selflessness to guide the entire
Company and even society forward.
Sugawara The leader of Toyota has two missions.
Because of Toyota's enormous size, its every
move is scrutinized, and the Company's actions
exert a tremendous influence on the industrial
sector. In some ways, Toyota leads the industrial
sector, and its actions and statements can have
ramifications in government, politics, and even
international relations. As Ms. Kudo said, Toyota's
leader cannot think only of Toyota; it's a major role
that requires an individual's full dedication, with a
mission that encompasses the broader world.
Internally, the other key mission for the leader of
Toyota is managing such a mammoth organiza-
tion through this time of transformation. Only
someone who can demonstrate their own deter-
mination to carry out this mission to our young
professionals, who represent the future of Toyota,
and foster in them the same kind of determination
can be considered fit to lead the company.
By developing many people with these quali-
ties and placing them in central management,
regardless of age, Toyota as a whole will be able
to carry out these two missions, no matter who
becomes president. I think if Toyota develops a
culture that fosters young and mid-level employ-
ees who are always aware of Toyota's responsi-
bility to the wider world while striving to improve
and go further internally, it will have no shortage
of individuals well suited to top management.
This, in turn, will be good for the future of the
Company and of Japan.
Craven I feel such a unity between the three of
us on this matter.
I see Toyota as a box full of positive energy.
We've just got to open the box and let it fly, and
it's the younger people that will be able to do that
most easily.
Sugawara I agree. We have a lot of work to do.
Craven Yes. It's very exciting.
TOYOTA MOTOR CORPORATION
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