Toyota management leads the way in many aspects of business strategy and strategic management and numerous companies have followed the lead of the Toyota business model.
A key architect of the Toyota management style was Taiichi Ohno, who developed the Toyota Production System. Ohno summed up his theory behind the management of Toyota thus: "I feel strongly that the word 'work' refers to the production of perfect goods only. If a machine is not producing perfect goods, it is not 'working'."
On that philosophy the Toyota Production System was built, in which sensors halted machines when they started to malfunction. Those machines were operated by the workforce who could likewise halt the production line when imperfections occurred.
The Production System adhered to the Toyota corporate strategy of cutting waste, listing specific advice such as: “Cut down on the distance that things move throughout the plant.” Another example of this advice, representative of Toyota strategic management and its attitude towards its workforce, is: “Utilise the inherent talent of your workers.”
Toyota business strategies include the development of hybrid cars. Part of Toyota strategic planning is developing a premium position in hybrids in tune with present consumer values.
Seisei Kato of Toyota summed up a further example of the Toyota leadership model by saying: "Never fail to reward merit, but never let a fault go unremarked."
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