Daily Archives: 22/02/2012

Toyota under fire: lessons for turning crisis into opportunity by Jeffrey K. Liker, Timothy N. Ogden. (New York : McGraw-Hill, 2011)

Overview

For decades, Toyota has been setting standards that are the envy—and goal—of organizations worldwide. Its legendary management principles and business philosophy, first documented by Jeffrey K. Liker in his influential book The Toyota Way, changed the business world’s approach to operational excellence.

Granted unprecedented access toToyota’s facilities worldwide, Liker, along with Timothy N. Ogden, investigated the inside story of how Toyota faced the challenges of the recession and the recall crisis of 2009–2010. In both cases, the company was caught off guard—and found that a root cause of the challenges it faced was its failure to live up to its own principles. But the fundamentals were still there, and the company has ultimately come out of the most challenging years of its postwar existence even stronger than before.

Toyota Under Fire chronicles all the events of the recession and the recall crisis in detail, providing valuable lessons any business leader can use to survive and thrive in a crisis, no matter how large:

  • Crisis response must start by building a strong culture long before the crisis hits.
  • Culture matters far more than decisions made by top executives.
  • Investing in people, even in the depths of a recession, is the surest path to long-term profitability.

Because it had founded its culture on such principles, Toyota didn’t need to amass an army of public relations, marketing, and legal experts to “put out the fire”; instead, it redoubled efforts to live up to its founding tenet, going “back to basics. “Toyota began solving this crisis more than 70 years ago, when its organizational culture was first established.

Apply the lessons of Toyota Under Fire to your company, and you’ll meet any future management challenge calmly, responsibly, and effectively—the Toyota Way.

For more information, click here.

You can find this title at IESE’s Library catalog.

Global Risks Atlas 2012

(CC) sklar/Flickr

http://creativecommons.org/licenses/by-nc-nd/2.0/deed.es

Maplecroft has just published the “Global Risks Atlas 2012,” which highlights potentially destabilizing factors in the world’s key growth economies. It finds that Brazil, Russia, India and China are no less susceptible to potential security or economic shocks than in previous years.

The Atlas covers 178 countries and includes 33 indices within five global risk areas, which calculate exposure to macroeconomic risk, security, resource security, climate change and infectious diseases. It also evaluates governance and societal resilience to measure how prepared nations are to adapt to the impacts of global risks.

According to the Atlas, the 10 countries most exposed and least resilient to global risks are: Somalia (1), DR Congo (2), South Sudan (3), Sudan(4), Afghanistan (5), Pakistan (6), Central African Republic (7), Iraq (8), Myanmar(9) and Yemen (10).

The study claims that none of the BRICs have improved their performance in relation to their resilience to global risks over the course of the last four years. This is despite cumulative GDP growth between 2009 and 2012 of 16 percent forBrazil, 13 percent forRussia, 28 percent forIndia and 32 percent for China.

By contrast, New Zealand(176), Finland(175), Denmark(173), Norway(171), Canada(169), Sweden(168), Germany(163) and Australia(159) are among the countries exhibiting the lowest risk, suggesting that traditional Western-styled democracies are still among the safest investment destinations in terms of their exposure and resilience to major risk events.

Access the report on the web.