Press release
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november 28, 2017 - Toyota
Toyota Announces Executive, Organizational and Personnel Changes
Changes aim to
- Concentrate the capabilities of the #toyota Group companies and appoint the right people among a diversified workforce with high levels of expertise from within and outside #toyota to the right positions
- Renew the roles of executive vice presidents, establish the new post of "fellow", and move forward the timing of executive changes to transform the roles and awareness of executives and to accelerate management oversight
- Transform the company structure into one that makes possible decision-making close to customers and close to where the action takes place
Toyota City, Japan, November 28, 2017―Toyota Motor Corporation (TMC) plans to change its executive lineup and revise its organizational structure in January 2018 to further strengthen cooperation among companies of the #toyota Group and boost business innovation.
TMC, constantly aware that there is always a better way, has been ceaselessly innovating its executive and organizational structure to promote its overarching goal of making ever-better cars and the development of a diversified and talented workforce.
After introducing a regional-based management system in 2011 and a business unit system in 2013, TMC made substantial changes to its structure in April 2016 to create a company built around a product-based, rather than function-based, organization. Among efforts to actively boost business innovation in 2017, it established ev C.A. Spirit, a company that promotes development of basic structural technologies for electric vehicles through a business structure that is open to participation by other companies.
TMC has also been promoting appointment of the right people to the right positions in its executive lineup. Transcending practices of the past, efforts have included appointing its first non-Japanese executive vice president in 2015 and its first executive vice president with a technical-position background in 2017.
With the advance of electrification, automation, connectivity and other technologies, TMC believes the #automotive industry has now entered a phase of "competition and coordination" that involves entities from other industries. To further strengthen cooperation among companies of the #toyota Group and boost business innovation, TMC has decided to change its executive lineup and revise its organizational structure in January 2018. Surrounded by changes of unprecedented speed and scale, TMC is aware it faces a "now or never" situation in which not a moment can be spared. In response, following the change to its executive lineup in April this year, TMC has made subsequent changes in June, August and November, as needed, and has decided to advance the timing of executive changes next year from the traditional April to January.
"The #automotive industry has entered an era of profound transformation, the likes of which come only once every 100 years," said TMC President Akio Toyoda. "Over the next 100 years, there is no guarantee that automobile manufacturers will continue to play leading roles in mobility. A crucial battle has begun―not one about winning or losing, but one about surviving or dying. We will pursue alliances with other companies and other industries. But, before that, it is essential that we concentrate the capabilities of the #toyota Group. Our coming structural change reflects our will that the #toyota Group will tackle this era of profound transformation. This change includes the appointment of people with high levels of expertise, regardless of time with the company or age and from the perspective of having the right people in the right places. This is an era in which the correct answers are unknown. Knowing that the customer comes first, we need to have people who understand the workplace well enough to lead with quick judgment, quick decisions and quick action through genchi genbutsu (on-site learning and problem-solving) as they see fit in response to all kinds of situations. To create forms of mobility to which people can feel intimately connected, and to be able to provide the freedom and joy of mobility to all people, everyone working for #toyota will unite in spirit and continuously take up new challenges," he added.
Main changes in planned revision of executive lineup and organizational structure- Executive lineup
- The executive lineup is to include people both inside and originally from outside the company with a high level of expertise, based on the principle of appointing the right people to the right positions, transcending practices of the past.>The executive lineup is to include people from within and outside the #toyota Group and is to feature greater diversity by including a female executive, additional non-Japanese executives and executives with technical-position backgrounds.
- Executive positioning
- In addition to supporting the president, executive vice presidents, as executive officers, are to be positioned as chairpersons and presidents of TMC's in-house companies and as organizational-group chief officers to directly oversee their areas of responsibility, making them closer to TMC's customers, and to develop the next generation of TMC's human resources.>This is to encourage executives to play more-active roles.
- The post of "fellow" is to be established for executives with a high level of expertise.>This is to widen the range of executive development.
- Changes to the executive lineup are to be made in January, instead of April (to coincide with the timing of organizational changes).>This is to accelerate management oversight that is fully coordinated with the workplace.
- Changes in organizational structure
- The #corporate management-related divisions and the Business Planning & Operation business unit are to be restructured.>The #corporate strategy function is to be reduced. (The #corporate Strategy Division and the Strategic Top Executive Meeting Office are to be restructured.)>This is to achieve operations that are rooted in each region. (Organizational entities in TMC responsible for overseas regional headquarters are to be restructured.)
- The Japan Sales Business Group is to be restructured and based on regions rather than sales channels.>This is to allow actions that more-closely adhere to the needs of each region.
- The TPS Group is to be newly created.>This is to consolidate the strengths of #toyota, with an aim to improve productivity in areas outside of production by promoting the #toyota Production System in such areas.
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