ABSTRACT
This chapter summarizes understanding of how Toyota thinks and operates. Based on this information, it outlines several management concepts and implications for business managers to consider. The constancy of purpose provides a common, unifying, directional mechanism—a moral compass for its employees. Organizations should continuously change their existing practices, systems and styles to maintain management vigor and a competitive edge in a rapidly changing business environment. Management must undo the mindset of goal setting to fit available resources—a concept still preached at many business schools and practiced at many major corporations. The difference between Toyota and many other companies is in the measurement of the performance and reward system. Toyota's purpose is to serve the global community. The chapter also presents some interesting and significant observations gathered from studying Toyota. They are important to any reader interested in reinforcing or reevaluating their understanding of important management concepts.
