Slidedeck from the talk given jointly with Mark Adams (VP at Toyota Motor Europe) for the Intersection / DMI european '15 Conference in Berlin #designtoalign

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Culture change by design
in Toyota Motor Europe
Mark Adams, Toyota Motor Europe
Anne Landréat, Transformation Consultant

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What do we know about Toyota ? Ⅰ
Global Automotive Company of Japanese origin.
Inventor of ‘Lean’ … Toyota Production System.
Hydrogen Fuel Cell pioneer
Toyota Mirai
The Hybrid car Co
Toyota Prius

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What do we know about Toyota ? Ⅱ
 2015 global sales target (all Brand)… > 10 million
 World’s largest car-maker
 Japanese market share 46%
Family
business
Akio Toyoda
Strong
values &
ideals

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What do we know about Toyota
in Europe ?
 < 1 million sales/year
 2014 market share 4.8%
Factories in UK , France ,Turkey , Portugal
Poland , Czech Rep. , Russia
Headquarters in Belgium
30 Sales & Marketing Companies representing 56 countries
Culture = Opportunity OR Challenge

5. 2005
“ Sales and Manufacturing culture
clash within TME“
Toyota Motor Europe is born !
TME+ =
Sales &
Marketing
Company
Manufacturing
& Engineering
Company
“Suits” & “Grey
jackets” pushed
together

6. 2008
Lehman crash Global financial crisis
“ Toyota immune, untouchable“

7. 2009 2010
Source :Daily Mail – Daily circulation 2.1m
Toyota recall crisis USA Congress hearing
“ SHOCK - Toyota could fall -
Core quality DNA destroyed “

8. 2011
Sales continue to fall in Europe
“ Never thought we would experience this
in Toyota. Can we ever recover ?“
2007 2008 2009 2010
Voluntary
Resignation
Profits turn
to losses
1,261K
808K

9. 2011
“ From new hope to renewed devastation“
Toyota Global Vision Japanese earthquake, tsunami
& Fukushima accident2 days later

10. 2012
Didier Leroy
TME President & CEO
Engagement

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Why did TME need external help ?
 Employees were exhausted
 Answers lay in the spirit of Toyota Way, but
confidence lost
 Years of austerity led to low initiative levels…
“play safe”
“PLAY SAFE” = NO SURPRISES
NO INNOVATION

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New Management Direction - Action
Phase 1
Top down subjects
Selected participants
Variable outcome

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VP Forums
“Shared strategy”
“Access to Vice
Presidents”
Opened up vertical and diagonal communication
>90% appreciation
Provoked creativity
among VP presenters

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Toyota ‘World Cafés’
Trigger was
“Harnessing diversity”
Small voices became
big voices
Single biggest revolution
in TME approach to
employees.
Bottom-up themes
emerged : phase 2

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TME NMD-Action train was rolling
HR
motivation
survey

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Culture survey
Control
Collaboration
Competition
Transformation
Agility Initiative
Innovation
Entrepreneurship
Responsiveness
Creativity

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Plain sailing from here ?
Challenge : how to appeal to all employees.
Bring on the designers !
NMD
Action
TME
Organisation

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The first iteration of many: Hitting the client’s culture
How we had to change course from the very beginning and how it led us to
unveil the real needs of our client.

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The real challenge?
Change the way people are managed
«The automotive industry is changing and these changes question the
way we manage people. Toyota Europe needs to become more agile,
creative and adaptative to be able to fight in a highly competitive
market. How do we achieve that?»
Didier Leroy, Vice-President, Toyota Motor Corporation
From top to bottom and accross divisions, we heard the same thing

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The even more real challenge? (Almost) no one
wants to be the one who changes (first)
Where are the corporate rebels?

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The way people are managed
= Employee experience = Customer experience
«Customer experience is the brand.
And customer experience follows employee experience.»
Steve Cannon, CEO, Mercedes Benz USA

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So, what happens to your brand when your
employees’ experience looks like that ?..
Things have to change, don’t they ?..

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And what if you would create new, completely
different experiences for employees…
That’s where experience design kiks in
(but we still don’t know about it)

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Then capture what emerges…

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…and leverage energy and ideas to start
transforming the organization from within

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…by designing processes that help collectively
decide what to do and how to do it…
Give everybody a voice, facilitate creativity, quick consensus building
and collective action-planning

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…and then share it to gain support?
That’s what you may get when you ban powerpoint presentations and
change the setting…

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How to cross the «big, scary chasm» and
reach out to the entire organization?
Everybody is talking about themselves and what great ideas and
projects they have…

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That’s where experience design officially kicks in
Serendipity ?..

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How empathizing with users and co-design unleashed creativity
The turning point

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The brief:
• the branding must be so strong that it can survive complete freedom underneath
• no glossy corporate touch and feel (it is an employee led initiative)
A brand new brand

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Each group gets its own pictogram
Customizable

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And the brand becomes the roadshow layout itself
Which works at all scales

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And generates positive energy

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DIY
A powerful team building exercise

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Collaboration
Action learning

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Everything has been made to make everybody feel they shouldn’t miss it
Will they come?

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Friday afternoon, it’s 5:30 pm and people are still showing up massively
Well… They came

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End result : almost 90% attendance (our target was 40%)
What «customizable» means

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And will we live up to the level of expectations we had unveiled?
Did we cross the chasm?

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How to help managers to adopt the new behaviors which will support the desired culture?
The next challenge

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Roadshow after glow

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Energy levels fell
▽ ▽ ▽
E
Summer holidayRoadshows Workshops
Facilitators
Members

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Innovation group impact
3 projects proposed to TME Board
1 & 2 Proposing taking Toyota core
capabilities & marketing to
the outside world
3 Proposing outside
technologies to be brought
into Toyota core
Board reacted angrily to 1 & 2
Damaged appetite for NMD Action activity

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Back on track
2015 strategy
Content & design that captures the imagination
 Groups to deliver closure & learnings mid-year
 NMD Action to re-focus on Management Behaviours
Roadshow 2015

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VR
Looking to the future
Crisis
Company
HR&A
Positive
mind-set
Headcount
labour cost
Today
Survey
solutions

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New CEO – Consistent understanding
“ Culture change is a
process that must be
worked at over years.
Continue to support the
believers, and also to
influence the doubters”
Dr Johan
Van Zyl

49. TOYOTA MOTOR EUROPE
Thank You