What do Toyota® and Weight Watchers® have in common?
by Cherryll Sevy, CMC Download this article:
 What do Toyota® and Weight Watchers® have in common? (PDF, 311KB)
 Clients typically bring us in to fix something that’s not working as it relates to people, improve a performance issue, or create new programs to make the workplace better. Whether it’s designing retention programs to identify and keep good people, or creating compensation plans to reward those people and their performance, success depends on the organization’s ability and willingness to change.  An article in a recent The New Yorker magazine, noted that in the first quarter of 2008, Toyota surpassed General Motors in cars sold. Toyota is also the leader in profitability and innovation. These are two goals many companies don’t necessarily seem to embrace concurrently. Most often, there’s an underlying fear that “if we try something new, we may jeopardize profitability”. So risk is minimized and failure punished. This is observed in organizations that discourage suggestions for improvement from all levels, and instead embrace top-down “change initiatives”. Often a current fad, according to McKinsey, these programs fail over two-thirds of the time! In contrast, Toyota operates its business based on the principle of “kaizen”—continuous improvement. This principle recognizes that successful innovation as an incremental process, things improving on a daily basis. Consider these 3 steps to encourage success in a program you want to change. - Eat less, exercise more for life.
This is the basic tenet of Weight Watchers, which is not a fad diet where one loses 20 pounds and quickly regains it once old habits return. Many organizational change initiatives are simply a fad diet. Without sustained behaviors and the new habits incorporated into your life or your business, the old ways (and results) will return. Regular, sustained improvement one choice and one day at a time---not always exciting, but it will achieve the results you desire.
- Solicit and try suggestions from all employees.
Toyota implements over a million new ideas each year and most are from workers themselves. American companies historically receive far fewer suggestions from employees than Japanese companies. Do you really listen to your employees? If you have a suggestion program or survey employees, be sure to provide feedback and demonstrate action taken on the information received.
- Encourage risk and do not penalize failure.
Typically performance incentive plans reward only specific results, while the “unanticipated”—those activities which take advantage of opportunities and address challenges go unrewarded. (One of my clients defines this component in the Executive Incentive plan, it is discussed at an annual Board meeting and often such activity is rewarded and recognized.) Build incremental rewards into the process and don’t penalize for trying something new. Consider rewards for risks taken.
If you’d like more information or want to share your thoughts on this, please contact Cherryll Sevy. We work closely with our clients to create solutions for real people to improve individual and organization performance.
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