Why Toyota's System Will Never Work in the US

One of the tenets of the Toyota Production System, the system that is beating Ford and GM, is simplification. Unfortunately, this ideal is not trained in the United States. Our schools teach how to handle ever increasing complexity. Therefore, employees believe that dealing with complexity adds value to their position. For example, a boss comes to an employee with a new daily task. The employee gladly accepts the challenge. The employee is meeting his training he has received his whole life. He believes that he is matching expectations and adding value to the company. As well, this complexity means job security. Whether intended or not, the employee is making it harder to be replaced.

Oddly, franchises design the operations so that they can hire anyone and train them quickly. This entails simplicity. Simplicity is built into the system.

Ultimately, employees will need to be praised and rewarded for taking out unnecessary steps and for removing actions that do not lead to positive financial results.

Short-Term Results

Why do companies bow to the Wall Street analyst? The knee-jerk reaction to a quarter that falls short of expectations is a hiring freeze. Obviously, this helps the short-term net income and appeases the analyst who determines the stock price. Unfortunately, it hinders the five year or ten year initiatives. The example is a hiring manager who needs two employees to implement the initiatives his boss is pushing. Those initiatives will be effectively a year later if they are performed at all.

The real problem is new hires are not the cause of the bad quarter. The CEO should focus on the root of problem. For example, Starbucks stated that Frappuccinos' preparation time were the reason same-store sales did not meet expectations. Nonetheless, a hiring freeze is in place.