Toyota Talent: Developing Your People the Toyota Way

But beyond those obvious uses, this book offers plenty to anyone trying to improve his or her performance at work. That's because Toyota's training system involves a precise method for breaking down tasks to their components and then perfecting their execution – a practice that can be applied to your own work, whether you're a CEO or a new hire.

So stick around, and learn why employee training is more than a management fad; get an insider's view of Toyota's industry-leading trainers in action; and find out why "master trainer" might be a position that deserves a spot at the executive conference table.

The book is divided into four major sections, each containing several chapters. Taken together, it's a comprehensive how-to manual for implementing an effective training program. While the book follows a logical progression – and human-resources people will want to read it straight through – each section stands on its own and will appeal to different subgroups.

The opening section focuses on getting the organization ready to institute a serious training program. Executives won't want to miss this one. Here, the authors lay out what they call the "unfortunate reality" of the corporate world: Decision makers don't take enough responsibility for employee training. They treat training like the next management fad, and lose interest when it doesn't immediately deliver bottom-line results. The first step to rolling out – or reviving – a robust training program is to acknowledge that it's a critical priority.

At Toyota, the authors claim, a rigorous training program isn't a mere means to a profitable end. Rather, training is an end in itself – and profitability flows from it. Toyota is famous for its so-called "lean" manufacturing process, which constantly seeks to minimize waste and improve quality. Many companies have tried to imitate the lean system and failed, because they didn't place enough emphasis on people.

At Toyota, there's a saying that translates from Japanese as "making things means making people." At many companies, the goal these days is making people redundant.

The authors cite former General Electric CEO Jack Welch, who famously argued that every company always had a "bottom 10%" of employees who should be "let go." For the authors, the emphasis on redundancy programs represents a missed opportunity to develop the talent on hand. Toyota believes that natural ability accounts for only about 10% of an employee's talent. The rest comes from the training opportunities provided by the company. However, that doesn't mean Toyota coddles its employees or tolerates bad performance. In fact, the company sets high expectations and continually monitors performance. The system "demands high capability" from employees as a matter of course. Since everyone is expected to perform well, there's no need to search out and fire a "bottom 10%." Through training, Toyota provides employees with the training tools to be effective, and those who don't measure up leave on their own accord.

Companies that fail to maintain adequate training programs fall into what the authors call the "cycle of struggle and firefighting." The "vicious cycle" begins with ineffective training, leading to ineffective and inconsistent results, followed by the time-consuming process of "fire-fighting" – dealing with crises caused by bad results – which in turn leads to insufficient time for training, and so the cycle continues.

For Toyota, a robust training system drives a much more virtuous cycle. In the Toyota Production System, employees receive regular training and are placed into a streamlined operation system that demands excellence. If they succeed, they develop confidence and the habits of excellence. Then they receive yet more training and opportunities to improve – and thus the cycle goes on. Constantly challenged to improve, people either fit in or drop out to work for less-demanding companies – which are probably less successful.

Creating such a positive cycle is easier said than done, and the authors concede the point. An effective program requires commitment and resources from management, and pressures from outside to deliver short-term profits often tempt executives to slash training budgets to boost results. But the authors point out that while most of the auto industry makes headlines by appeasing investors through budget cuts, Toyota consistently leads the industry in sales and profitability while constantly hiring – and developing – more workers.

Once executives commit themselves to training as an objective in and of itself, it's time to prepare the organization for this new priority. At the end of the first section, the authors provide a detailed strategy for how to get a new training program off the ground. The key rule of thumb is this: Count on having one instructor for every ten employees. This person need not dedicate himself solely to instruction. In fact, the most effective instructors will be those who regularly perform the tasks themselves. But at least part of their weekly work schedules should be devoted to instruction.

Section Two drills down into the first big step in Toyota's training plan: the need to identify critical knowledge. This is the section with the broadest appeal: It will be of interest to anyone who's determined to improve his or her performance at work. In fact, in this section the authors take pains to show that training plays just as important a role in the service sector as it does in manufacturing.

The section opens with a somewhat technical explanation of the different forms training should take in different professions. A couple of examples will illustrate the authors' take on this question.

First, consider someone who works on an automotive assembly line applying paint to cars. Now think of an attorney defending a corporation from liability claims. The auto worker performs highly standardized tasks, while the attorney requires analytical skills. He needs to be grounded in liability law, but the argument he constructs to defend his client will require a lashing of creativity.

Thus the car worker will benefit from standardized training, while the attorney will require a mentor: A talented, accomplished superior willing to share his knowledge base and thought processes. But leaving these key differences aside, the worker and the attorney will both require training in order to develop their talent and advance their careers.

And both can benefit from another key element of the author's training regimen: breaking tasks down to smaller elements that can be practiced and mastered. This is what they call "fundamental skills." For the factory worker, this might mean learning to operate the paint machine so that it applies an even coat. For the attorney, it might mean learning to quickly digest previous cases relevant to the clients, and accurately understanding precedents – or judicial logic that has worked in the past. Successful manufacturing companies and law firms alike are built upon workers who have mastered these fundamental skills.

The authors then shift into a discussion of standardized work and Toyota's specific job-instruction method. In short, "standardized work" is the continuous process by which company engineers, along with workers on the shop floor, analyze individual tasks with an eye toward minimizing waste. At a given time, the best possible way to do the task becomes the "work method." This work method is then broken down into discrete tasks that can be taught by the trainers and refined.

The workers then take the refined method to the shop floor and put it into practice. Then the process begins anew – engineers begin analyzing the new work method to see how it can be adjusted, using input from workers themselves as well as observation and production metrics. Thus, tasks are constantly refined and workers are continuously trained. And even workers doing routine work like painting cars are valued for their ability to help improve the process.

The rest of Section Two lays out detailed examples of how precisely engineers analyze specific tasks and adjust them to maximize efficiency. This bit will be a goldmine for division heads looking to take their group to the next level of profitability.

The next section, called "Transfer Knowledge to Others," focuses on the actual task of training. The authors open by promoting preparation as the key to an effective training program. They challenge the oft-heard notion that young people lack the discipline to accept proper training. More often, the authors say, it's the trainers themselves who lack the discipline to prepare, and their lax attitude rubs off on the trainee.

A proper training session will reflect the expectations the trainee will face on the shop floor. If you want a disorganized, unprepared, unfocused, and dissatisfied workforce, let your trainers operate with no preparation. If you want your workforce to work like a well-oiled machine, make sure that your trainers know exactly what they're doing going into a session, and present an image of professionalism, focus, and friendliness. Before the training session starts, the trainer will have broken down the task into several major steps that can be demonstrated and explained. The explanations, which show why each step must be done properly, are called "key points."

From there, the authors lay out a detailed recipe for training. First, the trainer puts the student at ease by conveying a sense of patience and concern for the trainee's success. A tense student doesn't learn as readily as a relaxed one. Then the trainer states each major step and then performs it. After performing, he states it again. He goes through each major step of the job in that sequence: state the major step, perform it, then restate it.

Once the trainer has gone through the entire task in this manner, he repeats it from the top – this time adding the key points, the subtle information required to perform the task correctly. The authors provide detailed examples of trainer-trainee dialog – some might say in painstaking detail. This section does go on a bit with stiff-sounding detail, but anyone who reads it will know exactly how to perform a Toyota-style training session.

Once the student has seen the trainer perform the task several times, with major steps and key points emphasized, it's time for the trainee to try the task himself. Interestingly, the authors present this step as an opportunity to gain feedback on the trainer, not the trainee. In other words, responsibility for the success of the session rests on the trainer. Or, as a Toyota saying has it, "If the student hasn't learned, the teacher hasn't taught." If the trainee botches the task, it means the trainer failed to demonstrate it correctly. Again, the tryout phase follows a clear series of steps: the student performs the task silently, then does so while reciting the major steps, then does it a third time reciting the major steps and key points.

All the while, the trainer watches and listens closely and corrects any errors as they arise. Throughout the process, the trainer is constantly evaluating the trainee's aptitude to perform the task safely and at proper speed. At some point, the trainer decides when his charge is ready to work independently on the shop floor. Often, the transition from training station to full independence is gradual. The trainer first shares responsibility and eventually turns the trainee loose.

The authors cite several studies showing that such a deliberate approach is far more efficient in the long run than taking a sink-or-swim approach, as many companies do.

Of course, in real-world conditions, trainers face all manner of challenging situations. The last part of the third section provides a useful discussion of how to deal with a variety of situations, and human-resources managers won't want to miss it.

The fourth and final section, called "Verify Learning and Success," deals with follow-up. The training process doesn't end when the student joins the shop floor and begins to operate independently. Rather, it merely enters a new phase.

The first step after the student enters the shop floor is to make sure he feels supported. That requires the trainer to make himself available for questions – and when that's not possible, creating a backup plan with another experienced worker who can confidently answer questions. The best-trained student can see his confidence evaporate if he feels himself abandoned on the shop floor.

Next, schedule frequent follow-ups. The focus should be positive feedback, and criticism, when necessary, should be gentle and encouraging. In this phase, the new hires should be encouraged to ask questions frequently. Ideally, such a setup will help competent new hires gain confidence and pride in their work, and demonstrate to potentially troublesome hires that they're working in a place that requires a high level of performance.

The authors then shift into a discussion of how companies can maintain and evaluate a robust training program. The key here is the continual training of trainers – making certain that the trainers are going about their task with a high level of preparation and professionalism.

One strategy is to develop a "master trainer" position – an executive who leads the entire training program, and who trains and evaluates the trainers. The ideal candidate will have a broad knowledge of the company's various tasks and a deep knowledge of training techniques.

Of course, such a position requires significant resources, but that is precisely the authors' point: training requires resources. In fact, according to the authors, training should not be restricted to the shop floor. According to Toyota philosophy, at every level of the corporate ladder, managers should be actively preparing at least two direct reports to replace them in case of emergency or promotion.

All of this emphasis on training might sound extravagant in today's business world, where the focus is on cost-cutting and organizational streamlining. Under such conditions, what company can afford to create a new executive portfolio? The authors would counter, who can afford not to? And given Toyota's success, who can argue with that?

Toyota Talent might seem slow or plodding at points. But while other management guides might be flashier or more appealing in appearance, this book provides a safe, solid vehicle for reaching your destination – whether it's the top of an industry or the next rung on the career ladder.

Toyota Talent by Jeffrey K. Liker and David P. Meier is published in hardback by McGraw-Hill.

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