“Myth #3: Kaizen Is Slow; Innovation Is Quicker Perhaps the most dramatic example of what can happen when innovation is used and abused is Toyota, a company that calls kaizen its soul. For most of its history after World War II, Toyota exemplified quality automobile manufacturing. Consumers bought Toyotas not for the styling or prestige but for their unparalleled reliability. But by 2002, Toyota management decided it was not enough to build the highest-quality and most-profitable cars—it wanted to be the biggest car company in the world. And the company succeeded. It built factories rapidly and added enough capacity to produce three million additional automobiles in just six years. But productivity came at a high price: Suppliers could not sustain the quality for which Toyota was known, and the new factories did not have the time to build a kaizen culture. The result was over nine million recalls and some well-deserved bad publicity. Here is an internal memo written before the crisis became public: “We make so many cars in so many different places with so many people. Our greatest fear is that as we keep growing, our ability to maintain the discipline of kaizen will be lost.” —Teruo Suzuki General Manager, Human Resources In time, Toyota recognized that abandoning kaizen drove the company away from a commitment to its core principles. Since the crisis, Toyota has slowed down production, given local managers in the U.S. more responsibility for quality control, and trained new workers in the kaizen culture. Toyota has returned to focusing on quality, not quantity, as its mission, with an emphasis on correcting defects in production while they are small and easily fixed. And Toyota’s reputation for quality has been restored. The company’s story is an excellent illustration of the ways in which kaizen builds habits that can last a lifetime and helps avoid the painful consequences of steps that may, in retrospect, have been too big for the individual or the work group to swallow.”