Section 4. Global Vision

Item 2. Reform of Management Systems

Among the measures adopted to carry out the Toyota Global Vision was the implementation of management pursuant to regional leadership. The aim is to make decisions as close to customers as possible in each region and emphasize corporate activities with strong community ties. The TMC Head Office in Japan sets the general direction and supports business activities conducted under local leadership. In addition, regional missions, including specific action items and management plans for carrying out the Toyota Global Version, are adopted under the leadership of each region.

When the Toyota Global Vision was announced, a decision was also made to modify the executive systems used to implement it, and the changes were made in stages between April and June 2011. Such wide-ranging reforms were the first to be implemented since 2003, and they were put in place with the purpose of enabling the prompt conveying of customer opinions and worksite information to management and the making of rapid and socially acceptable management decisions based on that information. The senior management team was streamlined by reducing the number of directors from 27 to 11 and by eliminating the senior managing director position, while establishing a new senior managing officer position, and cutting the total number of executives from 77 to 60.

The chief officer for each region and function is a senior managing officer or managing officer, and, while directors decide what will be done, responsibility for determining how such will be done is largely delegated to the chief officers. Measures were also taken to gradually streamline the decision-making level from three layers consisting of executive vice presidents, chief officers, and executives to two levels-executive vice presidents and chief officers. In addition, a system in which chief officers in charge of regions outside Japan are, in principle, stationed in those regions, was introduced to establish a system that allows each region to make its own decisions as close to customers as possible.

In order to listen earnestly to opinions from outside the company, Advisory Boards were established in North America, Europe, and Asia. And, from the perspective of having people tied directly to the worksite involved, the post of executive general manager, filled from among non-executive employees, was established to allow chief engineers in charge of new vehicle development, field general managers for individual technologies, and plant general managers to dedicate themselves to on-site management. To start with, four employees were appointed in April 2011.

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