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Quality, Cost, Delivery Safety, Morale Targets Learning Organization Learning, scientifically thinking members Operational Stability e ACT/ ~ Figure 12.13 The Toyota Production System as cycles of plan-do-check-act. ‘When he became president of Toyota, Fujio Cho saw the company devolving into local cultures around the world, without strong bonds or common language and think- ing. The countermeasure was to develop a global standard of principles and ways of thinking, along with coached practice routines— Toyota developed some kata. These were the Toyota Way 2001 model, Toyota Business Practices, and on-the-job develop- ment, and they were transformational. Mike Rother has created more universal kata for scientific thinking for the rest of us outside of Toyota, which can even apply in everyday life. These days he spends a lot of his time with elementary, middle, high, and vocational schools showing teachers how to coach their students in an everyday scientific way of thinking. It is a way to learn with a purpose. And it can lead to a common vocabulary and way of thinking that is the basis for shared culture.'® In the next principle, we consider how cascaded planning can clarify the direction of the company and connect the improvement goals and efforts of scientific-thinking individuals and teams horizontally and vertically. KEYPOINTS H In the rapidly changing environment of the twenty-first century, organizational learning and adaptation are becoming critical for success. [ The concept of a learning organization can remain an abstraction until it is translated into a mindset and behavior of scientific thinking. People naturally prefer certainty and want to believe they are right, without taking the time to think deeply or study the actual condition. H Fujio Cho recognized this and realized that as Toyota grew and globalized, it needed to develop people through practice and coaching. He led the creation of the Toyota Way 2001, Toyota Business Practices, and OJD. Individuals were coached in these methods through projects, one by one. E Mike Rother has developed a non-Toyota-specific approach for developing sci- entific thinking based on his research into Toyota’s management system. It includes a practical, scientific thinking model and “starter kata,” which are } practice routines. Using this approach and through repetition and corrective feedback from a coach, the learner builds the neural pathways to think and act NGB itz 1IVA Il There is some evidence that the shock of Covid-19 pushed many companies to cut through coercive bureaucracy and become more people centered, quickly adapting and learning and even changing values toward higher levels of trust, engagement, and communication. Unfortunately, those changes often did not reach the thinking in the C-suite, which makes them unlikely to sustain over the long term. H Think of iterative learning as one-by-one problem solving where you break the problem into pieces and learn from each experiment informing the ne-- ™ just that small changes can make a difference, but many small changc clear direction toward a big challenge.