Toyota Kata

1. Toyota's success stems from its unique improvement kata and coaching kata

Toyota's success is not due to sudden innovation or having airtight plans, but about the ability to execute more effectively in the face of unforeseeable obstacles and difficulties.

The improvement kata is Toyota's systematic routine for continuous improvement and adaptation. It involves:

• Grasping the current condition
• Defining a measurable target condition
• Moving toward that target through rapid PDCA cycles

The coaching kata is how Toyota teaches and reinforces the improvement kata throughout the organization. Key elements include:

• Mentor-mentee dialogues
• Learning by doing on real processes
• Frequent, short coaching cycles using the "five questions"

These two kata form the foundation of Toyota's management system and explain its ability to:

• Continuously improve quality and productivity
• Adapt quickly to changing conditions
• Develop capable problem-solvers at all levels

2. The improvement kata is a scientific approach to continuous improvement

The scientific method consists of formulating hypotheses and then testing them with information obtained from direct observation.

The improvement kata follows the scientific method:

• Define a target condition (hypothesis)
• Take steps toward it through experiments (PDCA cycles)
• Learn from both successes and failures

Key principles:

• Go and see the actual condition firsthand
• Use facts and data, not opinions
• Change only one thing at a time to see cause and effect
• Expect and learn from problems/obstacles

Benefits of this approach:

• Develops deeper understanding of processes
• Reveals hidden problems and improvement opportunities
• Builds problem-solving capabilities in people
• Leads to more effective and sustainable improvements

3. Target conditions drive improvement and reveal obstacles

A target condition works like a pair of eyeglasses that helps you focus and see what you need to do.

Target conditions:

• Describe a desired future state for a process
• Are more specific than high-level goals or KPIs
• Have a clear achievable-by date (usually 1-3 months out)

Elements of a good target condition:

• Process steps, sequence, and times
• Number of operators, shifts, equipment
• Key process metrics (e.g. cycle time, changeover time)
• Where 1x1 flow or pull systems will be used

Benefits:

• Provides clear direction for improvement efforts
• Reveals obstacles preventing achievement of the desired state
• Allows frequent checking of actual vs. target condition
• Motivates creative problem-solving

4. PDCA cycles are the engine of learning and adaptation

Every step = a PDCA cycle

Plan-Do-Check-Act (PDCA) cycles:

• Are how Toyota experiments and learns
• Should be done in rapid succession (hours/days, not weeks/months)
• Focus on one small change at a time

Key principles:

• Expect the unexpected - the path to the target condition is unclear
• Learn from both successes and failures
• Adjust based on what you learn with each cycle

Benefits:

• Allows quick detection and correction of problems
• Develops deeper understanding of processes
• Builds problem-solving capabilities in people
• Leads to more effective and sustainable improvements

5. Leaders are teachers who develop people's capabilities

The primary task of Toyota's managers and leaders does not revolve around improvement per se, but around increasing the improvement capability of people.

Leader as teacher:

• Spends 50%+ of time developing people's capabilities
• Teaches through mentor-mentee dialogues, not lectures
• Focuses on how people approach problems, not just results

Key mindsets:

• Problems are opportunities for learning and development
• The organization's strength lies in its people's capabilities
• Teaching is part of every leader's job, not just HR

Benefits:

• Develops problem-solving capabilities throughout the organization
• Creates a culture of continuous learning and improvement
• Ensures sustainability of the improvement system

6. The coaching kata uses mentor-mentee dialogues to teach the improvement kata

The mentor guides the mentee in applying the improvement kata through a back-and-forth dialogue over a period of time, which has sometimes been compared to a game of catch.

Key elements of the coaching kata:

• Frequent, short (15-minute) coaching cycles
• Use of the "five questions" to structure dialogues
• Focus on one target condition/mentee at a time

The five questions:

1. What is the target condition?
2. What is the actual condition now?
3. What obstacles prevent reaching the target condition? Which one are you addressing now?
4. What is your next step? (Start of next PDCA cycle)
5. When can we go and see what we have learned from taking that step?

Benefits:

• Provides structure for teaching the improvement kata
• Allows mentor to understand mentee's thinking and provide appropriate guidance
• Reinforces scientific thinking and PDCA

7. Developing new organizational behaviors requires systematic practice

We learn habits, automatic reactions, by repeatedly practicing behaviors.

Key principles for behavior change:

• Learning by doing on real processes, not just classroom training
• Frequent, short practice sessions (daily if possible)
• Clear target conditions for both processes and coaching
• Regular reflection and adjustment of the teaching approach

Stages of skill development:

1. Awareness (basic understanding)
2. Application (can carry out the improvement kata)
3. Teaching (can coach others in the improvement kata)

Common obstacles:

• Reverting to old habits (e.g. making action item lists)
• Discomfort with uncertainty and iteration
• Viewing the effort as "just another project"

8. Improvement kata thinking applies at all levels of the organization

The improvement kata finds application at all levels.

Applications beyond the shop floor:

• Product development
• Administrative processes
• Strategy deployment
• Organizational change efforts

Key principles remain the same:

• Grasp the current condition
• Define a clear target condition
• Move toward it through rapid PDCA cycles
• Use coach-mentee dialogues to develop capabilities

Benefits:

• Creates alignment throughout the organization
• Develops problem-solving capabilities at all levels
• Improves adaptability to changing conditions

9. Metrics and incentives alone cannot drive continuous improvement

There is no combination of outcome metrics and incentive systems that by themselves will generate Toyota-style continuous improvement and adaptation.

Limitations of traditional approaches:

• Focus on outcomes obscures process-level realities
• Create pressure to "hit the numbers" rather than improve
• Don't develop problem-solving capabilities in people

Toyota's approach:

• Uses process-level metrics to guide improvement efforts
• Focuses on developing capabilities, not just achieving targets
• Sees problems as opportunities for learning and improvement

Key mindset shifts:

• From "manage by results" to "manage by means"
• From "implement solutions" to "develop problem-solving capabilities"
• From "avoid problems" to "surface and solve problems"

10. Cultural change starts with senior leadership practicing new behaviors

If the top does not change behavior and lead, then the organization will not change either.

Key steps for leaders:

1. Learn and practice the improvement kata themselves
2. Establish an "advance group" to develop internal expertise
3. Create a plan for spreading the kata throughout the organization
4. Coach and mentor others in the new behaviors

Common pitfalls to avoid:

• Delegating the change effort to a "lean team"
• Relying solely on classroom training or consultants
• Expecting quick results without sustained effort

Benefits of leader-led change:

• Demonstrates commitment to the new approach
• Develops deep understanding of what's involved
• Creates alignment throughout the organization
• Builds momentum for sustained culture change

Last updated: January 25, 2025