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Diversity FAQ’s 19: How is Diversity connected to Business Strategy? Part IV – ‘Leadership’


“Leadership works through people and culture…”Michael McGrath, inspirational speaker, performance catalyst and change agent

Let’s take a look at a case in question in the story below to help en-flesh the quotation above:

On the 11th of February, 2010, the Economist in an article entitled: ‘Toyota – Accelerating into trouble’, reported the woes of Toyota showing the failure of the Japanese Board to spot a mechanical fault with the new Toyota Prius’ run-away acceleration and braking system. The fault lead to customer complaints and law suits that is reported to total approximately $5 billion, with Toyota having to recall approximately 8 million vehicles world wide. The overall market value loss totalled approximately $30 billion according to suggested figures. In its overall evaluation of what might have gone wrong with Toyota, the Economist highlighted a cultural issue where leadership was based on “a rigid system of seniority and hierarchy” which prevented “new ideas” from questioning “the way things worked”.

In a nutshell, what supposedly went wrong with Toyota was the fact of the existence of a culture where Toyota staff ‘on the ground’ were disconnected from their leadership, such that the over-respectability for leadership, a culture perpetuated by the leadership themselves, prevented the sharing of basic information on the goings-on ‘on the ground’ that would have gone a long way to nipping the arising problems described in the bud had their existed a culture where leadership worked in, with and through its staff. Continue reading

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