5 Replies Latest reply on Mar 11, 2010 10:02 PM by RDCushing

    Toyota and the problem with silo-based organizational architectures

    dustinmattison Apprentice

      It is beginning to look like Toyota’s current corporate structure is inherently flawed. Recently, the Los Angeles Times ran an article with more disturbing information from past Toyota insiders. John Jula, a former Engineering Manager at Toyota’s technical center in Ann Arbor, Michigan, said, "You know the joke that every bank branch has a president -- well, every Toyota facility has a president, and one can't tell another what to do."

      Ralph Vartabedian and Ken Bensinger, who authored the Los Angeles Times article, referred to Toyota’s overall corporate structure as “fractured” and its business units as “fiefdoms,” and Robert Bea, a UC Berkeley professor who is studying the Toyota situation in a graduate-level engineering class, said, “The cultural and organizational problems affecting Toyota are similar to those that allowed NASA and the Army Corps of Engineers to ignore structural issues leading to the Columbia space shuttle and Hurricane Katrina disasters.” Bea went on to say, "It's what I call arrogance, indolence and ignorance. With those three, you have an explosive combination." http://logipi.com/public/item/251748

      Do you agree that silo-based organizational architectures are flawed? What are the alternatives?