I have learnt an incredible amount from Toyota Japan’s management. Their long-term approach was a revelation to me, as was their emphasis on thorough planning, analysis and attention to detail. An important element of their management philosophy that made a big impression on me was the extent to which they involved everyone in the decision-making. The analogy they use to illustrate this is that a tree will only be healthy if its roots get adequate nutrition. They are masters when it comes to thorough and meaningful consultation, therefore project implementation is usually smooth. Everyone involved takes full ownership and is totally committed to their contribution. It is not necessary for the manager to give instructions, the team members know what to do and they do it to the best of their ability.
Their competence in respect of project management impressed me on every occasion. The process to develop a new product, produce and market it contains literally thousands of different elements and variables. To have had first-hand exposure to how they excel in it was very valuable. The quality of their human capital as a result of an excellent education system, of course, is a major contributing factor to their success. No wonder they managed to develop their country, smaller than the Free State and with almost no natural resources, to become the third largest economy in the world. What 140 million people managed to achieve, despite the destruction of their infrastructure during the Second World War, is amazing.
Their commitment to their core value of “respect for all people” has also become an integral and fundamental part of my approach to life. Their politeness, work ethic and professionalism were a source of great inspiration to me. During the difficult times I later experienced at McCarthy, I often thought back to their approach on how severe storms in either an organisation or a person’s life must be dealt with. They often referred to the Japanese proverb which states that the bamboo that bends is stronger than the oak that resists. Aggressive resistance is not part of their culture. Similarly, an absolute “no” does not exist in their vocabulary. Over the years I have learnt that the following expression represents “no”: “Brand-san, frankly speaking, perhaps your request will possibly not be possible.”
My interaction with Toyota dealers across South Africa had been an enriching experience for me. Not only did I learn a lot from them about the retail side of the automotive business, but highly successful entrepreneurs like Barry Streicher, Meyer Benjamin, Fred Weber, Satar Dada and many others earned my respect and admiration. The business approach that they applied with so much success gave me guidance of great value for my future career at McCarthy. Many of my best memories of my 22 years at Toyota relate to my literally hundreds of visits to dealers – small and large. Visits to dealers in the rural areas in particular made for very special moments. It was a wonderful privilege to get to know these unpretentious, salt-of-the-earth people better. Firm handshakes and broad smiles were the order of the day. They overwhelmed me with their hospitality and spoilt me with biltong, droë wors, milk tart and koeksisters.
The quality of their relationships with their customers was a revelation to me. So too was their loyalty and commitment to Toyota. I am absolutely convinced that the strength of the dealer network was one of Toyota’s most powerful competitive advantages.
We always regarded dealers as full and respected members of the Toyota family, and it undoubtedly contributed to their loyalty. Dr. Wessels laid this foundation and he never let an opportunity pass by without reminding them about it. Most importantly, however, dealers were respected for their expertise, and their contribution to Toyota’s success was acknowledged with gratitude and sincerity. It was therefore no surprise that the dealers joined hands with Toyota spontaneously. There was a unifying vision and a relationship based on mutual trust and respect.
During my career at Toyota I realised for the first time the extent to which the political and social conditions in a country may affect the business environment. The widespread political unrest in 1976 and again in 1986, hit the car market for a six each time. The trade sanctions which Japan imposed against South Africa in the mid-eighties affected us very adversely. The Rubicon speech of PW Botha in 1985 had catastrophic consequences in terms of a collapse of business confidence and a further dramatic deterioration in the value of the Rand against international currencies. Persistent labour unrest that often was the offshoot from political agendas affected Toyota’s business adversely. This reality that politics and economics in developing countries are inextricably linked, encouraged me to get involved with broad political and social issues on a constructive basis.
Specific people and events during this period of political turmoil had a big influence on my perspective of South Africa and what was busy happening in the country. I was fortunate to have had close ties with a number of “enlightened” Afrikaners at the time, such as Frederick van Zyl Slabbert, Wynand Malan, Prof. Willem de Klerk, Rudolf Gouws and Christo Nel. My direct involvement with Wynand’s election campaign after he broke away from the National Party and later formed the Democratic Party, strengthened my determination to bring about drastic political reform. My political awakening, fuelled by the conflict between my Christian principles and values and the impact of apartheid on my fellow man, led to me become involved in political activism in my own sphere of influence. At every opportunity I had to influence people in this regard, I made my voice heard.
One event, during a visit to Japan late in 1987, I will not easily forget. The main purpose of my visit was to try to convince Toyota Japan (TMC) to relax the trade sanctions that applied to us. Immediately after my arrival that Sunday I was taken to a movie theatre, where Sir Richard Attenborough’s acclaimed film Cry Freedom was showing. It was a hugely emotional experience for me and I must admit that I shed a few tears in the darkness of the theatre over the sorrowful state of my country and its people.
During the meetings on the Monday they asked me to explain the main accusations against the South African government, as expressed in the film. I was caught between a rock and a hard place. From a moral perspective, our country’s political dispensation and the concomitant oppression of black South Africans were indefensible. I could not bring myself to condone the government’s actions. My plea to TMC was to continue with the supply of components for production at our plant in Durban, in order to enable us to keep some 6 000 workers employed. I made it clear that the Zulu workers at our plant supported 12 people in their households on average. Finally, I gave them the assurance that Toyota South Africa’s management team, with Dr. Wessels at the forefront, was busy playing an important role in applying pressure to accelerate the process of political reform. At the end of the negotiations, I was very grateful that TMC decided not to significantly cut their parts supply to us.
Although Toyota set the one market share record after the other in the eighties, in 1985 we discovered with shock that we only held the fifth position in terms of customer satisfaction. It made us realise that our market leadership was not sustainable, and that drastic intervention was necessary. The highly successful “Toyota Touch” programme was launched under my guidance in February 1986. This initiative aimed to optimise customer satisfaction and retention. It subsequently became my new passion, as well as a core element of my personal business philosophy, as I will discuss more fully in a later chapter on leadership in customer satisfaction.
Colin Adcock retired in June 1986. Dr.Wessels’s son Bert took over as group chief executive, while I was appointed managing director of Toyota SA Marketing. I was 36 years old and felt fortunate and blessed that my career dream had been realised. Ralph Broadley was appointed managing director of Toyota Manufacturing. Ralph was an absolute expert in his field, and as a professional manager in a manufacturing environment he was in a class of his own. His focus on product quality and our progress with the Toyota Touch programme allowed Toyota to move into the first position on the national customer satisfaction index in 1989. It was a milestone since we knew that it would provide Toyota with a platform for sustainable success in the market. During this time, our market share also peaked at 30%.
On 22 July 1991 Dr. Albert Wessels died of cancer. It was a sad day that will remain with me always. Despite the fact that he was already 82 years old, he still executed his role as chairman of the group with wisdom, purpose and competence. Even on his deathbed, he spoke to me about his future vision for Toyota. He was indeed like an eagle – visionary with a broad perspective, and a social awareness that was far ahead of most of his contemporaries in the