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Sustainability is the ability of an organisation to meet the needs of the present without compromising the ability of the future generation to meet their own needs. A sustainable organisation is one that decreases the uses of physical resources, reduces wastage of resources and enables and recycling of resources.
Due to the GFC, increased competition and a rise in oil and commodity prices, Toyota felt that they needed to be more sustainable in their operations in order remain as one of the leading car manufacturers, instead of continuously mass producing cars to remain ahead of the production schedule.
Kotters theory is an eight step process that allows managers to analyse any change and implement a detailed process. It can applied to Toyota in the following way.
The first step is to establish a sense of urgency, which Toyota did by identifying the need to switch to sustainability due to increased competition and rising oil prices.
Secondly, a powerful guiding team needs to be formed, which consisted of the CEO Max Yasuda and his senior management team at Toyota.
Thirdly, a vision needs to be created. Toyota's vision was to become 'the most admired and respected company' through their switch to sustainable operations.
The fourth step involves communicating the vision to all of Toyota's stakeholders, which included business partners, employees and customers.
In the fifth step, Toyota empowered their employees through their use of the Eco-Point system, which rewards employees for promoting environmental awareness through the purchasing of the environmentally friendly products that Toyota had to offer.
The sixth step involves creating short term wins. Toyota establised the goal to make more fuel efficient cars and they celebrated this signifcant milestone through their production of the third generation Prius and Camry.
The seventh step involves building on the change by consolidating all changes, which was done through Toyota's continued development towards advancing hybrid technology and investing in cleaner technologies to reduce emissions.
The final step is to anchor the change, which was done by creating a positive culture around the change and making it a part of the everday culture. A way in which this was done was the introduction of the Toyota Environmental Dealership, which embed sustainable business practices in the daily operations of Toyota's Dealer network.