Skip to main content

Driving Honda - further thoughts

While I am an avid reader of business-books, I had never heard of this book and it was quite by chance that I even picked it up. And am glad I did.  Driving Honda by Jeffrey Rothfeder is a fabulous read.
It starts off from the founder Soichiro Honda and his passion for everything mechanical and how he got Honda to where it is through all the ups and downs. From there it looks at the culture, the kind of people they employ, what is their approach to various aspects and beautiful nuggets of Honda that I had no idea about. The story of how the founder found an able partner to work with was inspirational as well.
The concept of waigaya - deserves an explanation by itself - is about how Honda is so much of a bottom up organization - this was one great piece which I loved. (more about this in a later post - as this is one of the things which has come up in many of the recent works which I have handled). The process ensures a lot of disagreement, debate and resolution and they have rules. The books has a lot of examples of how this has worked for Honda. And wherever a problem happens, waigaya is the first thing they resort to. And it ensures that every small idea that emanates from the floor is heard and taken forward as appropriate.
The other things - which are fairly common in Japanese companies - like Gen-ba, Gen-butsu and Gen-jitsu and 'Sangen Shugi' are also touched upon. And all of these are principles worth knowing by any company. 
There is a bit of a bonus on Charles Handy and the Sigmoid curve. The story of the design of the Ridgeline - was a lovely story.
It between it also takes examples of other companies - which to me - felt like a distraction.
What I understood about Honda is that it is a fairly contrarian company - and it does many things in a different way because it believes that this is the right way to do it regardless of the way the market looks at it. It remains one of the automakers where R&D exists as a separate function. It remains at lower automation levels than its rivals. And so on. 
As a company if you are doing everything like the competition - what is the point? That was a significant takeaway. And apart from that what makes this book a must read - whether you run a start up or a retail firm or a technology firm - is that there is much to learn from Hondas as a company which has thrived in many environments around the globe and continues to learn and perform in virtually every market it has been part of. And how does a company survive across generations - what better way to learn from a company that is doing it day in and day out.

Comments

Popular posts from this blog

The man who saved Pumpelsdrop

This was a story we had in college if I am not mistaken. Perhaps it was in school, but a delightful story it was. The story goes somewhat like this ( reproduced from here ), but the college version we had was slightly different from this.  I t was a dull, gloomy and a depressing morning in a town named Pumpelsdrop in northern England. The Great Depression had brought all the businesses to a standstill. The bored automobile dealer was spending time alone, as usual. But, this seems to be an unusual morning as an odd entity (customer) appeared on the horizon. A man in a bright suit walks up to the dealer and says, "I need to buy a Rolls Royce Phantom II. We have a business conference coming up and I need to impress my customers". Then proceeds to pay 10% of the deal with a single check for 2000 pounds. The rest he says will pay when he takes the delivery.   The auto dealer was stunned. He was delighted to hear that someone is holding a business conference of some kind and

The Mintzberg triangle

At a recent training, someone spoke about the Mintzberg triangle. I located it here . Image from that page reproduced here. The page linked above has a better explanation of diagram above, but what intrigued me was that the triangle exists for practically anything. The facilitator referred to this in the context of facilitation. Of how facilitation has science, craft and art to it. That is so true,  I thought. Worth a thought! Need to read of Mintzberg though...

Waigaya and Sangen Shugi - Honda

Two big takeaways from Driving Honda were Waigaya and Sangen Shugi. A few days ago, we were working on a strategy module for a company. As we leafed through old and new theories and books around the same - one comment which caught my eye was Henry Mintzbergs comment where he says "Strategy is like weeds, it has to grow all around your company" A lot of times organisations dip into their pool of employees (and sometimes customers) and solicit ideas from them. This happens either at an offsite or a meeting or some quarterly review and the ideas pile up. Most companies today have an innovation program that encourages bottom up ideation. Many of these ideas are future strategy - provided someone is listening. Sometimes these ideas are not immediately implementable - but if one keeps looking, there might be valuable stuff in there. And if (post such programs) ideas die very often, the motivation of someone to keep doing it will also diminish. Waigaya is what Honda call