Question

How does Toyota organize itself to share information across divisions and with stakeholders? How does it convey its identity and narrative to the public? Describe the communication best practices of Toyota.

Answer 1

To share information across divisions and with stakeholders Toyota organizes itself in a systematic manner so as to ensure that information is passed on in a structured manner across divisions and to its different stakeholders like employees, shareholders, vendors, suppliers, lenders etc. The company puts emphasis on simple communication across divisions and uses a web of social networks to ensure that communication flows smoothly and that everybody knows everything. The company has a strict hierarchy in this regard but at the same time gives employees the freedom to push back as well to ensure transparent and real time communications. Information flows freely up and down the hierarchy.

Toyota conveys its identity and narrative to the public by focusing on the element of trust in all its communications. The company’s competitive advantage is quality and reliability of its cars and this is the basis of its identity and the core of its narrative to the public. Its narratives are based on its underlying values and this helps to further strengthen the level of trust and confidence that public has on Toyota as a product and as a brand.

The communication best practices of Toyota are based on the concept of transparent and open communication. There is a free flow of information within the organization and with the stakeholders of the organization. The company makes use of human networks and not virtual networks to disseminate information. Further information is disseminated laterally and this ensures that knowledge is diffused in all directions within the company. Employees are given the freedom to voice opinions that are contrary in nature. The company has also created support mechanisms to augment and bolster its communication networks.