Occasionally I read interesting things so I've decided to start reviewing some of them here on my blog. The following is a review of Jeffrey Rothfeder's book Driving Honda.

Why should you read this book? You want to create a culture of improvement, you don't care about convention. You're curious how a blacksmith's son who dropped out of school to work as a mechanic's apprentice, enrolled at a technical college only to be expelled for blowing off exams, who continued sneaking back into classes only to stop when he had "learned enough", managed to become an industrial titan who upset the automotive industry and took over the motorcycle and automotive racing world.

Soichiro Honda

I hinted at Honda's interesting early life, but his wandering nature and relentless enthusiasm not only lead to personal success but infused his company with competitive vigor. The book details Honda's expansion into the US, the first foreign carmaker to produce in the U.S. just as American automakers were fleeing. Honda's extensive history in racing sports, exploding in flames initially but eventually outclassing the competition. From producing small cars derided as motorcycles with four wheels to now being the world's largest producer of engines. To try and capture some of what led to this I'll describe here some Honda concepts.

Honda Way

The philosophy behind Honda can be described as the Honda Way, which I'll paraphrase here.

• individual responsibility
• simplicity over complexity
• decision making based on facts not assumptions
• minimalism over waste
• flat organization
• autonomous teams that are continuously accountable to one another
• perpetual change
• unyielding cynicism about what is believed to be the truth
• specific goals for employees and suppliers and active company participation in helping them achieve them
• borrow from the past to innovate the future

The decision making based on facts not assumptions partially refers to sangen shugi, which means three realities. These three realities refer to Gen-ba, Gen-butsu, Gen-jitsu. The real spot, the real part, the real facts. I'll describe this as going to the site and examining the situation, understanding the situation and its specifics, then using real derived facts and observations to support your decision. This approach has caught on and now we know it as "Gemba walks" where a leader should inspect the situation for themselves even if a specific problem hasn't arisen yet. Making a decision without knowing the real of a situation is dangerous.

Waigaya

Waigaya isn't a Japanese word per se, it's simply what Soichiro used to describe the sound of babble. We can think of it as hubbub. Waigaya has now come to be defined as a system for meetings that aren't necessarily planned. If a problem arises, relevant parties should assemble to solve it then and there. It's important to know that part of Honda's flat hierarchy is a Honda uniform where every worker dresses in matching coveralls.

Soichiro Honda visits his motorcycle manufacturing plant in Marysville, Ohio (1979), the first U.S. factory built by a Japanese automotive firm

The principles of waigaya are as follows.

1. Everyone is equal in Waigaya- the only bad idea is the unspoken one
2. All ideas must be disputed until they are proven valid or vanquished
3. Once an idea is shared, no one owns it, it belongs to everyone
4. At conclusion, decisions and responsibilities are precisely assigned

A waigaya is a discussion of an idea or concern. It can take minutes, or years. It doesn't necessarily offer a solution, but the culture it creates is one of constant questioning of current assumptions. Anyone can call a waigaya but only the group can conclude it.

I'd recommend this book for all the too many things to talk about here. The many anecdotes of management culture, the history of automotive disruption, the peculiar character of Soichiro Honda. The number one reason is because continuous improvement is difficult, many companies fail or only manage to pay lip service. It's not just KPI's and powerpoints. It's people and culture. How does a start-up stay hungry like a start-up when it's spread across a globe? How does decentralization lead to innovation? How is culture generalized and preserved generationally?

My Gemba walk

Now for a personal touch, I bought this book in preparation for an interview with Honda Manufacturing. Prior to the interview I read it twice. The first page opens with a story of the ground breaking of the plant I interviewed at. It was hugely satisfying to see the assembly line with all its humming complexities up close. The white uniforms, the open cafeteria, the bullpen setup where everyone including the plant management had an open desk.

I suppose for full disclosure I should mention I was dead in the water before I got there. Although I was interviewed by 6 people, the only personal interaction was reading of questions and furtive eye contact. The final question I won't forget, "What do you know about Honda?"