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Performance Management Reform at Toyota Motor North America

Toyota’s entire competitive landscape is beginning to shift. Toyota is no longer just an automotive manufacturer; it is transforming into a mobility company. As the company embarks on this transformation, it is critical to have agile programs and processes in place that will facilitate this growth and transformation for the organization and team members. This chapter discusses the impetus for performance management (PM) reform at Toyota; this involves how the company’s PM process was carefully studied and reviewed in order to glean insights and pain points. Process design and piloting of Toyota’s new PM process are discussed, followed by implementation, lessons learned, and potential future directions for PM at Toyota.