How Toyota solves problems, creates plans, and gets new things done while developing an organization of thinking problem-solvers.

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While much has been written about Toyota Motor Corp.’s production system, little has captured the way the company manages people to achieve operational learning. At Toyota, there exists a way to solve problems that generates knowledge and helps people doing the work learn how to learn. Company managers use a tool called the A3 (named after the international paper size on which it fits) as a key tactic in sharing a deeper method of thinking that lies at the heart of Toyota’s sustained success.

A3s are deceptively simple. An A3 is composed of a sequence of boxes (seven in the example) arrayed in a template. Inside the boxes the A3’s “author” attempts, in the following order, to: (1) establish the business context and importance of a specific problem or issue; (2) describe the current conditions of the problem; (3) identify the desired outcome; (4) analyze the situation to establish causality; (5) propose countermeasures; (6) prescribe an action plan for getting it done; and (7) map out the follow-up process.

The leading question Toyota has designed a two-page mechanism for attacking problems. What can we learn from it? Findings The A3’s constraints (just 2 pages) and its structure (specific categories, ordered in steps, adding up to a “story”) are the keys to the A3’s power.

Though the A3 process can be used effectively both to solve problems and to plan initiatives, its greatest payoff may be how it fosters learning. It presents ideal opportunities for mentoring.

It becomes a basis for collaboration.

However, A3 reports — and more importantly the underlying thinking — play more than a purely practical role; they also embody a more critical core strength of a lean company. A3s serve as mechanisms for managers to mentor others in root-cause analysis and scientific thinking, while also aligning the interests of individuals and departments throughout the organization by encouraging productive dialogue and helping people learn from one another. A3 management is a system based on building structured opportunities for people to learn in the manner that comes most naturally to them: through experience, by learning from mistakes and through plan-based trial and error.

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About the Author John Shook is an industrial anthropologist and senior advisor to the Lean Enterprise Institute, where he works with companies and individuals to help them understand and implement lean production. He is author of Managing to Learn: Using the A3 Management Process to Solve Problems, Gain Agreement, Mentor, and Lead (Lean Enterprise Institute), and coauthor of Learning to See (Lean Enterprise Institute). He worked with Toyota for 10 years, helping it transfer its production, engineering and management systems from Japan to its overseas affiliates and suppliers.