"This is the definitive book on the secret to Toyota's phenomenal success, with important lessons for all leaders." —Noel Tichy

By almost any measure, Toyota is a model of extreme performance among the world's best manufacturers. The company is hugely profitable, known for strong engineering, durability, and reliability, and is on track to replace GM as the world's largest automaker. What explains this phenomenal success?

Based on six years of research and unprecedented access to Toyota facilities, documents, and activities—as well as hundreds of interviews with employees and leaders of the company—Extreme Toyota explains what makes Toyota great and what you and your business can learn from its success.

Though Toyota is well known for its innovative production process—the Toyota Production System (TPS)—there is much more to its success than just its nimble, cost-effective production practices. The authors of Extreme Toyota explain that the secret to Toyota's success lies in a series of striking paradoxes or contradictions that are actively encouraged by Toyota's management. For example:

• Toyota cultivates frugality and thriftiness AND spends big to develop people and projects
• It is hierarchical and bureaucratic AND encourages dissent
• It aims for stability AND fosters a mindset of paranoia
• It moves forward slowly and gradually AND makes big leaps
• It is operationally efficient AND filled with redundancy

This creative clash of innovative production practices and traditional corporate culture not only works, it works extraordinarily well. Toyota manages to turn these seeming contradictions into unlimited growth and success. While most companies seek to stamp out internal contradictions and paradoxes, Toyota actively encourages them, resulting in continuous innovation and constant renewal. If you want to grow your own culture of contradiction and success, take a look inside the world's best manufacturer.

"This is the definitive book on the secret to Toyota's phenomenal success, with important lessons for all leaders." —Noel Tichy

By almost any measure, Toyota is a model of extreme performance among the world's best manufacturers. The company is hugely profitable, known for strong engineering, durability, and reliability, and is on track to replace GM as the world's largest automaker. What explains this phenomenal success?

Based on six years of research and unprecedented access to Toyota facilities, documents, and activities—as well as hundreds of interviews with employees and leaders of the company—Extreme Toyota explains what makes Toyota great and what you and your business can learn from its success.

Though Toyota is well known for its innovative production process—the Toyota Production System (TPS)—there is much more to its success than just its nimble, cost-effective production practices. The authors of Extreme Toyota explain that the secret to Toyota's success lies in a series of striking paradoxes or contradictions that are actively encouraged by Toyota's management. For example:

• Toyota cultivates frugality and thriftiness AND spends big to develop people and projects
• It is hierarchical and bureaucratic AND encourages dissent
• It aims for stability AND fosters a mindset of paranoia
• It moves forward slowly and gradually AND makes big leaps
• It is operationally efficient AND filled with redundancy

This creative clash of innovative production practices and traditional corporate culture not only works, it works extraordinarily well. Toyota manages to turn these seeming contradictions into unlimited growth and success. While most companies seek to stamp out internal contradictions and paradoxes, Toyota actively encourages them, resulting in continuous innovation and constant renewal. If you want to grow your own culture of contradiction and success, take a look inside the world's best manufacturer.

HIROTAKA TAKEUCHI, EMI OSONO, and NORIHIKO SHIMIZU are business school graduates from the University of California, Berkeley, The George Washington University, and Stanford University, respectively. They are professors at one of Japan's top business schools, Hitotsubashi University, Graduate School of International Corporate Strategy (www.ics.hit-u.ac.jp). Takeuchi works closely with Professor Michael E. Porter of Harvard University, with whom he coauthored Can Japan Compete? (2000). All three authors are also frequent speakers at conferences and seminars around the world.