2 key ingredients to business resilience

On March 11, 2011, a 9.0-magnitude earthquake struck off Japan’s northeast coast. The tsunami that followed swept through towns and factories, decimating the country and taking many lives. The moment also brought Toyota, one of the most disciplined production systems in the world, to a halt.

Over 650 supplier sites were damaged in the wreckage which meant that nearly 1,200 parts went offline, and global production plunged by 70%. For a company famous for precision and efficiency, the disruption would be a significant test of resilience.

Toyota got to work, following the ethos of what they called The Toyota Way.

First, they focused on people. Teams were sent to check on employees, suppliers, and local communities. Toyota offered support by sending engineers, materials, and even tools to help partner factories rebuild.

Then they turned to learning. Every disruption was mapped, studied, and documented. The focus was on small, steady improvement to redesign the system itself. They built new visibility tools to track parts through every tier of the supply chain, added buffers for critical components, and even shared those lessons with competitors to strengthen the wider industry.

By the end of the year, Toyota was back to full production. And, more importantly, they were stronger. Respect for people gave them unity, and continuous improvement gave them adaptability.

Toyota’s response to the tsunami is an excellent reflection of the ideal that had been put in place a decade earlier, when they launched The Toyota Way. At its heart are two deceptively simple principles:

1. Respect for people

2. Continuous improvement (The Japanese word is “Kaizen”)

These commitments keep Toyota adaptable, humble, and strong through a philosophy of preventative resilience. That means doing the work early so we can respond with clarity, not panic.

Respect for people.

Part 1 of Toyota’s foundation means believing that everyone has something to contribute and each person is part of the system’s intelligence.

Even the most junior line worker has the authority to stop the production line by pulling what’s known as the Andon Cord if they notice something off. A small scratch, a loose screw, a strange sound, and that person can halt everything.

If the cord is pulled, the production line stops, and the company looks to what it needs to learn.

That ethos tells us much about Toyota’s culture. A simple reminder that every employee’s awareness matters, and that they’re trusted! It also means that everyone is trained and trusted to solve the problems, leaders are measured by how well they grow others, and titles don’t protect anyone from giving or receiving feedback - only the truth does.

Kaizen

Part 2 of the Toyota Way is continuous improvement. It’s embodied through the Japanese word “Kaizen” as a way of life. Kaizen translates to “change for the better” meaning that it’s about consistent and continued growth. It’s the idea that progress happens through daily nudges.

After World War II, Toyota had to make do with tight budgets. Everything that needed to be fixed, adapted, and evolved would happen within certain constraints. So they built a system that rewarded observation and experimentation at every level.

If something could be done 1% better, they’d find it. Not once a year, but every day.

The Kaizen mindset rests on these key ideas:

1. Change is everyone’s job and improvement is a shared responsibility.

2. No process is ever perfect and each day is an experiment.

3. Small wins compound, so tiny refinements add up to transformational outcomes.

Kaizen is an obsession with learning and asking what one small thing could be better today….and then doing it.

That’s what keeps Toyota nimble through global shocks, supply chain breakdowns, and cultural shifts.

These two pillars aren’t separate. They feed each other.

Respect gives people safety to notice, question, and act while Kaizen gives them purpose, direction, and growth. Too much Kaizen without respect and people burn out. Too much respect without Kaizen and we drift into comfort and complacency.

Demanding growth without breaking spirit is a delicate dance that every resilient leader, parent, or organization has to master. Here are some ways to build that resilience into our working lives:

1. Our own Andon Cord. Notice early. When we feel stretched, frustrated, or off-balance, we need to stop the line with a pause before things escalate. Reflection beats repair every time. Find the space with mindfulness, breathing, and meditation. Only that space allows us to notice the present and work out what we need to do to adjust. Pulling that cord means we take time out to prioritize pause.

2. Practice Kaizen. Each day, we can improve one thing by 1%. Simplify an email template, refine a habit, or remove a small friction from our day. Over a year, those 1% shifts compound into major growth. Atomic Habits, the wildly popular book from James Clear, talks about the exact same thing. What’s one thing we can do today to improve?

3. Respect in action. Once a week, we can show deliberate and mindful respect to someone on our team or in our life by asking for their perspective and truly listening. Curiosity is the gateway to empathy and connection because, when people feel seen, they stay engaged. And engagement fuels connection, which supports resilience.

4. Reflection. Reflection is underrated because it’s our greatest opportunity to learn. It works when things go well, and even better when they don’t. I have a mantra that negative feedback is much more valuable than positive feedback. Let’s take time for the feedback.

Preventative resilience is what happens when we stop waiting for a crisis to remind us what matters. Instead, we build systems (in both our businesses and within ourselves) that can navigate change and disruption with poise and grace.

And if Toyota can build a resilient and nimble organization that takes a breath, we can surely find a few seconds to pause too.

Until next time friends, stay resilient.

Carré @ Resilient Minds

PS - I’m always inspired by organizations like Toyota that are committed to developing their people and processes. If your business also wants to invest in helping people be at their best, let’s chat about a workshop or webinar for your teams. Reduce burnout, anxiety and stress and have your team ready to tackle any challenge.