Home > Community> The Lean Post> How the A3 Came to Be Toyota’s Go-To Management Process for Knowledge Work (intro by John Shook)

How the A3 Came to Be Toyota’s Go-To Management Process for Knowledge Work (intro by John Shook)

by John Y. Shook & Isao Yoshino
August 2, 2016

How the A3 Came to Be Toyota’s Go-To Management Process for Knowledge Work (intro by John Shook)

by John Y. Shook & Isao Yoshino
August 2, 2016 | Comments (11)

In the late 1970s, Toyota decided to invest in cultivating the managerial capabilities of its mid-level managers. Masao Nemoto, the same influential executive who led Toyota’s successful Deming Prize initiative in 1965, led a development program especially for non-production gemba managers called the “Kanri Nouryoku Program” – “Kan-Pro” for short. Nemoto chose to structure this critical management development initiative around the A3 process.

The A3 is well established now in the lean community. As a process, as a tool, as a way of thinking, managing and developing others. The question often comes up of where did it come from and how did it become a common practice. The basic answer is that it dispersed mainly from Toyota. But how did it become so prevalent in Toyota? And how did it evolve from its humble beginnings as a tool to tell a PDCA quality improvement story on an A3-sized sheet of paper, as it had been commonly used by many Japanese companies since the 1960s?

What had started as a simple tool to tell PDCA stories grew at Toyota into something more: the A3 process came to embody the company’s way of managing in an extraordinarily profound sense. How did this happen?

My first “kacho” (manager) at Toyota (in Japan starting in 1983), Mr. Isao Yoshino, was a member of Nemoto’s four-man team that created and delivered the “Kan-Pro” manager-development initiative that directly answers that question. The program has been unknown outside Toyota … until now.  

—John Shook

Interview with Mr. Isao Yoshino

Q: What was the purpose of the Kanri Nouryoku Program?

A: The main purpose was to nurture “Management Capabilities” of employees who were at manager (kacho) level and above. There were four rudimental capabilities for managers:

  • Planning capability, judging capability
  • Broad knowledge, experiences and perspectives
  • Driving force to get job done, leadership, kaizen capability
  • Presentation capability, persuasion capability, negotiation capability

Q: Why did Toyota decide it needed this program?

A: After introducing Total Quality Control (TQC) in 1961 and receiving the Deming Prize in 1965, TQC-based perspective had taken root widely across the company. In the late ‘70s, Mr. Nemoto (one of the main people
behind launching TQC) noticed that management capabilities and TQC awareness was decreasing among managers, particularly within the non-manufacturing gemba or office divisions. Mr. Nemoto decided to take actions to reinvigorate the managers (especially administrative) and help heighten awareness of their role. And so, in 1978, he formed a task force that promoted a two-year program (the Kanri Nouryoku Program) for two thousand managers from all over the company. I was one of the four staff members on the task force in Toyota City. 

Q: What sort of tools and activities did the Kanri Nouryoku employ?

A: All the managers went through "a presentation session" twice per year (June and December). The officers in charge of each department attended to have a Question and Answer session with the managers. Officers tried to focus on the problems each manager was facing as well as the effort and process needed to solve the problems. Officers focused more on "What is the major cause of the problem?", rather than "Who made those mistakes?” This problem-focused attitude (as opposed to the who-made-the-mistake attitude) of the officers encouraged managers to share their problems rather than hide them.

The key to giving the presentations was that they had to be done using an A3. The managers learned how to select what information/data was needed and what was not needed, since an A3 has only limited space. This helped them acquire the seiri and seiton functions of the 5S concept as applied to knowledge work. A3 was also a great tool for officers. They could easily see, at a glance, all the key points that the presenter wanted to convey. As it is just one single document, you can quickly see from the left top corner to the right bottom of an A3 and grasp the key things the writer wants to communicate. This is something that you cannot get from a written document or PowerPoint presentation.

Q: What was your personal experience with the program?

A: First, I was fortunate to get acquainted with many admirable managers, who inspired me in many ways. I also learned how to express myself more effectively by studying A3 documents from two thousand managers. Strikingly, I discovered that managers whose A3s were excellent were also excellent managers at work.

Nemoto-san highly praised managers who took a risk to report their mistakes (not success stories) on A3s with a hope of finding a solution. Nemoto valued their sincere and proactive attitudes. “Nemoto Lectures” were held for managers three or four times a year. Mr. Nemoto went through every single impression memo from the audience as feedback for his next speech.

Mr. Nemoto also appreciated the efforts by managers who tried to nurture excellent subordinates. This created a new company-wide notion that “developing your subordinates is a virtue.” It was amazing to see managers in their 40s and 50s willing to give 100 percent of their energy to work on hoshin kanri and A3 reporting, because they were convinced the program was practical and useful and worth using to bring themselves up to a higher level. Seeing all this happen at work truly helped me grow professionally.

Q: What was the effect of the program on Toyota?

A: Well for one, every mid-level manager who was involved in this program over the two years came to clearly understand their roles and responsibilities and also learned the importance of the hoshin kanri system. People at Toyota don’t hesitate to report bad news, which has been Toyota’s heritage since day one. The Kanri Nouryoku program has further reinforced this tradition because of its praise toward managers and others who were honest about their mistakes. And after the program was implemented to the back-office managers, the level of their awareness of their role rose up to the same level of that of manufacturing-related managers, which significantly strengthened the management foundation. 

Everybody became familiar with using the A3 process when documented communication was needed – A3 thinking eventually became an essential part of Toyota’s culture. People learned how to distinguish what is important from what is not. 

Editor's Note: Be sure to visit the Lean Post tomorrow for a great followup article to this interview by LEI Chairman and CEO John Shook.

The views expressed in this post do not necessarily represent the views or policies of The Lean Enterprise Institute.
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11 Comments | Post a Comment
RAMKRISHNAN SATHYABAL August 05, 2016
2 People AGREE with this comment

A3

It is a best method of problem history  and also a knowledge bank of future improvements.



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Jan Olofsson August 05, 2016
2 People AGREE with this reply

I agree. Wether it is A3 or A4 that is best size may be discussed. We have both. Problem occurs when You have 2000 or more of them and need to find the information again. Then You need a system of filing them and some kind of database/system to easy search for information. We use an excel database to keep track of them and there topics and it works well.It is easy to find old knowledge and reuse it.



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John Shook August 25, 2016
1 Person AGREES with this reply

Thanks, Ramkrishnan and Jan. The A3 as a process does enable storing knowledge for future use - "reusable knowledge" - but retirieval can be a challenge in itself. The most importantly piece, though, is the learning of the people involved in the moment, in the process.  Also importantly, yes, the size doesn't much matter - A3 or A4 or poster-size, or big white board. The idea was "let's capture our thinking on one sheet of paper." - john 



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Derek Jones August 05, 2016
1 Person AGREES with this comment

I've always presented A3 as a structured problem solving and communication tool...one that's clear, concise, and consistent.  Thanks John for highlighting the connection with 5S, and providing some historical context.



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John Shook August 25, 2016

Thanks, Derek. I think much of the strength of the process & tool is in the flexible usage. It can be - depending on the intent of the user(s) - multipurpose and situational.



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Katie Anderson August 05, 2016

John - Great interview and insights, as always, from Mr. Yoshino.  Thank you for sharing this piece of history, and also for your contribution in sharing A3 thinking more broadly to the Lean world.



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John Shook August 25, 2016

Thanks, Katie and thanks for sharing Yoshino-san's wisdom through your blog, too, - john



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Andrew Bishop August 07, 2016

John,

Thanks for this!  Reading this bit of history gives me some confidence and inspiration as we set out, likewise, to reinvigorate (transform?) our approach to management. 

I think there's a popular misconception that Toyota somehow just "had it" from the start - some sort of revelation or enlightenment and then they were great.  Instead, what Mr. Yoshino portrays is something to which we all have access:  principles and hard work, applied over years.



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John Shook August 25, 2016

Couldn't agree more, Andrew. And as I shared in a later Post referencing Fred Kupke at Yoder Bros., so much depends on cultivating a learner's attitude, recognizing when you don't know the answer and embarking on exploration to discover. - john



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Mark Warren August 12, 2016
1 Person AGREES with this comment

The use of an A3 form size for telling a story or solving a problem goes further back past the 1960's. The Job Methods breakdown sheet for defining a job and what possible improvements might be done used the larger format. The first use goes back to about 1944. The form starts on the left with the 'what is' story and moves across the page applying ECRS (eliminate, combine, rearrange, simplify). The proposed solution ends up in the right hand column. This form was used to 'think out loud' about the ideas for improving a process, and even noting what did not work. It was far messier than the A3 that people are familiar with today...so even the process itself was improved.



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John Shook August 25, 2016

Thank you historian Mark Warren! As referenced above, it's not the size of paper, it's the thinking connected to a process of capturing thinking on paper in a concise, structured way. As you remind us, it's about how to effectively "think out loud togther."  Speaking of the TWI J courses, even the way instructors learned to use the blackboard has a sort of "A3" feel to it. No surprise, since they were all simply trying to learn and teach PDCA. That's interesting, too, though, because the J courses were put together about a decade PRIOR to the formaliztion of P-D-C-A!

And, side topic, speaking of ERCS, somewhere along the way some folks added an "A" (for "add) to ERCS making it ERACS. Know anything about when, how or why that happened?

Thanks - john 



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