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XPERT PERFORMANC
Charting Your Course to Higher Performance

Motivating Sustained High Performance
Psychological Lessons from Toyota
Dr. Robert Karlsberg
Dr. Jane Adler

”The real difference between success and failure in an organization very often can be traced to how well the organization brings out the great energies and talents of its people.”

On February 2004, the Santa Clara
Convention Center echoed with the powerful rhythm of Taiko drummers as 5,000 employees and guests of New United Motors Manufacturing
International (NUMMI) gathered in the main hall.
The lavish party celebrated NUMMI’s first

Thomas J. Watson, Jr.

GM’s existing supplier relationships and large dealer networks.
Yet, in our view, NUMMI’s greatest contribution has not been to the balance sheets of either General Motors or Toyota — although both companies have benefited greatly from the

20 years in business. But for those familiar with

venture. Instead, we believe that NUMMI’s

the history of NUMMI -- the first collaboration

greatest contribution has been to demonstrate

between General Motors and Toyota -- there

how specific changes in management strategy

was much more to celebrate that just another

can significantly and rapidly increase employee

automaker’s anniversary.

engagement and improve business productivity.

When it was first proposed in the early
1980’s, NUMMI was designed to provide

A Brief History
After almost 20 years of operations,

General Motors with insight into Toyota’s

General Motors’ Fremont, California Plant was a

production system and management

disaster. A huge facility of over 5 million square

techniques. In return, Toyota would have the

feet, the plant was bleeding red ink. Its work-

opportunity to establish its first manufacturing

force of 5,000 employees averaged 20 percent

operations on US soil and would benefit from

absenteeism, thousands of grievances, and 3 to



References: 1. Cameron, Kim S. and Quinn, Robert E. (1999) Diagnosing and Changing Organizational Culture. New York: Addison-Wesley 2. Liker, Jeffrey M. (2004) The Toyota Way: 14 Management Principles From the World’s Greatest Manufacturer. New York: McGraw-Hill 3. O’Reilly, Charles A., III and Pfeffer, Jeffrey (2000) Hidden Value. Harvard Business School Press © Dr. Robert Karlsberg & Dr. Jane Adler www.ExpertPerformanceSystems.com 9.

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