Jeffrey K. Liker

Hourensou: A Japanese word made up of three parts: “hou” (hou koku—to report), “ren” (renroku—to give updates periodically), and “sou” (sou dan—to consult or advise). Toyota stresses the importance of sharing information at all levels of the organization as well as the importance of managers staying informed about the activities of their subordinates. As a result, Toyota managers strive to find efficient ways to get information fed to them and to give feedback and advice to help train and develop people. While there is no single methodology for accomplishing this, many Toyota executives and managers ask their subordinates to give daily reports.