Accelerating cross-functional alignment: A new workplace strategy at Toyota

Abstract

True innovation in workplace strategy requires alignment among the key supporting areas of corporate real estate (CRE), information technology (IT) and human resources (HR) in developing solutions that support key business goals and strategies. Although cross-functional alignment has been advocated by the industry for many years, not much has been discussed about the role of alignment in workplace innovation, or how to align for innovation. This paper presents a case study of how Toyota's CRE function led a shift in functional alignment by embracing a fully collaborative and integrated approach to workplace strategy development. Following a process consistent with the ‘Toyota Way’, the team employed a data-based approach to create a common focus across functions, a deep understanding of key interdependencies, a rationale for integration and opportunities for workplace innovation. This case study describes how Toyota aligned to develop and pilot a new, fully-integrated workplace strategy. Aside from the success of the pilot, one of the key benefits of the cross-functional alignment was that it prepared each function to lead change and respond to business events that were unanticipated, including a culture change initiative and the relocation of the company headquarters to Plano, TX. While the early alignment efforts created a solid foundation for sustainable change, the nature of the alignment continues to evolve as the organisation tackles its current challenge of integrating new cultural priorities into all aspects of the workplace strategy. Based on the Toyota experience, the authors provide some insights into the different types of cross-functional alignment that occur, the different types of workplace innovation that an organisation may desire and how the fit between the two is important in achieving success.