Toyota’s move to Texas a good decision

A core role of the CEO is to ensure that the company has the proper resources to be successful. Most commonly people think of capital and people as the two primary resources needed. Related to the people side but sometimes missed by CEOs is their role in providing the best possible work environment to drive performance. I was reminded of this when reading the recent announcement by Toyota that they are consolidating multiple North American offices into a single headquarters in Plano (Dallas area), Texas.

While technology has made distributed organizations easier to operate, I am still a big believer in the value of having a single location where people come to interact with their fellow employees. Business is all about people and the complex relations between them. The best functioning organizations have leadership teams who are closely aligned and function effortlessly. That positive behavior takes significant face time to develop. I bet that Toyota’s move will pay off down the road with a better functioning North American operation. 

Related article:

It’s Not About Incentives: Toyota’s Texas Move Is A Corporate-Culture Gambit (Forbes)

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