To understand the difference between the three models, some examples from Toyota are representative. There is no need to talk too much about ‘kaizen’, as Toyota’s process of implementing this improvement model in all its processes is widely known.

In terms of an example of ‘kaikaku’ applied to Toyota, we can go back to the first implementation of a factory in the United States. This involved installing a familiar technology in a totally new environment. The implementation was a success which has often been attributed to the business insight of Eiji Toyoda, who was responsible for this decision. Years later, he himself admitted that such a decision is a gamble that you take because you have a conviction and commitment leading you to believe that the business needs it. However, as in any gamble, no one has all the information to be right and, consequently, you don’t know whether you are going to win or lose until you carry it out.

Finally, the most recent and obvious example of ‘kakushin’ is the company’s launch of its first hybrid vehicle. The Prius model was launched at a time when the technology was not fully developed and the acceptance of such a vehicle could not be foreseen. Nevertheless, they were the first to develop a technology in production models which many others are now copying.

In short, given the need for progress in our organisations, it is important that we know what type of improvement we need to apply in each case. Otherwise, it will be difficult for us to achieve our objectives sustainably and in the long term.