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Institute of Directors in South Africa

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28 NOVEMBER 2009
Toyota SA's Johan van Zyl
by Lisa Witepski
Consider this: in the history of the Toyota Motor Corporation, only five non-Japanese have been appointed to the position of Managing Officer. One of them is Johan van Zyl, CEO of Toyota South Africa.

Van Zyl’s accomplishment is a firm endorsement of his leadership style – yet, as a man who condemns the notion of ‘hero leaders’, he is not one to relish the spotlight. Instead, his approach is firmly rooted in pragmatism. It is a down-to-earth ethos that is revealed as he speaks of his family as "just any ordinary family, enjoying time together", or when he mentions that his motto – one which has stood in firm stead – is to avoid worrying about things that he cannot change.

How, then, does he address challenges?

“I find a clear direction, without focusing too strongly on an inflexible end result, then harness the team’s efforts to solve the problem,” Van Zyl answers. What is important here is that they understand the benefits of the action for themselves as well as for the organisation – you will seldom derive true collaboration without true buy in. This is why Van Zyl believes in leading from the front and generating consensus, before consolidating collective effort. “True leadership,” he says, “is about taking a long-term view rather than solving short-term problems. It’s about imparting skills that make it possible for your people to do the job even better than you can.”

These are lessons that Van Zyl has acquired along a journey that involved a stint in academia, before joining Toyota in 1993. His appointment as CEO came nine years later, following a post to managing director: Toyota (SA) Marketing. It has been a good journey, he says: his work in the academic field taught him discipline, and the valuable habit of assessing facts before jumping to conclusions. It has also granted him the opportunity to work alongside mentors like Brand Pretorius, Bert Wessels and Professor Deon de Klerk – but, while Van Zyl has been positively influenced by their examples, he has never "desired to emulate anyone else".

Not even during difficult times?

“I don’t revisit challenges. When something’s finished, it’s over – you have to learn from the incident, and move forward. It doesn’t help to worry about missed opportunities or mistakes – the best you can do is recognise the signs next time around, and use what you’ve learnt from the experience.”

This lack of whimsy has helped Van Zyl tackle the greatest obstacles of his career, including, in 2002, the passing of Toyota’s "beloved CEO" as well as the entry of Toyota South Africa into the global market in 2005, with the introduction of the Hilux. “This was the first time we realised what it would take to be globally competitive,” he explained, adding that his team addressed the issue by formulating a clear, five-year plan, devising specific targets around it, and communicating every aspect of the strategy throughout the organisation.

Global competitiveness remains a topic Van Zyl keeps a close watch on, however. “There’s no escaping the fact that, as part of the global supply network of Toyota and a producer of models for both the domestic and export markets, we operate in a global environment.” On the positive side, this presents a wealth of opportunities for the company – but it also means that standards must remain consistently high. “If cars produced in South Africa are not globally competitive, there’s no reason to maintain a manufacturing plant here,” he points out.

Not that Van Zyl is concerned about the company’s ability to uphold international standards. He believes that South Africa is a country possessing great strengths and rich resources, the most exciting of which is, undoubtedly, its people. That said, he is equally firm about the fact that unemployment and poverty are stumbling blocks standing in the way of economic growth. The answer lies in education – and more specifically, in cultivating an entrepreneurial mindset which lays the foundation for self-employment.

In fact, Van Zyl thinks that the time is right for a change in the way businesses approach leadership. “The days of Hollywood-style leadership are over,” he says. “Hero leaders add little value, and charisma is short-lived. To be sustainable, leadership must be rooted in facts and delivery.”

Linked to this is the issue of compensation: exorbitant remuneration is no longer realistic, and the business environment would benefit if these structures were reviewed.

With this outlook, it is not surprising that Van Zyl takes an uncompromising stance when it comes to governance. The Board, he says, must function as the governing body for an organisation, representing all shareholders and giving guidance where necessary. On the other hand, CEOs shouldn’t wait for their instruction; rather, direction should be decided jointly. “Ideally, the Board should act as a repository for expertise and experience; directors should be an independent voice that’s not afraid to give criticism and has no interest in progressing through the organisation’s hierarchy.” Excellent governance starts with selecting the very best directors – but then again, in an organisation with a solid reputation, this will occur as a natural process.

Van Zyl may take a stern view on how business should be conducted, but that does not mean that he is unable to see the lighter side. Humour helps when dealing with tough situations, after all, and one has to maintain perspective, he insists, reiterating that some issues just are not worth worrying about. So, how does he get perspective? He looks at things from a different view – quite literally: “I love flying helicopters – and I’ve found it’s quite difficult to think about anything else when you’re in the sky!” he quips. Other great loves include reading (“I have a stack of books in my cupboard, so when I’ve finished one I just take the next one off the top”), sport, and as may be expected, “tinkering with cars, or working with my hands”.

He is the first to admit that he does not always get the work/life balance quite right, but his family helps. “They understand my responsibilities, and they also realise that business is cyclical – and they’re a constant reminder that life is too precious to be taken too seriously!”
Source:

Institute of Directors in South Africa
The Institute of Directors in South Africa (IoDSA) is a non-profit organisation that is unique in that it represents directors, professionals, business leaders and those charged with governance duties in their individual capacities in southern Africa. Visit our InfoCentre or website.

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