• The New Yorker, Tuesday, May 6, 2008 10:02 AM

There's an enigma to the storied Toyota Production System, which aims to get as much as possible out of every part, every machine, and every worker: Although the system has been widely copied, Toyota has kept its edge over its competitors. How has Toyota stayed ahead of the pack?

The answer has a lot to do with another distinctive element of Toyota's approach: defining innovation as an incremental process, in which the goal is not to make huge, sudden leaps but, rather, to make things better on a daily basis. The principle is often known by its Japanese name, kaizen-continuous improvement.

Toyota's innovative methods may seem mundane, but its sheer relentlessness defeats many companies. Instead of trying to throw long touchdown passes, Toyota moves down the field by means of short and steady gains. It rejects the idea that innovation is the province of an elect few; instead, it's taken to be an everyday task for which everyone is responsible.

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