They said Honda had become trapped by Japan’s “monozukuri” (literally, “making things”) approach to manufacturing. This culture of incremental improvement and production line efficiency, called “kaizen”, served the company well in the decades after World War Two, they said, but today’s challenges – electrification, computerization, self-driving cars – demand a more nimble and flexible approach.
Most importantly, they said, over the past two decades company executives in Tokyo were given too much control over research and development. In their view, this led to shareholder value being prioritized over innovation. There was a reluctance to draw on talent from outside Japan. In its quest to deliver for shareholders, Honda sought to maximize volume and profit
http://www.reuters.com/investigates/special-report/honda-innovation/