What Is the A3 Business Model?

by Tiffany C. Wright Google

A3 is less of a business model or strategy and more of a process. Companies use the A3 process to engage in group-based problem solving to quickly get at the root of a problem. Companies also use the process to promptly determine a plan of action to achieve one or more specific goals. One of A3's primary benefits is its ease of use.


The A3 planning process refers to succinctly putting the key facts and major points of a plan on one sheet of A3 paper -- a paper size common in Japan and Europe that is slightly longer but less wide than 11-by-17 inch paper. With the A3 process or approach -- which typically allows no typing, only writing or drawing -- the team records the problem, the source or root cause of a problem, a positive goal, a plan of action and any confirmation follow-up. Toyota Motor Company originally developed the A3 planning process for internal use.

How It Works

The primary purpose of the A3 process is to help groups work together on in-depth problem solving to achieve a common goal of improving operations or efficiencies or communication. Companies may use the A3 process in a particular group or for a specific function. For example, some companies put together cross-functional teams to gain input from different perspectives on the same problem. With the A3 process, the goal is to leave the meeting with a plan of action, which makes finger-pointing counterproductive. Team members who use the A3 process focus on distilling all the inputs and insights into a one-pager they can all use.

A3 in Action

Say a company has defective inventory. Someone in purchasing sees the problem as a vendor problem, while someone in shipping sees it as a potential shipping problem. In addition, an employee in customer service sees the issue as a customer mishandling concern. These employees convene a meeting. During the meeting they represent their departments’ perspectives and use the A3 process to get to the true root cause. The project manager encourages everyone to share his concerns and observations and brainstorm for causes. Once they identify the cause, participants repeat the process to identify solutions and goals.

A3 as Strategy

Companies can use the A3 process in nearly any situation. The A3 process’s use within Toyota soon spread because of the operational improvements that occurred when employees used the process properly. Many companies make the A3 process part of their strategy by using it to identify and solve problems within groups, across groups and across departments in all areas of the company. When a company makes the A3 process an integral part of its problem solving and goal setting, the A3 process becomes a strategy for achieving the firm’s goals.

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