This is the first in a continuing series of articles analyzing the Toyota Motor Company‘s disaster, brought to light by the recent recalls of just about every model made, and most recently the Toyota Prius, due to the failure of the breaking systems and a problem with the car suddenly accelerating.
I was having lunch with some friends, a couple of whom drive Toyota Prius‘, and the topic came to the recent troubles that the media has been reporting. My colleagues looked at me and said, “What would you do, from a customer service and customer loyalty standpoint?” My immediate response was, “I’m still in shock that such a thing could happen!” What was supposed to be an hour-long get-together turned into an all afternoon discussion.
I couldn’t believe that such a large company, with a mostly untarnished world-wide brand recognition and loyalty, could not have a specific plan, formulated over years of experience, on how to deal with such a potential disaster. They could have taken a lesson from history and averted the current crisis, and possibly saved some lives, too.
My purpose in writing these series of articles is not to “kick someone when they’re down” but rather to pick apart the tragedy and, hopefully, allow some of our loyal readers and clients to avert such a catastrophic disaster for their organization.
Yes, I said catastrophic disaster. I’m not sure that Toyota will recover fully, if ever, from the events brought to light over the past few months. The public does have a relatively short memory. However, when families are killed, they have a tendency to remember a little longer. Coupled with the apparent decision to not do anything about the problems for eight years or more and the world-wide economic crisis, I’m not 100% sure Toyota will survive.
Should people be fired? Damn straight. Should those who knew about the problems and covered them up be help criminally and civilly liable. You bet. I recall reading stories of the fabled Japanese executive who would commit Hari-Kari over some small misdeed. If the leadership in Japan knew about the problem, it would be raining top executives in Tokoyo.
Unfortunately, this situation is playing out to look a lot like the recent Tiger Woods public relations disaster. When will people learn that you just can’t lie or “no comment” your way out of a bad situation. Sorry, but lying always comes back to bite you in the ass. Sooner or later, you will be found out.
I recall the Tylenol tampering case in 1982. The folks at Johnson & Johnson, who make Tylenol, immediately recalled every single bottle in America, almost overnight. Their swift response cost them profitability for the quarter. However, consumer trust was saved in the brand and within a year, they were back on top. They didn’t lie, disavow any knowledge, or cover it up. They acted quickly and decisively to fix a problem that they weren’t really responsible for. They proved, with their wallet, that they really put their customers first and foremost.
How would things be different if Toyota had reacted this way?
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