A public relations nightmare
02/06/10 11:40 AM Filed in: Truth
& Transparency
It
is not surprising that Toyota's response has been
dilatory and inept, because crisis management in
Japan is grossly undeveloped. Japanese firms
often seek to cover up or fudge the facts and the
people communicating with the media and public
often do not have the information they need to do
their job.
The absence of a structure to quickly get
accurate information to top management hampers an
accurate and adequate response. That leaves
management unprepared to deal with media
questioning and conveys an image of stonewalling
and indifference.
There is also a culture of deference inside corporations that makes it hard for those lower in the hierarchy to question their superiors or inform them about problems. The focus on consensus and group is an asset in building teamwork, but also can make it hard to challenge what has been decided or designed. Such cultural inclinations are not unknown elsewhere around the world, but they are exceptionally powerful within Japanese corporate culture and constitute significant impediments to averting and responding to a crisis.
This crisis
offers an opportunity to reform Toyota's
corporate culture and improve quality assurance.
This can be done by becoming more focused on the
customer, using two-way flow of information and
feedback; improving corporate governance by
appointing independent outside directors; and
making risk management more than an afterthought.
It is not too late to turn the situation around,
but this means shedding the constraints of a
fusty corporate culture and wowing customers with
a recall and above-and-beyond after-sales service
and care.*
*Author's Note=Above article from Wall Street Journal on Toyota's PR Nightmare
1. It's not the company, or business executives, that determine the extent of problems; it's the customers. It they perceive a problem to be bad, even though it's not, word can spread quickly with sensational media stories and social media.
2. Transparency: Learn about it and embrace it. It's no longer an option it's a necessity in the age of empowered consumers.
3. If you don't know what's causing the problem acknowledge that you don't know but take the issue very seriously.
4. Matrix organizations where there tends to be little accountability can prevent people from speaking out and reacting to issues in a prompt manner. It's time to empower employees to make decisions without having to have months worth of meetings and several Power Point decks.
5. Focus on the customer. Act like they are sitting in on your meetings and they are with you when you make critical decisions.
There is also a culture of deference inside corporations that makes it hard for those lower in the hierarchy to question their superiors or inform them about problems. The focus on consensus and group is an asset in building teamwork, but also can make it hard to challenge what has been decided or designed. Such cultural inclinations are not unknown elsewhere around the world, but they are exceptionally powerful within Japanese corporate culture and constitute significant impediments to averting and responding to a crisis.
*Author's Note=Above article from Wall Street Journal on Toyota's PR Nightmare
The Lesson for All of Us ?
1. It's not the company, or business executives, that determine the extent of problems; it's the customers. It they perceive a problem to be bad, even though it's not, word can spread quickly with sensational media stories and social media.
2. Transparency: Learn about it and embrace it. It's no longer an option it's a necessity in the age of empowered consumers.
3. If you don't know what's causing the problem acknowledge that you don't know but take the issue very seriously.
4. Matrix organizations where there tends to be little accountability can prevent people from speaking out and reacting to issues in a prompt manner. It's time to empower employees to make decisions without having to have months worth of meetings and several Power Point decks.
5. Focus on the customer. Act like they are sitting in on your meetings and they are with you when you make critical decisions.
