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Learning From Toyota
Product recall is an extremely stressful and costly situation.Some lessons to be learned are outlined below. In addition, we offer practical suggestions for planning in order to ensure the continued security and integrity of your brand.
Let's start with some questions to think about as your consider this topic: Does your company have a structured plan for communication within top management so that all the facts are clearly communicated? Does that plan facilitate efficient lines for consistent information delivery?
In the recent Toyota example, it is believed that in the most crucial moments of their January 21 recall, communication between dealers and leaders was highly dysfunctional: "Sometimes
Toyota's
California-based sales arm seemed not to know what its
Kentucky-based manufacturing arm was doing or what its
Washington regulatory team had heard in the fast-evolving talks
with NHTSA. Sometimes it spun the other way" reporter John Crawley
describes. This poor communication occurred not only within the
corporation but with the media as well. What corporate representatives
told their dealers was different from what their spokesperson told the
media, which in turn was different from what actually happened.
This game of he-said-she-said is damaging to a company's public
reputation as well as within-company morale. Especially in a corporate
crisis like a recall, transparency as well as clear and constant communication
is absolutely vital. Anything less is dangerous to your image and
unprofessional.
Many companies may not be aware of the value of holding Management Crisis Briefings. These groups include employees of all levels so that information is clear, consistent and helps to mitigate the spread of rumors. Management Crisis Briefings are best supported by trained Critical Incident Responders as it is helpful in these meetings to acknowledge the psychological strain and stress on everyone which is generated by such a crisis.
Structured information and facts give people a a sense of security. The goal is to have a workforce that can continue to function and perform at optimal levels even in the face of a brand breach. The ideal option is to develop a response plan and strategy before a crisis happens, so that in the heat of the event your actions are direct, clear and effective.
In security and brand breach situations, not only is your product or reputation in jeopardy, but your employees, in reaction to the situation, can become compromised. Employees benefit from knowing that management cares about them and supports them in weathering the storm. Does your company have a system in place to ensure that messages reach all levels of employees? Are those messages streamlined and consistent to convey a high degree of honesty and transparency?
Below are some of the fallout symptoms from faulty communication that management needs to be aware of. In addition, management must know when to call in expert consultants to help restore employees to optimal performance levels:
loyalty may be compromised
increased absenteeism
anxiety at work
gossip
poor job performance
more mistakes
low worker morale
a sense of disconnection from the company
a disrupted personnel infrastructure.
To ensure the restored success of your company in the face of a brand or security crisis, here are some tips for recovery:
Make a plan
The best you can do is be prepared before a crisis strikes. Have lines of communication structurally secured and in place; keep it honest and transparent; recognize that your own people will be impacted and address them head-on.
Act Fast
At the first indication that a true issue is at hand it is in your company's best interests to accept responsibility, acknowledge the hitch, and rise to the challenge. Part of this approach is to be smartly prepared to that when the crisis hits you know how to proceed.
Rise to the Challenge
In a speech made on January 12, 2010, Toyota's COO Yoshimi Inaba said, "A product recall is an opportunity to reconnect with customers in ways we haven't before and to re-prove ourselves in their eyes." This attitude is exemplified perfectly in their 1989 Lexus recall and is one testament as to why Toyota customers have remained so loyal over the years. As Inaba wisely notes, a product recall is a unique opportunity.
But customers are not the only people impacted. Employees are equally vital to the continued success and excellence of a company. The best public relations firm cannot restore confidence unless employees are satisfied and producing at their highest levels.
Has your company ever faced a recall or a brand breach? What was the most stressful aspect of the experience? What advice can you give about product recalls based on personal experience or observation? Weigh in at info@traumaoutreach.com.
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