Toyota report links crisis to corporate culture

A report on Toyota Motor Corp.’s sudden-acceleration crisis has been released and is a good read for PR professionals.  The report by Toyota’s seven-member North America Quality Advisory Panel includes significant discussion on how the corporate culture and organizational structure played a part in Toyota’s slow response to recognize the growing problem and resolve it.

While there will be a number of learnings (as there most always are in such crises) for Toyota and other large manufacturing companies, a couple of things stand out in the report in terms of strategic communications as a means to avoid or address such issues.

Customers as stakeholders... and remember Risk Communications

It appears that customer complaints were not taken seriously; blaming floor mats comes off as a roundabout way of saying that customers are stupid.    Toyota took a technical approach to an issue that eventually included a number of serious accidents and tragically, a number of deaths.  While I don’t know Toyota’s actions in following up with customers, businesses need to get close to their customers, engage and partner with them, in order to manage such issues. 

A “not our fault” approach never makes the problem go away.  And we know from risk communication models that relying on stats and other technical arguments can further enrage and alienate when stakeholders feel they are not being heard.

Follow your principles to avoid and respond to crises

The report states Toyota’s quality principles were not followed when issues were raised by external stakeholders and suggests application of company stated principles could have improved speed and quality of decision-making. 

Unusual situations brought before management teams may end up with strong and differing opinions on what to do next.  This is where a company’s culture and principles can be the salvation.  What do we stand for?  What do our principles tell us we should be doing?   Sometimes this means taking a tough decision or unpleasant action that management would rather avoid, but its principles shine the light on proper action.  

Not only can applying principles in issues and crisis management lead to doing the right thing, when company principles are truly embraced and applied, customers, and just as importantly, employees are more likely to trust and respect management’s response.