I think Toyota’s crisis is not only a result of the sticky pedals but also the cultural and language differences as well as tangled lines of communication across the global offices that hindered it from acting within the ‘golden hour’ (first 48 hours) to contain the crisis. The simple rule of crisis management is to say it all and say it fast just like ripping off a band-aid at once. Toyota however is communicating this week what it should have said last week after being cornered by a journalist. A little too late when the stocks are down and clients are anxious.
http://www.postchronicle.com/news/business/article_212282958.shtml
The wording used by the Chief of Toyota in his hastily organized press conference is an indication of Toyota’s failure to know its audience and the appropriate words to use when talking to them. ‘I am sorry for your concern’ isn’t a good line to use when 19 people in counting have died from your sticky pedals.
Toyota in a desperate attempt to explain what it is doing has applied tactics that are not effective in restoring Toyota’s reputation and making people feel safe driving Toyotas.
http://www.youtube.com/watch?v=BUGHibAWciM&feature=player_embedded
Even though Toyota started on the wrong foot I think they are now getting onto the right path and doing the right thing in the face of this crisis. Apologizing and explaining what clients should to next and where they should go for more information is a good start. http://www.examiner.com/x-1995-Green-Car-Examiner~y2010m2d1-VIDEO-Toyota-president-explains-how-gas-pedal-problem-is-being-fixed
Toyota is continually updating its clients on what they are doing to fix the sticky pedals. http://www.toyota.com/recall/?srchid=K610_p278711360
In an interesting but risky approach to managing the crisis, President of Toyota USA, Jim Lentz is answering the Digg community’s top questions. The public was asked to vote for the most pressing questions he should answer regarding Toyota’s recall as well as its future plans. http://digg.com/dialogg/jim_lentz_1?OTC-em-fu11f
This approach is in line with the 95 thesis that calls for one to ‘get off the camel’ and go where the markets are and engage in conversation. This is a good strategy because Toyota is shifting from just communicating its message (what to do, where to go regarding the recall or showing a video of someone fixing the breaks which is not convincing) to listening and answering their clients thus helping them shape their message more and reducing on their clients anxiety.
The biggest indication of Toyotas efforts to minimize its cultural and language differences lies in the President of Toyota’s Op-ed. http://www.washingtonpost.com/wp-dyn/content/article/2010/02/08/AR2010020803078.html Toyoda’s Op-ed follows Lukaszewski’s eight steps to earning public forgiveness. http://www.e911.com/How_Can_%20the_Lukaszewski_Group_%20Help_%20You/We_need_%20first_%20response_%20help_%20now/seeking%20forgiveness.htm He acknowledges the problem, explains what happened, what they have learned from the crisis and specific steps put in place to prevent this from happening again. These are the steps I would have taken at the beginning of the crisis in the ‘golden hour.’
I don’t feel safe driving a Toyota today because of the steering wheel problem that has just been reported however I commend Toyota for its efforts in doing the right thing to earn public forgiveness. It won’t happen overnight but they are on the right path.
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