What Toyota Can Teach Us
I am a fan of Toyota. I own one currently and have owned another one in the past. They make great cars.
So it hurts me to see how they are responding to what is emerging as the greatest crisis Toyota has faced. I want them to do better. I want them to sell more cars. But right now, I’m not sure they’re helping themselves.
Most of us non-caver dwellers have by now heard that Toyota has halted sales on eight models (representing over 50% of its sales) and recalled millions of vehicles because of gas pedals that stick. As this piece points out, Toyota’s not saying much. They haven’t apologized – really. And while every defective vehicle will likely be fully repaired, somehow their handling of the situation has been less than optimal.
Here’s what great companies and leaders do when facing crisis:
- The top leader are involved. Sending the VP of marketing (or associate pastor) out to do your dirty work is a failure of leadership.
- Great leaders name the problem honestly. Any “probably most of you won’t die from this so it’s not that serious” talk from the CEO is not helpful. Tell people it’s a serious situation and tell them you are aware of the consequences.
- Top leaders take full responsibility. This is not the time to point fingers, assign blame or play they “it really isn’t my fault” card. People who take responsibility inspire confidence in followers.
- Great leaders fix the problem. Honestly admitting you have a problem is different than doing everything in your power to make it right. Even if you are not sure how to fix it, publicly announcing that you will do everything you can do to find a solution is helpful.
I know that as a leader, it’s hard to do these things. There’s something inside all of us that wants to turtle when crisis hits. We’d love to cover up, underplay it and hope it would go away. But that undermines confidence among your followers. Doing the hard thing and owning it, assuming full responsibility and fixing the issue inspires confidence. This has been one of my key learnings over the last number of years. The more I do this, the better I (and the rest of our team) lead.
But I’m learning over time that the very best response I can have to bad news is to get on top of it and accept full responsibility.
What do you think? What are some practices you’ve seen in crisis that either inspire or diminish confidence?