Wow! What a come down for the company who has always been highest rated for quality. I do not intend to make light of the problems that plague Toyota vehicles. They are real and they need to be fixed. I am a long time Toyota owner and I have owned a number of their vehicles over the years. In December, we purchased our latest Toyota to replace a very poor quality Audi. I was relieved to return to the high quality vehicles created by Toyota. I am a little less relieved now that my car has been recalled and the press is reporting that all Toyota owners have lost value. But I still love my Venza...
So how did this all go so wrong for Toyota, and what can we as business people learn from it?
Not one of us is perfect. When we make a mistake, we really are faced with only a couple of options: deny it, ignore it, acknowledge it or own it. In most cases, the business person who owns the problem will be able to get passed it.
This is where, I believe, Toyota messed up. They did not own the problem. They attempted to acknowledge it and hoped that would be enough to make it go away. The crisis-hungry press, however, was looking out for consumers as they continued to delve in to the problem. The situation pretty quickly evolved from a problem to a crisis.
Lesson One: Own your problem. Confess and work with all involved to come to a satisfactory outcome.
In addition, Toyota management behaved as if they were not accountable to anyone. I am sure they are 'king' in Japan, but here in the United States, they are just another large company that produces a product that consumers purchase. If you are being summoned by the United States Congress, don't slap back at the hand that feeds you. Put on your best suit, board a plane and go talk to Congress.
Lesson Two: No matter how powerful we are, or how good at your job, you are still accountable for your actions (and the actions of those who work for you...take note, Brokers)
Every day, it seems, I hear about more and more vehicles being recalled. I can't help but feel that any manufacturing company put under this microscopic scrutiny would find problems that need to addressed. When I was talking to my sister-in-law last week about the floor mat recall, we could both recall problems of that nature with non-Toyota vehicles.
Lesson Three: Perception is Reality to the public. Good word-of-mouth=good reputation. Bad-word-of-mouth = bad reputation. Pay attention to what is being said out there about you and your company, because it matters.
I hope that Toyota will be able to resurrect some of its good will and reputation. They really do build good cars and trucks. I think that what has happened to them should be a lesson to us all. I do not believe that Toyota set out to create problem vehicles. I believe they set out to become the biggest and most powerful car company in the world, and in their haste to the top, they stopped paying attention to the little details that used to set them apart.
The final lesson here for all business professionals: do not get so confident and so conceited that you don't think you have to 'sweat the small stuff.' The small stuff is probably what got you to the top and it is the same stuff that can bring you back to the bottom!
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Holly--very well written post with many lessons for all. Thanks.
When written Holly, I think its a good break for some of the struggling car makers.
Great post, Holly! We all make mistakes, and I think that it's what you do to resolve them that really makes the difference. It'll be interesting to see the President of Toyota testifying before a Congressional Committee.
You hit the nail on the head with this one Holly. There is not a thing I could add to this that you didn't already address.
Great job with this post my friend!
Hi Holly ~ I agree with all the other comments here. Excellent post. You made some very astute observations that we can learn from and use in our own daily business.
Holly, I agree with all your comments they are right on. My main reason for writing is a small defense of Toyota. My family owned a Mack Truck dealership for some 65 years and I managed it for the last 17 years we owned it. I can tell you from experience that all of the government mandated emission and safety standards have caused electronic nightmares in the automotive industry. I am not against these mandates, but to meet them requires a very complex vehicle. A lot of problems that occur with modern vehicles are very difficult to diagnose. Your car can have an intermittent problem that when brought to the dealership can not be found if it can not be reproduced. The problems for Toyota are far more complex than can be described in a 3 or 4 minute sound bite on TV.
It is really interesting to see how this whole thing will evolve.Thanks for all your comments.
Tom, I really appreciate your personal insight. I think this floor mat business is a bunch of 'hooey.' Yes, the mats can get behind the gas pedal, but a fix has been in place for a long time (hooks to hold them in place). If someone places aftermarket mats in their car, and does not follow directions to remove the original mats, I am not sure how it can be Toyota's fault. I suspect you are right; it probably is really a very complex electrical issue. Hopefully, not one I will have a chance to fully understand!