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Archive for October, 2009

We’re Not Running Out of Whistles - Part 2

Sunday, October 4th, 2009

As a child, I was afraid of the boogeyman, a make believe character often used to make children behave. Well I’m wondering, are you afraid of the whistleblower? If you’re a business leader and you aren’t, you should be. After all, the whistleblower is growing in stature and potentially more dangerous to our businesses as we speak. A decade ago, the whistleblower was a lonely spot indeed, however that is not the case today. In Part 1, I noted,

  1. I’m convinced that whistleblower protections and rights will continue to gain in stature and strength under this administration. 
  2. I believe the whistleblower will become a primary tool for law enforcement in the future. In effect, the whistleblower becomes the low cost alternative to the investigative task force. 
  3.  The whistleblowers role of exposing silent problems in organizations will grow in importance in the future.

If I’m correct, business leaders must put in place systems that prevent whistleblower lawsuits from occurring in the first place. In essence,businesses must put in place systems that address silent problems  early in their evolution, because whistleblower lawsuits eminate from silent problems. Yes, the problems that are being avoided, neglected, are going unnoticed or are being intentionally silenced are the source of all whistleblower lawsuits! Therefore, companies must put in place systems that identify silent problems. Here are a few ideas to go down that road.

  1. Educate your employees about silent problems, and how they impact business performance, culture, communication… 
  2. Create a feedback system where employees, customers and vendors can report the occurrence of silent problems.
  3. Create a silent problem task force that is responsible for identifying, following up on and solving silent problems before they become toxic.
  4. Work with an independent 3rd party vendor where silent problems can be submitted and dealt with anonymously.
  5. Create a culture where silent problems become “Job 1.”

The role and relevance of silent problems in organizations is growing in importance every day. On occassion, they may be a mere distraction. Most of the time, they have a direct and negative impact on business performance. And every once in a while, they can throw a mighty blow, which could become a fatal Without Warning event. At the very least, silent problems are dangerous and cannot be overlooked.

Is The Toyota Way Waning - Part 2

Friday, October 2nd, 2009

The automotive industry has been in a funk for over a year now with declining sales, plant closings, massive layoffs and weak profitability. When I started this blog 9-months ago, more than once I’ve written about and chastised Toyota. This entry is little different, it simply confirms the multitude of challenges facing Toyota, because I’m convinced Toyota is coming unglued. For instance back in May I wrote:

Toyota appears to have lost its momentum. And as the economy turns around and car sales begin to rebound, I predict that Toyota will be a lagard. Fresh companies like Ford, Hyundai and others will be on the attack, going after #1. And if Toyota falls as I anticipate, reports about Toyota will also turn for the worse. Stories will reveal about how key decisions weren’t made. How faulty assumptions were made. How political infighting is underway. These are the basic foundations of Silent Problems and Without Warning Events.

Well, my remarks were right on. Toyota has lost its momentum and is quickly losing its leadership position in the marketplace. For instance today, Akio Toyoda, President of Toyota, delivered more bad news, as reported by The New York Times. Here are a few of the highlights:

  • Toyota was shamefully unprepared for the global economic crisis and now is a step away from “capitulation to irrelevance or death,” said Mr. Toyoda, the grandson of the carmaker’s founder. The company, he added, is “grasping for salvation.”
  • A recent fatal car accident in the United States, possibly linked to oversize floor mats in one of Toyota’s Lexus luxury models, was “extremely regrettable,” he said, and had undermined the company’s reputation for safety.
  • Toyota expects a record loss of ¥450 billion, or $5 billion, for the year that will end in March, as car sales stay sluggish.
  • “They say that young people are moving away from cars,” he said. “But surely it is us — the automakers — who have abandoned our passion for cars.”

Now let me see. Mr Toyoda informed the public that they were shamefully unprepared for the downturn. Their reputation for safety has been undermined. They are bleeding red ink, with no signs of a turn around. And, automakers have abandoned their passion for cars. From this seat, it looks like Toyota is following GMs lead to being irrelevant. So with that in mind, I have a word of advice to Mr.Toyoda.

Mr. Toyoda, your years of glory are quickly coming to an end. As a business, you have much to proud of, after all, you were “the leader” of the pack. But that was yesterday. The challenges in front of you are greater than ever with new competitors entering the marketplace, and more on the horizon. But the world marketplace is not your biggest challenge. Your biggest challenge is Toyota and what it has become, with enemy #1 being the silent problems now dominant inside Toyota. Yes, you heard me correctly, silent problems are your #1 challenge. Their presence has been slowing you down for years, and is robbing your business and your organization. I strongly encourage you to start dealing with your silent problems today, and just maybe, you have a chance to regain the stature you earned over the past decade.

Call me, I’m waiting.

Regards,

Rodney Johnson

 

 

 

Beware Toyota, you’re being hunted while you’re looking in the rearview mirror. And news of the silent problems yuo’ve been avoiding will quickly surface.

Be the one to see it coming!

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