The opening paragraph in the Wall Street Journal captures the essence of Toyota’s problems, but more importantly Toyota’s silent problems. The article A Crisis Made in Japan by Jeff Kingston, director of Asian Studies at Temple University states,
In Japan there is a proverb, “If it stinks, put a lid on it.” Alas, this seems to have been Toyota’s approach to its burgeoning safety crisis, initially denying, minimizing and mitigating the problems involving brakes that don’t brake and accelerators that have a mind of their own. President Akio Toyoda, grandson of the founder, was MIA for two weeks and the company has appeared less than forthcoming about critical safety issues, risking the trust of its customers world-wide.
The article further states: It is not surprising that Toyota’s response has been dilatory and inept, because crisis management in Japan is grossly undeveloped. Over the past two decades, I cannot think of one instance where a Japanese company has done a good job managing a crisis. The pattern is all too familiar, typically involving slow initial response, minimizing the problem, foot dragging on the product recall, poor communication with the public about the problem and too little compassion and concern for consumers adversely affected by the product. Whether it’s exploding televisions, fire-prone appliances, tainted milk or false labeling, in case after case companies have shortchanged their customers by shirking responsibility until the accumulated evidence forces belated disclosure and recognition of culpability.
Japanese firms often seek to cover up or fudge the facts and the people communicating with the media and public often do not have the information they need to do their job. The absence of a structure to quickly get accurate information to top management hampers an accurate and adequate response. That leaves management unprepared to deal with media questioning and conveys an image of stonewalling and indifference.
This article by Jeff Kingston is a must-read if you want to get your arms around how Toyota’s crisis started, how it grew, and eventually how it exploded. It also points to why Toyota’s problem might be far from over and why its aftermath may continue to linger into the future. In my book, Without Warning, I write, There is little doubt that participating in and winning in a world that is connected, mobile and increasingly transparent can be challenging, creating a multitude of problems for political and business leaders alike, and their organizations. The problems one is expected to solve arrive with risks attached. The potential for faulure is real. At times, the opportunity for a happily ever after ending appears remote at best. Yet this is the sandbox where most political and business leaders play, and at times are asked to leave. It’s also this same sandbox where many followers find themselves, contemplating whether to follow their leaders in the games they play or to pursue a different path, one they believe they can truly make a difference.
Toyota’s problems are real, and everyone must ask, “Are there more surprises in the grass?” Time will tell.
Tags: Akio Toyoda, Jeff Kingston, Silent Problems, Toyota, Toyota's crisis, Toyota's problems, Without Warning
