Over the next 2 years, what do you believe you and your organization will be remembered for? Will you be remembered for the great customer service you deliver on a day-to-day basis? Maybe, but doubtful. Will you be remembered for a new product you delivered into the marketplace with great fanfare? Possibly. Will you be remembered for the 50 years you’ve been in business, despite enormous odds? Unlikely. Or, will you be remembered for how you handled a disaster? The odds are, it will be the latter.
I’ve told clients many times, “Your leadership/organization will be recognized more by how it handles disaster, than by how it managed success.” Does this resonate with you? It should, because every once in a while we encounter one of those defining “disaster” moments. Or what some might refer to as “A Moment of Truth” situation.
Several years ago I was working with a client with a Moment of Truth situation. They had experienced an unexpectant product failure. At first glance, they were looking for straws. What went wrong? When did it start to occur? How many clients does it potentially impact? And the most important question of all, “What should we do?” They took enormous steps to identify the problem, and more importantly, implement a sound solution. They didn’t take the easy way out, or the low cost way out. They took the path that was best for their clients, because this aligned with their corporate values. The fix was costly and the outcome was interesting. Their client loyalty did not suffer, it actually improved!!!
There are numerous high profile scenarios with similar outcomes. The most obvious being, the Tylenol scare back in the 80s. And being from Minnesota, the collapse and the rebuilding of the I35W bridge. These are stories where adversity was embraced and sound solutions to difficult problems implemented.
Unfortunately, too often companies and their leaders follow a “path of least resistance or cost” protocol. It in many respects is tactical, not strategic. It’s about how companies can still achieve their objectives and not get sidetracked along the way.
Such is the case of Toyota. They embraced and fostered silent problems (problems that were being avoided, neglected, going unnoticed or being intentionally silenced), and are now suffering the outcomes. Toyota’s President, Akio Toyoda has proclaimed repeatedly that the fix they are proceeding with has been tested and has assured customers, “this will fix any problems that could be associated with unintended acceleration.” Today, Toyota’s that have received the fix are still experiencing unintended acceleration.
Today I’m wondering, will Akio Toyoda be known for how he mishandled a disaster, and the crumbles that are yet to come.
