Toyota’s failure to communicate fuels firestorm

I own two Toyotas. They are older models, so not among those in the recent recall. They have been very reliable, easy to maintain and provide a good ride. I like them enough that I had thought I would stay with the brand when it came time to upgrade. Now I”™m not so sure.

Toyota”™s slow response to the crisis accompanied by the long silence of its leaders has shaken my trust in the brand. It didn”™t have to be this way.

The firestorm surrounding Toyota”™s quality problems can be attributed in large part to communication failures.

To deal effectively with a crisis, it is vital for a company to seize control of the narrative by confronting the bad news immediately and candidly.

Furthermore ”“ and this is key ”“ whether or not bad news takes on a life of its own depends on how closely related it is to the core rationale of that company. If such news contradicts the company”™s core brand message, it has the potential to spiral out of control.

Toyota did not seize control of the narrative perhaps because it did not recognize the damage being done to the brand”™s core values of quality and safety. A vacuum ensued, which enabled others to fill in the blanks with their own narratives that implied malign intent including Toyota”™s arrogance, evasion of responsibility, cowardice and betrayal of its loyal customers”™ trust. It also invited closer examination of the company and its products, which is the last thing a business needs in a crisis.

It goes deeper. The lack of information flowing from Toyota deprived its customers of some important freedoms, for example, the freedom to choose whether or not to drive a car that can become deadly without warning. This, of course, extended to customers”™ families. As they awaited facts or at least a sign the company was seriously addressing the problem and providing solutions, feelings of helplessness became pent up, followed by humiliation and anger as the void continued. When suddenly, shockingly, Toyota announced the recall of millions of vehicles, now including the 2010 Prius, it was clear Toyota no longer provided the quality and safety it had always promised. It broke its main bond with customers. Now it was personal.

What many companies, including Toyota, fail to recognize is that in today”™s 24-hour news cycle, information travels, literally, at the speed of light. What”™s more, the Internet allows anyone to say anything and be heard. The scrutiny is relentless. As a result, failing to communicate about a crisis almost always backfires.

 

Had CEO Akio Toyoda and President, U.S.A, James Lentz shown leadership by speaking to the public and communicating with their customers as soon as they became aware of the problems, they still would have had a big problem on their hands, but could have avoided the ferocious reaction that silence and avoidance always generate.

 

I use the word “speaking” literally. We have become a society much more accustomed to communicating by written means than by oral means. In a crisis situation ”“ or any environment where it is critical to tell your story ”“ speaking is most effective. It is much richer in meaning than writing can ever be. Speaking is inherently emotional, which facilitates connection. Speaking is “show,” while writing is “tell.” For Toyota, it”™s the “show” that”™s been missing.

It is not too late for Toyota to recover much of what it has lost. The public understands quality problems can occur, particularly when companies experience the kind of tremendous growth Toyota has. They also understand that, occasionally, things will go wrong. Tragically, people may even die. Yet, customers will give the benefit of the doubt and be in a much more forgiving mood if they feel they are being dealt with honestly and fairly.

Toyota, just like every other business, large or small, must assert its leadership not only by producing excellent products, but also by showing customers, via forthright, open and honest communication, that it cares about them. The costs of doing otherwise, as Toyota has no doubt discovered, are much too high.

Ruth Sherman is president of Ruth Sherman Associates L.L.C., a communications consulting and coaching company in Greenwich. Reach her at ruth@ruthsherman.com.