Where in the World is Akio Toyoda?
One headline that a company in crisis could certainly live without is “Inside Toyota, Executives Trade Blame Over Debacle“ — this morning’s headline in the Wall Street Journal. This comes on the heels of a controversy surrounding the Lexus GX460 — suspension of the sale of the vehicle following Consumer Reports issuing a rare “Do Not Buy” warning.
While the news doesn’t get better for Toyota, their handling of the Lexus crisis did. Toyota took action, suspending the sale of the vehicle, offering Lexus loaners to concerned owners, and addressing the issue publicly – immediately.
This was a much better crisis response than Toyota has done in the past few months, however there are still things that Toyota, or more specifically, Mr. Toyoda, needs to do immediately – especially in the wake of this morning’s WSJ headline.
I have written extensively in the past about what I believe Mr. Toyoda needed to do in order to improve public perception of the company his family founded and he runs.
Nothing has changed. The New York Times reported a few days ago that Mr. Toyoda told investors that “negative reporting” was behind the crisis, and then yesterday when the Lexus crisis broke, it was not Mr. Toyoda who addressed it, instead leaving that to the U.S. Lexus General Manager (via email).
Add the internal discord now playing out in the news, and Mr. Toyoda now is battling on a number of fronts – internally and externally. Again, here is what Mr. Toyoda must do right now:
1. Develop your Message – There are the underpinnings of an effective message in today’s WSJ article
2. Speak Publicly – Immediately — You are simply taking too much incoming fire at this point; a member of the Toyoda family must speak, now, today, and every day going forward until this crisis is settled
3. Appear Publicly – Multiple times, each and every day
4. Show up where your customers are – Multiple times, each and every day
This list is very basic and slightly different than two months ago, as some of the damage is now irreversible and the chances of effectiveness have diminished due to time passing.
One prediction – if these steps, or similar steps, are not taken, the damage and negative stories will not only continue but increase.
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