Photo: Kenjonbro from Flickr

I wouldn’t fancy working in Toyota’s communications department at the moment.  The company has sailed into a perfect “faulty component” storm that has led to the recall of millions cars and trucks and a suspension in sales of many of its most popular models. The estimated bill is expected to top a cool 2 billion dollars.

The global reach of Toyota and the possibility that road users may have been at risk has now given it a political dimension. So too has the possibility that the recall may in the end cost thousands of jobs worldwide if the company is forced to cut costs to cover the recalls and lost sales.

However, the way that Toyota has handled the unfolding corporate car crash since it began last November has now become the story. I suspect in future years MBA students will study this episode to learn positive and negative aspects of corporate crisis management.

The way that Toyota has handled the unfolding corporate car crash has become the story

One of the first statements issued by the company was given by an executive wearing a white mask – not unknown in Japan but hardly likely to send the right message to the rest of the world. Since then coverage of the crisis has been largely driven by the media and Toyota’s customers.

The impression that the company simply does not care about what the public think of it has grown as fast as its reputation for reliability has waned.

I think a few lessons could be learned for those who work in the communications field – be it politics, selling cars or other consumer goods.  Appropriately, it also falls into a neat anagram…

T: Truth – own up to some mistakes and don’t try to hide things.

O: Ownership – take control of the situation.

Y: Your job could depend on it – sure fire motivation!

O: Oprah – You need an Oprah Winfrey moment where someone from the company or party admits “it was my fault, I apologise”.

T: Take responsibilty for sorting out the problems.

A: Agenda – makes sure it is you that tries to set media agenda.

Last Friday, Akio Toyota, the grandson of the company’s founder, literally bowed to public pressure and issued a public apology. His lack of visibility in the storm prompted last weekend’s Financial Times to quip that “the ship’s captain appears to have retreated below decks”.

In the US Toyota is now running a TV ad grievously apologising for its errors.  Whether this and Mr Toyota’s belated appearance will plug the PR hole beneath the water line remains to be seen.