Toyota's Fall From Grace

The breadth and impact of the Toyota recall is breathtaking.

It’s been a slow simmering pot that has finally erupted onto the world stage, leaving many stunned and gasping for breathing. In some ways it is reminiscent of the Tylenol scares of the past. However, this one is different. It didn’t burst suddenly into existence but has been slowly percolating inside the company and now has the feel of a cover up.

I won’t say it’s a cover-up because I don’t believe that it is. Some will even jump to proclaim that the company is in trouble and that excessive damage to their brand has occurred. I don’t share these opinions. Let me explain.

I have been to Japan and worked with Japanese executives for a number of years. My experiences with them have been uplifting and refining. My skills as an executive are better today because of my interactions with them. However, I also recognise the culture is uniquely Japanese and the willingness to brashly admit error and “fall on the sword”, as is often expected to be done in America is a difficult place to get to for the Japanese. This is not a flaw in their culture but rather a uniqueness that is different from other cultures. It is one of their strengths that feed into their sense of national pride.

In observing the Toyota manufacturing problem it’s important to remember something about the Japanese: this is a people that take great pride in the ability to write on a grain of rice. Think about it. The level of control, patience, attention to detail and focused effort is remarkable in doing this thing.

Now apply this cultural characteristic and inherent expectation to Toyota cars. The same cultural expectation for control, patience, attention to detail and focused effort is deeply embedded in the manufacturing of Toyota cars. To deliver anything less is a failure. A national failure.

This is not a simple manufacturing problem for a middle of the road company. This is Toyota. It carries the name of Mr Toyoda. This is a national treasure - the treasure of a people that inherently, almost subconsciously, expect – perfection. The decision to make such a bold admission of failure, on a world stage, is a monumental effort and tarnishes the view of an entire nation. Is it any wonder that it has taken a year to come forward?

So, now that the decision to admit error has been made, true to the cultural expectations, exceptional focus has been turned to fixing the problem. Manufacturing has been halted. Supply chains and partner relationships have been disrupted. Big, bold advertising is now in place to “win back the confidence of our customers.”

Make no mistake Toyota will be stronger and better when this is done. The manufacturing will be tighter. The supply relationships will be enhanced… and the marketers? Well they, almost have a blank check to do whatever it takes to remove whatever tarnish has landed on the brand and polish up Toyota as a brand we can all trust - a brand that stands for reliability, stability and safety.

Email the writer: i.gilyeat@alrroya.com