Crisis Communication Lessons from

Toyotas Recall Disaster

By Vistage member Paul Heagen (Source: www.vistage.com)
Toyotas brand position of quality has been toppled by what has now
turned into a maelstrom of political intervention, consumer angst and
recalls involving millions of vehicles worldwide. However substantive
the issues over their quality control, it was an early series of
communications missteps that poured fuel on the fre and magnifed
their problems into the mega-crisis it has become.
The sad fact is that Toyota mismanaged the communications about
their recalls in every way possible. They failed to get correct
information to their dealers, punting anxious customers bac-and-forth
between headquarters and the dealers. They were not visible during
those frst few days when customer fears were escalating. They
dismissed early complaints and allowed the news media to confuse
sticing gas pedals with !sudden acceleration syndrome." #bviously
there were real quality defects at play, but Toyota simply failed to
respond in clear, open, honest and timely terms.
How you communicate in a crisis is the most in$uential factor in how
the public and policy-maers %udge you during and after the crisis.
What not to do during a crisis
Three responses are nearly always disastrous in a crisis& delay'the
company waits too long, usually dithering over facts that are
secondary( denial'the company cannot accept )usually frst to
themselves* that anything could possibly have gone wrong( and
defensiveness'the company quicly blames others or hastily sees to
absolve themselves )for example, Toyota initially blamed
!environmental factors" on the sticing pedals*.
+eyond the obvious need to protect public safety )if that is at stae*,
your goal during the early hours of crisis communications should be to
establish and protect your credibility. ,f you expect to manage the
crisis, tamp down the turmoil, control the outcome and recover with
your brand intact, credibility is absolutely crucial.
8 tips for communicating during a crisis
-hile a crisis plan and response will di.er based on the nature of your
industry and what went wrong, these are some basic operational and
communications principles to follow when responding to a crisis&
/. Plan for a crisis. Too many businesses thin more about how
things are supposed to wor, not what could possibly go wrong.
0cenario planning and conducting crisis simulations allows you to
also practice communications along with your operational plan
and conditions you to the emotional experience of a crisis.
1. Work with a professional. 2 crisis can be very emotional and
threatening, especially for a privately held business, where
personal name and future is at stae. 2n outside professional can
bring important perspectives, direct the energy of management
towards the best solution and help eep emotions from taing
over. 3se somebody you trust'ideally the same person who
helped you in the planning phase'but be sure to get someone
who is willing to be honest and tough.
4. Create a contact plan. 5reate a plan that tells employees who
to contact on the management team in the event of a crisis.
-hile some of the early actions in a crisis can be prescribed,
there is nothing lie having senior management in touch and fully
engaged to mae decisions in real time based upon rapidly
changing circumstances.
6. Act on what you know and disclose what you know. +egin
the tas of tracing down information as soon as possible, but to
avoid rumors and speculation, release facts as you now them.
They will come out anyway, so better that you establish your
credibility by being forthcoming.
7. Show sympathy and empathy. 2 crisis that involves public
safety stirs up a stew of human emotions'fear, dread, betrayal,
anger ' that can play out in what may appear to be irrational
reactions. 8ont waste your energy complaining about how
irrational some people )or the media* are( doing so maes you
loo unsympathetic. 9actor those emotional, human responses
into your planning and wor with them, rather than against them.
:mpathy earns trust, and trust opens the door for facts to be
reasonably considered.
;. Update your website, blog and social media uickly and
freuently. ,nterest groups have the ability to quicly coalesce
and mobili<e through social media. +y being part of those
networs ahead of time'and particularly when a crisis hits'eeps
your voice out there. -hatever information you are trying to get
out in a crisis needs to be instantly on your website, on a blog
and on your other networing channels, with someone on your
team scanning Twitter, 9aceboo and =oogle constantly to see
how the event is playing out in those arenas. The days of treating
a crisis as a !mainstream media" event only are over.
>. !ake your communications personal. 2 crisis is personal to
those a.ected, so mae it personal to you. 0ti., formal, written
statements can never tae the place of a voice and a face. +eing
visible ' assuming you eep your cool and show empathy ' tones
things down, shows you care and pro%ects competence.
?. "ake responsibility early. This is not the same as assuming
blame. =ood attorneys understand that taing responsibility often
can reduce damage awards or result in a more reasonable
regulatory fnding or settlement.
2 crisis is a legend in the maing. -hen you treat it that way ' rather
than %ust some $ue you hope will go away ' the actions you need to
tae become clearer. The truth will come out. +est that it come frst
from you.