Trust can be so fleeting

On January 21, Toyota announced its intention to recall approximately 2.3 million select Toyota Division vehicles equipped with certain accelerator pedal mechanisms that may, in rare instances, mechanically stick in a partially depressed position or return slowly to the idle position. Toyota vehicles affected by the recall include:

• Certain 2009-2010 RAV4
• Certain 2009-2010 Corolla
• 2009-2010 Matrix
• 2005-2010 Avalon
• Certain 2007-2010 Camry
• Certain 2010 Highlander
• 2007-2010 Tundra
• 2008-2010 Sequoia

Within a matter of days, the mood turned from “…big deal” to almost “…oh my God, what do I do now”. Toyota shut down the manufacturing of their 8 best selling models. The Transport Secretary in the US Congressional hearing announced that no one having the recalled Toyota models should drive the car except going to the dealership to get the car fixed. The stock market pushed Toyota shares downed by almost 12% within a matter of a week. What happened? A company whose cars have virtually become the bench mark of auto industry suddenly seems to be caught in its own success.

1. We live in such an interconnected and 24 hours news channel world that within a matter of hours any news can spread around the world sufficient enough to even rattle a rock solid reputation of companies like Toyota.

2. Media in their effort to sensationalize the news can really play to the psyche of people in evoking emotions at the extreme end.

3. Media channels like CNN, BBC, Fox; internet media like facebook, twitter and blogs have international reach which goes far beyond just their reach. Their coverage has the effect of shaping the opinion of masses that for most of the time fails to distinguish between facts and fictions

However, it is no denying that Toyota grossly miscalculated the magnitude of the problems affecting their cars. Hundreds of people over last few years reported problem that their accelerators just seems to get stuck and car races to uncontrolled speed resulting in even deaths of drivers and passengers.

What lesson does this event gives to us :

1. Trust and faith can be extremely fleeting - While it takes years of hard and impeccable work to reach a position of envy, it just takes a few moments or potentially a week in case of Toyota to lose the reputation. Building it back will again need years of hard work. So even if you are wildly successful, don’t take your eyes off the most critical piece of your brand, in case of Toyota- Safety

2. Perception always precedes reality - While I thought that in the last couple of years the quality of Toyota cars have come down and the quality of American cars have gone up, still I went ahead and bought a Toyota car just a couple of months back.

3. It will take a radically different kind of thinking and action in the 21st century to tackle bad news. The timing and the art of communication has to be mastered. The CEO of Toyota took almost 10 days to come out and assure the masses that they can still trust their cars. In these times of lightening speed internet world, such kind of response seemed to be so 19th century. Leaders need to be seen ahead of the problem not behind the problem.

4. Swift, decisive and futuristic action needs to be taken for defects that affect millions.

Don’t you think that some or all of these lessons also apply in our personal life? I do