The ultimate measure of a man is not where he stands in moments of comfort and convenience, but where he stands at times of challenge and controversy.-Martin Luther King Jr.
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I wanted to look outside of the industry today, and see what I could learn from other companies or organizations that are going through crisis. Specifically, organizations that have typically been looked at as solid performers and highly dependable. I talk about Toyota a lot on this blog, and Kaizen is an immensely inspirational concept here. Tiger Woods and the Secret Service are also leaders in their industries, and have been held up to a high standard as well. What they all have in common is that they have all faced ‘problems’ that have negatively impacted their reputations.
What I wanted to highlight with all cases, is that the actions of the CEO or leaders of these organizations during times of crisis, is absolutely vital. And in all cases, minus maybe the Secret Service, these groups are taking some serious hits because the leaders are not doing enough to either apologize or to make amends for the actions of their organizations. Perception is everything, and all of these groups listed below are taking some big hits for their actions, or lack there of.
So what can we learn from them? Well for Toyota and Tiger Woods, the verdict is still out. But at the very least, we can deduct that the media and public want some honesty and they want some apologies for not living up to their ideals. The public has a vision of what these companies are supposed to be, and it is up to those companies to live up to that image. After all, these guys did not start off with bad reputations and in fact have sterling reputations. These two companies have mad a lot of money off of that reputation, so it is up to them to do what they can to live up to it.
It’s the same with the Secret Service, but Mr. Sullivan had to answer to congress for the actions of the Secret Service and the Secret Service does not work for profit. But they do work for the tax payers and the President, and they are accountable. With the Iraqi shoe incident under President Bush, and with the Salahi incident with President Obama, these two incidents were very public embarrassments that the USSS had to deal with. There were some in the media that were calling for Mr. Sullivan’s resignation even. Although I think some public trust has been diminished with these incidents, for the most part, the USSS has recovered and are out of the limelight. What took the edge off, in my opinion, was Mr. Sullivan getting out front about it all and taking full blame.
Which begs the question? Why wasn’t there dismissals or reprimands for this incident? I suspect that because this is government, that firing people or reprimands are just ‘too stern’ and harsh for the Secret Service. Firing some folks would have added some action to the apology given, but in today’s touchy feely government, probably too extreme.
Or maybe it was because Mr. Sullivan was up front and took the blame right off the bat, that the public really didn’t apply the pressure necessary to force a punishment? He is still in that position, and still tasked with the protection of the President. I also don’t see a push for his removal from any kind of massive outrage from the taxpayers.
So what can we learn from this? Having some humility in the face of crisis, is something that leaders need think about when it comes to dealing with the public. Of course you also want to be a source of strength and stability for your company, but you also want to show that you care what the public thinks.
Maybe all of these groups got too comfortable with their position, and maybe bleeding a little was good for them?Maybe the leaders will get humble again, and try to redeem themselves? A lot depends upon the leader, and how they deal with crisis, and this industry certainly has had it’s fair share of that. Learning from other companies, and how they deal with crisis, is an excellent idea if you care about ‘being prepared’ for future incidents. Interesting stuff, and I would like to hear what you guys think are the lessons learned? –Matt
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Toyota and Tiger Woods: Kindred spirits
By Alex Taylor III
February 11, 2010
NEW YORK (Fortune) — The question is being raised more and more: Can Toyota recover its reputation?
There is no simple answer. The automaker once enjoyed exceptional renown. In addition to being the largest and most profitable auto company on the planet, Toyota was the most studied and copied. Its production system became a benchmark and a model for competitors to emulate around the world.
On top of that, Toyota was known for always putting the customer first, hence its passion for building cars with the highest quality and reliability. The automaker obsessively studied car buyers to find out what they wanted and then provided it for them. It became a leader in new vehicle segments like crossovers, and new technologies like gas-electric hybrids.
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