Managing in Crisis
February 12, 2010Recently, the world watched on as Toyota went through a PR nightmare that included brake problems and accelerator issues with their vehicles. Their name, usually a symbol of quality, has been dragged through the mud. Let’s take a look at how this crisis could have been better managed:
Admit it
Nothing alienates consumers more than a bold-faced lie. If it’s obvious to everyone that there is a problem, no amount of denying it will make it go away. It takes more guts to tell the truth than to put your head in sand.
Respond Quickly
It took Toyota 2 weeks to respond to this crisis. Don’t let the media put words in your mouth. Be the first to respond if there is a major issue with your product. Be sure to present the facts and let consumers know exactly how you plan to fix the problem.
Restore Consumer Confidence
By admitting your mistake and being the first to respond, you will show consumers that your company not only stands behind its products, you also take responsibility when that product is faulty. Offer to fix their problem for free, offer replacements and refunds. Your company may lose money at first, but doing this will restore your name and consumer’s will regain confidence in your product knowing you stand behind it.
Move On
After the problem has been addressed, move on to different and positive initiatives by your company. Sometimes it’s as simple as reminding the public what made your company successful before the crisis.