Toyota and Managing a Crisis

We recently read a great analysis of Toyota’s recall crisis in The Detroit Free Press.

The article describes how growing pains caused by rapid expansion, strained engineering resources, and a centralized corporate structure put stress on Toyota’s admired corporate discipline – and created the the company’s first serious recall in more than 50 years of selling cars in the U.S. Pressured to reach ever higher levels of market share, newer leaders with less experience were assigned critical quality-assurance responsibilities – to devastating effect.

Toyota’s crisis shows the complexity that today’s leaders face in responding to upheavals caused by increasing globalization, rapidly evolving customer demands, and intense competitive pressure. Toyota took its hands off the wheel and actively contributed to its own image decline, regardless of what the eventual resolution of claims against it will be.

Over the next few years, we are sure Toyota’s problems will become the fodder for many B-school case studies.

You can find a link to this article here:

Toyota’s culture faulted in recall crisis