As Toyota Motor Corp. President Akio Toyoda’s prepares to attend tomorrow’s congressional hearings and the company is served with SEC subpoenas, from today’s Wall Street Journal comes another revelation. This time it’s not about safety, but instead concerns the company’s internal communication about the growing crisis. The piece, titled Support Wavers At Toyota For Chief, gives us a view from the inside:
Some employees complain that they feel they have been left in the dark…
In early February, Mr. Toyoda—the grandson of the company’s founder and known in Japan as “The Prince”—sent an email to employees in Japan to explain the U.S. recall, asking them to work together with him to “regain customer trust” and “work on building great cars” through mutual effort. Since then, he has given three news conferences in Japan within two weeks but there has been no broader internal communication with Toyota employees.
“The only way we find out anything about the crisis is through the media,” said a high-ranking Toyota chief engineer in Japan. “Does Mr. Toyoda have the ability to lead? That’s on every employee’s mind.”
There are several points here worth noting.
- Employees are every company’s ambassadors. They are the living, breathing, walking, talking personification of the company, wherever they go. If your employees are uninformed – or worse, ignored – they become a liability instead of an asset. Too many companies assume that if they don’t tell employees anything, then they won’t have anything to tell anyone else. This is a dangerous assumption, which leads to point #2:
- In an information vacuum, people find sources of information. If they aren’t getting current information from reliable sources, they will seek out and find other sources. And you can be sure the information they hear through the grapevine and the rumor mill won’t be positive, especially if they perceive that they’re being ignored. Not to mention getting information from the media. Employees consider that to be a slap in the face, as if they aren’t important enough to be communicated to directly.
- One of the most valuable intangible assets a company or organization has is trust. It takes a lot of time and investment to build and gain trust, but it doesn’t take much to destroy it. And a culture of trust has to come from within. If your employees don’t feel trusted, they won’t trust you. And I think we all know that can’t lead to anything good. Interesting to note that Mr. Toyoda asks his employees to help him “regain customer trust,” but apparently many of his employees don’t feel trusted. This, in turn, leads to a cycle of distrust.
I remember reading a quote several years ago from a speech by Larry Bossidy, CEO of AlliedSignal Inc., which so simply and eloquently states something many business leaders overlook. I think this really nails it:
“I’ve never seen a company that was able to satisfy its customers which did not also satisfy its employees. Your employees will treat your customers no better than you treat your employees.”
The very best companies are typically the ones that understand this and live it every day. They invest in their employees through their actions – they walk the walk – because they know it builds trust, which makes the organization stronger, more productive, and a better place to work. If your employees feel valued, they will go the extra mile for you. It’s as simple as that.
Building trust is a long-term investment in the future of any organization, and it begins with honest, transparent communication. Why is it so hard for so many companies to understand?
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