Biggest at the Expense of Best

Several years ago Toyota decided on a strategy to overtake General Motors as the #1 seller of automobiles in the world.

Toyota has long been a great example of how to drive a keen focus on quality up and down an organization. They set the global standard for automobile manufacturing. As a result, they developed a highly satisfied and loyal customer base which drove them to #2 in automobile sales. And two years ago their strategy paid off as Toyota surpassed GM.

Today Toyota is an example to companies everywhere to be careful what you ask for.

Attaining #1 status has resulted in:

• An extended recall of over 9 million cars
• A production halt at all North American factories building the RAV4, Camry, Corolla, Avalon, Matrix, Highlander, Tundra and Sequoia models
• Dealers being restricted from selling affected cars currently in inventory
• An operational nightmare trying to develop a plan to repair millions of cars in a timely manner
• A massive blow to their brand equity and their reputation for quality
• A financial body blow that will be in the billions of dollars before this is all over
• A share price down 15% in one week

How does a company such as Toyota stray so far from their commitment to quality and customers and end up in such a dire position?

They "forgot" what made them great. They didn't understand the impact of the stress they put on their suppliers and control systems. They "forgot" their primary concern for customers. None of this was intentional by any stretch. But if a company as focused and committed as Toyota can "forget", anyone can.

Books and case studies will be written about the missteps that led to this disaster. Analysis will pin point what went wrong and who is to blame. Hopefully, for Toyota's sake and the sake of many employees around the world, books will be written about how they recovered and recaptured their lofty status.

I'm hoping that at least one book will explain how Toyota - as deeply committed as they were to customers - somehow failed to constantly ask about customer experience throughout the strategy development and implementation. I want to know:

• Who was responsible for representing the voice of the customer when the strategy to become #1 was developed?
• Who was responsible for understanding what the strategy meant in terms of customer experience?
• How did Toyota "forget" what made them great and #2 in the world? How did they "forget" their fierce commitment to quality and customer experience?

That will be a book with great lessons for all of us, adding to the many great lessons we've already learned from Toyota.

(BTW, I don't own a Toyota model subject to this recall. My wife drives a 1996 Camry station wagon with 200,000 miles on it and loves it and will drive it "into the ground". Our mechanic expects at least another 50,000 miles out of the engine and transmission.)