Is Denial the New Leadership Standard?

Like many people, I have been closely following the news concerning Toyota and the complete mess they seemed to have brought on themselves. I am also finding myself becoming very irritated by the actions and prior inactions of the executives at Toyota. The other week, a segment on ABC News highlighted a test that was conducted to prove that there is an electrical problem causing the cars to accelerate. On Monday, Toyota executives held a press conference stating that they had conducted their own experiment and that the findings featured on the news segment were wrong. To take that a step further, Toyota not only conducted the test on their own line of vehicles but also did so with other manufactures vehicles. I see several factors wrong with this scenario, but most of all I see that Toyota’s real problem continues to stem from ineffective leadership within their organization.

Here are five things companies and those in leadership positions should not do when being faced with a PR nightmare, diminished consumer confidence and a tarnished image:

1. Spend more time denying that a problem exists and looking for others to blame verses spending time accepting responsibility and correcting what is wrong.
2. Fail or wait extended periods of time to acknowledge that a problem exists and minimize it when others begin to criticize you.
3. Not listening to your customers or following up on their feedback; several months, multiple complaints’ and even death occurred before Toyota acknowledged that they were aware of a problem.
4. Feel that just because your ship is sinking, you might as well take others down with you. Obviously Toyota’s competitors are experiencing an increase in vehicle sales because of this situation, but it is not necessary to conduct a test using their vehicles when your cars are the ones with the issue.
5. Focus on sales and profits in the midst of a disaster. I think this statement speaks for itself.

As with any organization, a company is only as good as the people who are leading it. There are several key competencies that effective leaders possess, but denial is not one of them.

Let me know what you think.