Field Notes Inside an Integrated Communications Agency

small-giants

  • Toyota: Being Big Instead of Being Great

    More information is coming out about Toyota's stunning recall that has now expanded to Europe and China. Some say that Toyota had to take action before federal regulators stepped in. Some are speculating that in their quest to big bigger they took their eye off of quality and Toyota seems to be confirming this speculation.

    "Our president, Akio Toyoda, has said that expansion may have occurred to the extent where it is difficult for us to keep an eye on the ball," said Paul Nolasco, a Toyota spokesman in Tokyo. "Other executives have said that part of the troubles we are having today have been because of speedy moves in the past," he added, the Washington Post reports.

    Several years ago I read a great book, Small Giants: Companies That Choose to Be Great Instead of Big, by Bo Burlingham. The book profiles eight very different companies that rejected fast growth strategies. The companies are vastly different, but they all share a unwavering commitment to being the best at what they do. These small companies also have other interesting qualities in common, but I won't spoil the book for you.

    I'm not saying big is bad. The Toyota recall should serve as a wake-up call to every business large and small, particularly those businesses that grew rapidly before this latest recession. Growth at the expense of quality will always come back to bite you. In the case of Toyota, it may destroy the brand. Now is a great time to reevaluate processes, quality control and your company's standards of excellence.