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The Importance Of Planning

The document discusses the importance of planning for Toyota following its recalls crisis. It analyzes Toyota's mission, vision, values, history and checks how well it adhered to these. It identifies issues Toyota faced, new goals, strengths/weaknesses and external forces. It prioritizes key audiences and develops messages around identifying problems, cooperating with stakeholders and returning to its founding principles. It determines how to deliver these messages to different groups.

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THE IMPORTANCE OF PLANNING. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IMAGINE REACHING THE TOP OF AN INDUSTRY. Writing For Public Relations photo: flyingpigbrush at photobucket Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
ONLY TO FIND THAT YOU LOST THE WAY. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas photo: IMPORT Tuner
NEW PLANNING STARTS WITH THE PAST. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF A MISSION. A mission is the purpose of the organization. • It determines where the organization succeeds and is challenged. • It provides direction internally and a brand promise externally. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF A MISSION. Toyota seeks to create a more prosperous society through automotive manufacturing. Toyota Worldwide Mission, 2003 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF A MISSION. To attract and attain customers with high-valued products and services and the most satisfying experience in America. Toyota U.S.A. Mission, 2010 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF A VISION. A vision is the potential of the organization. • It determines where the company wants to go. • It requires objective evaluation to determine achievability. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF A VISION. Toyota aims to achieve long-term, stable growth in harmony with the environment, the global economy, the local communities it serves, and its stakeholders. Toyota Worldwide Vision, 2003 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF A VISION. To be the most successful and respected car company in America. Toyota U.S.A.Vision, 2010 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF VALUES. Values establish how a vision is to be achieved. • It determines what an organization cares about. • It prioritizes who will benefit from the pursuit of the vision. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF VALUES. When my grandfather brought Toyota into the auto business in 1937, he created a set of principles that has always guided how we operate. Akio Toyoda, Wall Street Journal Op-Ed, 2010 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF VALUES. • Focus on long-term over short-term goals. • Bring problems to the surface every time. • Employ pull system to reduce overproduction. • Level out the workload, minimizing waste. • Get quality right the first time. • Standardize proven systems. • Operate with internal transparency. THE TOYOTA WAY. Summation, 1937 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF VALUES. • Only use reliable technologies. • Nurture leaders to adopt the philosophy. • Create an empowered culture to spot problems. • Respect your partners and challenge them. • Establish consensus before taking swift action. • Gain insights from firsthand experience. • Practice relentless reflection and learn. THE TOYOTA WAY. Summation, 1937 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF HISTORY. History provides the context for reflection. • It tells the who, what, when, where, and why. • It includes all major successes and failures. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF HISTORY. The principles of the Toyota production system apply everywhere.Virtually every U.S. manufacturer is trying some elements of the Toyota system. Gary McClimans, Arthur Andersen & Company, 1992 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
THE IMPORTANCE OF HISTORY. I am convinced that the only way for Toyota to emerge stronger from this experience is to adhere more closely to them [the way]. Akio Toyoda, Wall Street Journal op-ed, 2010 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
TOYOTA CHECKUP. • Toyota cannot retain its existing mission, which it abandoned in 2008. • Toyota cannot retain its existing vision, which it abandoned in 2008. • Toyota cannot rely on its history to overcome current challenges. • Toyota can reinstate the way, which includes its timeless values. • Toyota will be under considerable pressure to prove it will.
TAKING ACTION STARTS WITH THE PRESENT. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY THE REAL ISSUES. Document Internal And External Issues. • The most pressing issues for the organization. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY THE REAL ISSUES. • Toyota had lost the way. • Mishandling of recall damaged reputation. • Early promises are already broken. • Recalls continue and fixes don’t work. • Investigators continue probes of company. • Cost of protecting bonds against default rise. • Sales drop another nine percent. • Stocks are sluggish, reliant on external events. • Company has resorted to fire sale incentives. • 55 percent of Americans say company failed. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY NEW GOALS. Adjust Goals To Align With Situation. • Set goals that meet current events and mission, vision, etc. • These goals DO NOT include sales but have end results. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY NEW GOALS. • Reorganize mission, vision, and values. • Operate with authenticity, short-term transparency. • Only make promises that can be kept. • Identify and isolate the real problem. • Develop cooperative agreements with investigators. • Restore trust with investors. • Set realistic recovery sales projections. • Demonstrate long-term ability for correction. • Prove quality guarantees over short-term sales. • Invigorate customer loyalty base. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY STRENGTHS AND WEAKNESSES. Assess The Ability To Meet Goals. • All goals and objectives must be reachable. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY STRENGTHS AND WEAKNESSES. • Immediate issues require reorganization delays. • Reputation damage might be too severe. • Promises have already been broken. • The real problem seems elusive. • Investigators view issue as industry-wide problem. • Stakeholders are questioning leadership. • Dealerships are suffering from sales drop. • Company overly aggressive in regaining trust. • Slow sales reinforce the negative message. • Family of killed officer lawsuit presses forward. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY EXTERNAL FORCES. Assess The Market Conditions. • Find out what other factors are influencing the company. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY EXTERNAL FORCES. • Ford claims top auto sales in the United States. • Interest-free financing is competitive. • Legislators press CO2 proposals. • 2009 was the worst year for industry. • Consumers have elevated their expectations. • Government bailed out competitors. • India and China want to crack U.S. market. • Consumers are focused on smaller cars. • Recalls are likely to cause legislative action. • Manufacturing costs are likely to increase. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY SELF-IMPOSED RESTRAINTS. Consider Any Self-Imposed Restraints. • Determine what internal decisions, including budget, impact communication. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY SELF-IMPOSED RESTRAINTS. • Reinstate Toyota Way values. • Halt production until problems are solved. • Dealers are asked not to address crisis. • Limited number of hours to fix problems. • Minimize plant closures to keep employees. • Act according to increased scrutiny. • Allow dealers to continue advertising. • Accept more transparency than ever before. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
TOYOTA CHECKUP. • Toyota is struggling to accept short-term transparency. • Toyota made promises too early, damaging authenticity. • Toyota issue is exacerbated by external forces. • Toyota does not seem able to identify the real problem. • Toyota recalls date back to cars produced in 2005. • Toyota is overemphasizing a lapse in leadership, which expands the problem to everything.
PRIORITIZE MOST IMPORTANT PUBLICS. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY PUBLICS. Identify Which Publics Are Critical. • Prioritize which publics need communication first. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY AND PRIORITIZE PUBLICS. • Employees. • Dealers. • Regulators. • Customers. • Loyalists. • Consumer Advocacy Groups. • Investors. • Media. • Legislators. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
DEFINE THEIR IMPORTANCE. • Employees. Need assurance that the crisis can be resolved; key to fixing problems. • Dealers. Need instructions on how to respond to crisis; hardest hit by crisis. • Regulators. They are the public that the media will turn to most. • Customers. Customers personally impacted by the recall; all customers. • Loyalists. Customers that are brand ambassadors; express willingness to stand by it. • Consumer Advocacy Groups. Second most likely source for the media; may campaign. • Investors. Need less assurance if the company can demonstrate limited impact. • Media. Can set the agenda for conversation; provide benchmark for communication. • Legislators. Need least assurance based only on how all other publics are responding. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
TOYOTA CHECKUP. • Toyota did not properly prioritize its publics. • Toyota tried to rely on past reputation too quickly. • Toyota attempted to appeal to the mass public first. • Toyota has since reacted to whichever public seems loudest. • Toyota customers still seem uncertain. • Toyota dealers have an unaligned approach in advertising, public relations, and the recall. • Legislators, regulators, and advocacy groups all have different messages.
DEVELOP PRIMARY MESSAGES. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY MOST IMPORTANT MESSAGES. Determine The Most Important Messages. • Determine what the message would be if the problem is identified. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY MOST IMPORTANT MESSAGES. • The most critical message is authenticity in identifying the most direct problem. • The problem needs to be isolated and higher standards set to minimize reoccurrence. • The company will stand by its products and make it right. • The company has developed an executable plan. • The company is on the forefront of technology. • The company still provides contrast to competitors. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY MESSAGES FROM MEDIA. • The company is unable to identify the real problem. • The company admits lapses in its own standards caused the problem. • The company has departed from the way. • The company admits lapse in leadership. • The company cannot properly execute its plan. • The company needs deeper investigative probes. • Legislators want full transparency. • The company knowingly put profits before safety. • The company over promises; under delivers. • Unions see a real opportunity to move in. • Sales drop not as high as expected. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IDENTIFY MESSAGES FROM PUBLICS. • Consumers say company has not fixed the problem. • Consumers say the company has broken their trust. • Consumers are concerned for their safety. • Consumers are afraid to drive. • Regulators say stronger standards are needed. • Legislators are not satisfied with explanation. • Advocacy groups want black box data. • Advocacy groups say company is too PR focused. • Former insiders claim cover-up of limited recalls. • Secret deal allowed company to reduce loss. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
TOYOTA CHECKUP. • Toyota did not address the right problem. • Toyota has not expressed empathy for the problem. • Toyota stakeholders are not satisfied with handling. • Toyota lapse in leadership has become a primary message. • Toyota allowed too many messages to overshadow the primary messages. • Toyota dealers are running advertisements as if nothing has happened. • Toyota underestimated former insider messages being added to the mix. • Toyota only had good news from investors, who expected lower sales.
DEVELOP MESSAGE DELIVERY. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
DEVELOP MESSAGE DELIVERY SYSTEM. Determine The Primary Messages. • Identify the three most critical messages people can remember. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
DETERMINE PRIMARY MESSAGES. • Toyota is focusing on identifying problem, being responsive to customers. • Toyota is cooperating with stakeholders with renewed sense of open communication. • Toyota will reassess growth, return to the way, and deliver on innovation. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
DETERMINE WHO RECEIVES MESSAGE. • Toyota focusing on identifying problem and being responsive to customers. • Dealers. • Customers. • Loyalists. • Employees. • Advocacy Groups. • Toyota is cooperating with stakeholders with renewed sense of open communication. • Legislators. • Regulators. • Media. • Dealers. • Employees. • Toyota will reassess growth, return to the way, and deliver on innovation. • Investors. • Media. • Dealers. • Employees. • Vendors. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
DETERMINE DELIVERY METHOD. • Employees. Direct from leadership, reinforced with top down training programs. • Dealers. Communication plan kits for dealers, with local market plan. • Regulators. Direct communication, with ongoing alerts and updates. • Customers. Direct one-on-one notifications, with dealer assistance, reinforced on Web. • Loyalists. Social media engagement, with ongoing updates on successes. • Advocacy Groups. Public relations, newsletters, and cooperative programs. • Investors. Direct one-on-one communication to key investors and public relations. • Media. Ongoing public relations, with cooperation from other publics. • Legislators. Industry updates as well as updates on action taken by company. • Public. Web site, social media, and reinforce local dealer advertising over national. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
TOYOTA CHECKUP. • Toyota has too many messages for primary messages to stick. • Toyota is not delivering the right message to the right people. • Toyota is relying too heavily on mass media. • Toyota is delivering via two methods: one company driven, one dealer driven. • Toyota has abandoned one-on-one communication, decreasing trust. • Toyota has created an environment where media goes to it last. • Legislators, regulators, and stakeholders have damaging messages. • Toyota is setting itself up to be the example of an industry-wide problem.
IMPLEMENTATION AND EXECUTION. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IMPLEMENT AND EXECUTE. Implement The Plan. • Decide whether the message is static or evolving. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
IMPLEMENT AND EXECUTE. • The communication will evolve, from the immediate crisis to long term. • The cooperative thrust will remain part of the long-term culture of the company. • The restructured objectives will be communicated as they are achieved. • There will be a long-term emphasis on innovation, quality, and safety. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
SPEED OF IMPLEMENTATION. Develop A Timeline For Implementation. • Timelines are critical in the execution of proactive communication. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
SPEED OF IMPLEMENTATION. Phase 1 (0-90 Days). • Focus global emphasis on fixing the problem. • Focus dealer communication on reaching existing customers impacted by recall. • De-emphasize national advertising in favor of dealer advertising on non-recall cars. • Provide financing incentives, not fire sales, and extended or enhanced warranties. • Implement cooperative programs with regulators and advocacy groups. • Implement updates with legislators and key government officials. • Focus all employee efforts on solving any manufacturing problems. • Shore up support from loyalists and provide non-recall customers incentives. • Re-establish media relations, helping them to source partners and stakeholders. • Reinforce that the company will invest in new culture once crisis is over. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
SPEED OF IMPLEMENTATION. Phase 2 (90-180 Days). • Shift marketing to recall successes as crisis ends. • Provide dealers with ongoing communication for local market public relations. • Slowly increase national advertising only after the recall crisis is concluded. • Retain extended/enhanced warranty program, reinforcing commitment. • Implement new programs that allow continued cooperative efforts. • Refocus legislators and government officials on community partnership. • Implement employee training programs to reinstill the way. • Expand engagement among consumers via social media to recreate culture. • Re-establish direct media relations, allowing for greater direct accessibility. • Reveal breakthrough technologies that are a sign of things to come. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
SPEED OF IMPLEMENTATION. Phase 3 (180+ Days). • Shift marketing to innovation, upgraded standards. • Provide dealers with localized communication plans for consistency. • Increase national advertising with a focus on the future, not the past. • Reach out and target lost customers to prove the company deserves second chance. • Settle any lawsuits that linger as a result of the recall. • Develop localized community partnership programs, direct and with dealers. • Reward employees based on their ability to adopt philosophy. • Recapture the feeling that people once had because they owned Toyota. • Work with media to share new vision for the automotive industry. • Develop new mission and vision based on the way, but one that can be obtainable. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
COST OF IMPLEMENTATION. Develop A Budget For Implementation. • Adopt a measurement model that identifies outcomes. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
COST OF IMPLEMENTATION. • Toyota has a $1 billion advertising budget in U.S. • Reassess planned media purchases and emphasize more grassroots. • Reallocate some advertising budget to fund warranties and reliability programs. • Spread funding over over time, with increases in each phase of the plan. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
ANALYZE FEEDBACK AND ADJUST. Analyze, Adjust, Repeat. • All communication plans are flexible and adapt to feedback. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
ANALYZE FEEDBACK AND ADJUST. • The success of any plan will be contingent on finding a new customer base. • Advertising focused on the past has already failed. Toyota cannot go back. • While the original values are valid, the existing mission can no longer be met. • As the campaign unfolds, budgets are prioritized to address critical needs. • Secondary priorities will consider which campaign elements work. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
TOYOTA CHECKUP. • Toyota has run a reactionary campaign, without considering the situation. • Toyota has a plan, but has not proven that it works. • Toyota seems to think it can restore reputation, but it cannot. • Toyota seems to be operating ad hoc, with no timeline. • Toyota has not set priorities; it set long-term goals over immediate needs. • Toyota did not include cooperative programs, resulting in us vs. them scenario. • Toyota campaign handling resulted in loss of trust in leadership. • Toyota is primarily defending a reputation it already admits it has lost.
BUDGET AND CONTINGENCY. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
BUDGET AND CONTINGENCY. Setting A Budget. • All communication plans require a detailed accounting. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
ESTABLISH A BUDGET. • Toyota currently has a $1 billion external advertising budget. • Most winning brand budgets consist of more than 2 percent of sales revenue. • Toyota will likely require additional investments in internal communication. • Not counting advertising, the recall is estimated to cost at least $2 billion. • More emphasis on cooperative programs to reduce cost and increase exposure. • Plan needs to include when and how the money will be spent. • Planning needs to include for projected sales losses. • Set percentage of budget needs for contingency. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
PLAN FOR CONTINGENCY. • Not all elements of any program will work. • Some elements are contingent on non-communication elements. • In addition to being flexible, the company needs to reserve some funds. • Approximately 5 percent of the budget could be held for contingencies. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
TOYOTA CHECKUP. • Toyota has wasted a portion of its budget on failed recovery campaigns. • Toyota has not placed actions ahead of the message, increasing risk. • Toyota does not seem to have a contingency plan. • Toyota has not invested in the right areas first. • Toyota earned a reprieve with recent sales results, but it will be short. • Toyota needs to create a comprehensive cost analysis, with projected losses. • Toyota will waste more money, attempting to market per usual. • Toyota is going through the motions, but has not completed each step.
CONCLUSION. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
We are taking this experience to heart, making fundamental changes in the way our company does business. Akio Toyoda, Wall Street Journal op-ed, 2010 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
TOYOTA CHECKUP. What Akio Toyoda means is the company made fundamental changes in 2008. And those changes were the wrong ones. Toyota will never regain its standing until it recognizes that its original values do not apply to the post crisis, as much as the values they need during the crisis.
THE IMPORTANCE OF PLANNING. Richard R. Becker, ABC President, Copywrite, Ink. copywriteink.com copywriteink.blogspot.com 702.341.7135 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas

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The Importance Of Planning

  • 1.
    THE IMPORTANCE OFPLANNING. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 2.
    IMAGINE REACHING THE TOP OF AN INDUSTRY. Writing For Public Relations photo: flyingpigbrush at photobucket Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 3.
    ONLY TO FINDTHAT YOU LOST THE WAY. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas photo: IMPORT Tuner
  • 4.
    NEW PLANNING STARTSWITH THE PAST. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 5.
    THE IMPORTANCE OFA MISSION. A mission is the purpose of the organization. • It determines where the organization succeeds and is challenged. • It provides direction internally and a brand promise externally. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 6.
    THE IMPORTANCE OFA MISSION. Toyota seeks to create a more prosperous society through automotive manufacturing. Toyota Worldwide Mission, 2003 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 7.
    THE IMPORTANCE OFA MISSION. To attract and attain customers with high-valued products and services and the most satisfying experience in America. Toyota U.S.A. Mission, 2010 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 8.
    THE IMPORTANCE OFA VISION. A vision is the potential of the organization. • It determines where the company wants to go. • It requires objective evaluation to determine achievability. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 9.
    THE IMPORTANCE OFA VISION. Toyota aims to achieve long-term, stable growth in harmony with the environment, the global economy, the local communities it serves, and its stakeholders. Toyota Worldwide Vision, 2003 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 10.
    THE IMPORTANCE OFA VISION. To be the most successful and respected car company in America. Toyota U.S.A.Vision, 2010 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 11.
    THE IMPORTANCE OFVALUES. Values establish how a vision is to be achieved. • It determines what an organization cares about. • It prioritizes who will benefit from the pursuit of the vision. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 12.
    THE IMPORTANCE OFVALUES. When my grandfather brought Toyota into the auto business in 1937, he created a set of principles that has always guided how we operate. Akio Toyoda, Wall Street Journal Op-Ed, 2010 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 13.
    THE IMPORTANCE OFVALUES. • Focus on long-term over short-term goals. • Bring problems to the surface every time. • Employ pull system to reduce overproduction. • Level out the workload, minimizing waste. • Get quality right the first time. • Standardize proven systems. • Operate with internal transparency. THE TOYOTA WAY. Summation, 1937 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 14.
    THE IMPORTANCE OFVALUES. • Only use reliable technologies. • Nurture leaders to adopt the philosophy. • Create an empowered culture to spot problems. • Respect your partners and challenge them. • Establish consensus before taking swift action. • Gain insights from firsthand experience. • Practice relentless reflection and learn. THE TOYOTA WAY. Summation, 1937 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 15.
    THE IMPORTANCE OFHISTORY. History provides the context for reflection. • It tells the who, what, when, where, and why. • It includes all major successes and failures. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 16.
    THE IMPORTANCE OFHISTORY. The principles of the Toyota production system apply everywhere.Virtually every U.S. manufacturer is trying some elements of the Toyota system. Gary McClimans, Arthur Andersen & Company, 1992 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 17.
    THE IMPORTANCE OFHISTORY. I am convinced that the only way for Toyota to emerge stronger from this experience is to adhere more closely to them [the way]. Akio Toyoda, Wall Street Journal op-ed, 2010 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 18.
    TOYOTA CHECKUP. • Toyota cannotretain its existing mission, which it abandoned in 2008. • Toyota cannot retain its existing vision, which it abandoned in 2008. • Toyota cannot rely on its history to overcome current challenges. • Toyota can reinstate the way, which includes its timeless values. • Toyota will be under considerable pressure to prove it will.
  • 19.
    TAKING ACTION STARTSWITH THE PRESENT. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 20.
    IDENTIFY THE REALISSUES. Document Internal And External Issues. • The most pressing issues for the organization. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 21.
    IDENTIFY THE REALISSUES. • Toyota had lost the way. • Mishandling of recall damaged reputation. • Early promises are already broken. • Recalls continue and fixes don’t work. • Investigators continue probes of company. • Cost of protecting bonds against default rise. • Sales drop another nine percent. • Stocks are sluggish, reliant on external events. • Company has resorted to fire sale incentives. • 55 percent of Americans say company failed. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 22.
    IDENTIFY NEW GOALS. AdjustGoals To Align With Situation. • Set goals that meet current events and mission, vision, etc. • These goals DO NOT include sales but have end results. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 23.
    IDENTIFY NEW GOALS. • Reorganizemission, vision, and values. • Operate with authenticity, short-term transparency. • Only make promises that can be kept. • Identify and isolate the real problem. • Develop cooperative agreements with investigators. • Restore trust with investors. • Set realistic recovery sales projections. • Demonstrate long-term ability for correction. • Prove quality guarantees over short-term sales. • Invigorate customer loyalty base. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 24.
    IDENTIFY STRENGTHS ANDWEAKNESSES. Assess The Ability To Meet Goals. • All goals and objectives must be reachable. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 25.
    IDENTIFY STRENGTHS ANDWEAKNESSES. • Immediate issues require reorganization delays. • Reputation damage might be too severe. • Promises have already been broken. • The real problem seems elusive. • Investigators view issue as industry-wide problem. • Stakeholders are questioning leadership. • Dealerships are suffering from sales drop. • Company overly aggressive in regaining trust. • Slow sales reinforce the negative message. • Family of killed officer lawsuit presses forward. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 26.
    IDENTIFY EXTERNAL FORCES. AssessThe Market Conditions. • Find out what other factors are influencing the company. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 27.
    IDENTIFY EXTERNAL FORCES. • Fordclaims top auto sales in the United States. • Interest-free financing is competitive. • Legislators press CO2 proposals. • 2009 was the worst year for industry. • Consumers have elevated their expectations. • Government bailed out competitors. • India and China want to crack U.S. market. • Consumers are focused on smaller cars. • Recalls are likely to cause legislative action. • Manufacturing costs are likely to increase. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 28.
    IDENTIFY SELF-IMPOSED RESTRAINTS. ConsiderAny Self-Imposed Restraints. • Determine what internal decisions, including budget, impact communication. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 29.
    IDENTIFY SELF-IMPOSED RESTRAINTS. • ReinstateToyota Way values. • Halt production until problems are solved. • Dealers are asked not to address crisis. • Limited number of hours to fix problems. • Minimize plant closures to keep employees. • Act according to increased scrutiny. • Allow dealers to continue advertising. • Accept more transparency than ever before. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 30.
    TOYOTA CHECKUP. • Toyota isstruggling to accept short-term transparency. • Toyota made promises too early, damaging authenticity. • Toyota issue is exacerbated by external forces. • Toyota does not seem able to identify the real problem. • Toyota recalls date back to cars produced in 2005. • Toyota is overemphasizing a lapse in leadership, which expands the problem to everything.
  • 31.
    PRIORITIZE MOST IMPORTANTPUBLICS. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 32.
    IDENTIFY PUBLICS. Identify WhichPublics Are Critical. • Prioritize which publics need communication first. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 33.
    IDENTIFY AND PRIORITIZEPUBLICS. • Employees. • Dealers. • Regulators. • Customers. • Loyalists. • Consumer Advocacy Groups. • Investors. • Media. • Legislators. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 34.
    DEFINE THEIR IMPORTANCE. • Employees. Need assurance that the crisis can be resolved; key to fixing problems. • Dealers. Need instructions on how to respond to crisis; hardest hit by crisis. • Regulators. They are the public that the media will turn to most. • Customers. Customers personally impacted by the recall; all customers. • Loyalists. Customers that are brand ambassadors; express willingness to stand by it. • Consumer Advocacy Groups. Second most likely source for the media; may campaign. • Investors. Need less assurance if the company can demonstrate limited impact. • Media. Can set the agenda for conversation; provide benchmark for communication. • Legislators. Need least assurance based only on how all other publics are responding. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 35.
    TOYOTA CHECKUP. • Toyota didnot properly prioritize its publics. • Toyota tried to rely on past reputation too quickly. • Toyota attempted to appeal to the mass public first. • Toyota has since reacted to whichever public seems loudest. • Toyota customers still seem uncertain. • Toyota dealers have an unaligned approach in advertising, public relations, and the recall. • Legislators, regulators, and advocacy groups all have different messages.
  • 36.
    DEVELOP PRIMARY MESSAGES. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 37.
    IDENTIFY MOST IMPORTANTMESSAGES. Determine The Most Important Messages. • Determine what the message would be if the problem is identified. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 38.
    IDENTIFY MOST IMPORTANTMESSAGES. • The most critical message is authenticity in identifying the most direct problem. • The problem needs to be isolated and higher standards set to minimize reoccurrence. • The company will stand by its products and make it right. • The company has developed an executable plan. • The company is on the forefront of technology. • The company still provides contrast to competitors. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 39.
    IDENTIFY MESSAGES FROMMEDIA. • The company is unable to identify the real problem. • The company admits lapses in its own standards caused the problem. • The company has departed from the way. • The company admits lapse in leadership. • The company cannot properly execute its plan. • The company needs deeper investigative probes. • Legislators want full transparency. • The company knowingly put profits before safety. • The company over promises; under delivers. • Unions see a real opportunity to move in. • Sales drop not as high as expected. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 40.
    IDENTIFY MESSAGES FROMPUBLICS. • Consumers say company has not fixed the problem. • Consumers say the company has broken their trust. • Consumers are concerned for their safety. • Consumers are afraid to drive. • Regulators say stronger standards are needed. • Legislators are not satisfied with explanation. • Advocacy groups want black box data. • Advocacy groups say company is too PR focused. • Former insiders claim cover-up of limited recalls. • Secret deal allowed company to reduce loss. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 41.
    TOYOTA CHECKUP. • Toyota didnot address the right problem. • Toyota has not expressed empathy for the problem. • Toyota stakeholders are not satisfied with handling. • Toyota lapse in leadership has become a primary message. • Toyota allowed too many messages to overshadow the primary messages. • Toyota dealers are running advertisements as if nothing has happened. • Toyota underestimated former insider messages being added to the mix. • Toyota only had good news from investors, who expected lower sales.
  • 42.
    DEVELOP MESSAGE DELIVERY. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 43.
    DEVELOP MESSAGE DELIVERYSYSTEM. Determine The Primary Messages. • Identify the three most critical messages people can remember. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 44.
    DETERMINE PRIMARY MESSAGES. • Toyotais focusing on identifying problem, being responsive to customers. • Toyota is cooperating with stakeholders with renewed sense of open communication. • Toyota will reassess growth, return to the way, and deliver on innovation. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 45.
    DETERMINE WHO RECEIVESMESSAGE. • Toyota focusing on identifying problem and being responsive to customers. • Dealers. • Customers. • Loyalists. • Employees. • Advocacy Groups. • Toyota is cooperating with stakeholders with renewed sense of open communication. • Legislators. • Regulators. • Media. • Dealers. • Employees. • Toyota will reassess growth, return to the way, and deliver on innovation. • Investors. • Media. • Dealers. • Employees. • Vendors. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 46.
    DETERMINE DELIVERY METHOD. • Employees. Direct from leadership, reinforced with top down training programs. • Dealers. Communication plan kits for dealers, with local market plan. • Regulators. Direct communication, with ongoing alerts and updates. • Customers. Direct one-on-one notifications, with dealer assistance, reinforced on Web. • Loyalists. Social media engagement, with ongoing updates on successes. • Advocacy Groups. Public relations, newsletters, and cooperative programs. • Investors. Direct one-on-one communication to key investors and public relations. • Media. Ongoing public relations, with cooperation from other publics. • Legislators. Industry updates as well as updates on action taken by company. • Public. Web site, social media, and reinforce local dealer advertising over national. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 47.
    TOYOTA CHECKUP. • Toyota hastoo many messages for primary messages to stick. • Toyota is not delivering the right message to the right people. • Toyota is relying too heavily on mass media. • Toyota is delivering via two methods: one company driven, one dealer driven. • Toyota has abandoned one-on-one communication, decreasing trust. • Toyota has created an environment where media goes to it last. • Legislators, regulators, and stakeholders have damaging messages. • Toyota is setting itself up to be the example of an industry-wide problem.
  • 48.
    IMPLEMENTATION AND EXECUTION. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 49.
    IMPLEMENT AND EXECUTE. ImplementThe Plan. • Decide whether the message is static or evolving. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 50.
    IMPLEMENT AND EXECUTE. • Thecommunication will evolve, from the immediate crisis to long term. • The cooperative thrust will remain part of the long-term culture of the company. • The restructured objectives will be communicated as they are achieved. • There will be a long-term emphasis on innovation, quality, and safety. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 51.
    SPEED OF IMPLEMENTATION. DevelopA Timeline For Implementation. • Timelines are critical in the execution of proactive communication. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 52.
    SPEED OF IMPLEMENTATION. Phase 1 (0-90 Days). • Focus global emphasis on fixing the problem. • Focus dealer communication on reaching existing customers impacted by recall. • De-emphasize national advertising in favor of dealer advertising on non-recall cars. • Provide financing incentives, not fire sales, and extended or enhanced warranties. • Implement cooperative programs with regulators and advocacy groups. • Implement updates with legislators and key government officials. • Focus all employee efforts on solving any manufacturing problems. • Shore up support from loyalists and provide non-recall customers incentives. • Re-establish media relations, helping them to source partners and stakeholders. • Reinforce that the company will invest in new culture once crisis is over. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 53.
    SPEED OF IMPLEMENTATION. Phase 2 (90-180 Days). • Shift marketing to recall successes as crisis ends. • Provide dealers with ongoing communication for local market public relations. • Slowly increase national advertising only after the recall crisis is concluded. • Retain extended/enhanced warranty program, reinforcing commitment. • Implement new programs that allow continued cooperative efforts. • Refocus legislators and government officials on community partnership. • Implement employee training programs to reinstill the way. • Expand engagement among consumers via social media to recreate culture. • Re-establish direct media relations, allowing for greater direct accessibility. • Reveal breakthrough technologies that are a sign of things to come. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 54.
    SPEED OF IMPLEMENTATION. Phase 3 (180+ Days). • Shift marketing to innovation, upgraded standards. • Provide dealers with localized communication plans for consistency. • Increase national advertising with a focus on the future, not the past. • Reach out and target lost customers to prove the company deserves second chance. • Settle any lawsuits that linger as a result of the recall. • Develop localized community partnership programs, direct and with dealers. • Reward employees based on their ability to adopt philosophy. • Recapture the feeling that people once had because they owned Toyota. • Work with media to share new vision for the automotive industry. • Develop new mission and vision based on the way, but one that can be obtainable. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 55.
    COST OF IMPLEMENTATION. DevelopA Budget For Implementation. • Adopt a measurement model that identifies outcomes. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 56.
    COST OF IMPLEMENTATION. • Toyotahas a $1 billion advertising budget in U.S. • Reassess planned media purchases and emphasize more grassroots. • Reallocate some advertising budget to fund warranties and reliability programs. • Spread funding over over time, with increases in each phase of the plan. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 57.
    ANALYZE FEEDBACK ANDADJUST. Analyze, Adjust, Repeat. • All communication plans are flexible and adapt to feedback. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 58.
    ANALYZE FEEDBACK ANDADJUST. • The success of any plan will be contingent on finding a new customer base. • Advertising focused on the past has already failed. Toyota cannot go back. • While the original values are valid, the existing mission can no longer be met. • As the campaign unfolds, budgets are prioritized to address critical needs. • Secondary priorities will consider which campaign elements work. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 59.
    TOYOTA CHECKUP. • Toyota hasrun a reactionary campaign, without considering the situation. • Toyota has a plan, but has not proven that it works. • Toyota seems to think it can restore reputation, but it cannot. • Toyota seems to be operating ad hoc, with no timeline. • Toyota has not set priorities; it set long-term goals over immediate needs. • Toyota did not include cooperative programs, resulting in us vs. them scenario. • Toyota campaign handling resulted in loss of trust in leadership. • Toyota is primarily defending a reputation it already admits it has lost.
  • 60.
    BUDGET AND CONTINGENCY. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 61.
    BUDGET AND CONTINGENCY. SettingA Budget. • All communication plans require a detailed accounting. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 62.
    ESTABLISH A BUDGET. • Toyotacurrently has a $1 billion external advertising budget. • Most winning brand budgets consist of more than 2 percent of sales revenue. • Toyota will likely require additional investments in internal communication. • Not counting advertising, the recall is estimated to cost at least $2 billion. • More emphasis on cooperative programs to reduce cost and increase exposure. • Plan needs to include when and how the money will be spent. • Planning needs to include for projected sales losses. • Set percentage of budget needs for contingency. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 63.
    PLAN FOR CONTINGENCY. • Notall elements of any program will work. • Some elements are contingent on non-communication elements. • In addition to being flexible, the company needs to reserve some funds. • Approximately 5 percent of the budget could be held for contingencies. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 64.
    TOYOTA CHECKUP. • Toyotahas wasted a portion of its budget on failed recovery campaigns. • Toyota has not placed actions ahead of the message, increasing risk. • Toyota does not seem to have a contingency plan. • Toyota has not invested in the right areas first. • Toyota earned a reprieve with recent sales results, but it will be short. • Toyota needs to create a comprehensive cost analysis, with projected losses. • Toyota will waste more money, attempting to market per usual. • Toyota is going through the motions, but has not completed each step.
  • 65.
    CONCLUSION. Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 66.
    We are takingthis experience to heart, making fundamental changes in the way our company does business. Akio Toyoda, Wall Street Journal op-ed, 2010 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas
  • 67.
    TOYOTA CHECKUP. What Akio Toyoda means is the company made fundamental changes in 2008. And those changes were the wrong ones. Toyota will never regain its standing until it recognizes that its original values do not apply to the post crisis, as much as the values they need during the crisis.
  • 68.
    THE IMPORTANCE OFPLANNING. Richard R. Becker, ABC President, Copywrite, Ink. copywriteink.com copywriteink.blogspot.com 702.341.7135 Writing For Public Relations Richard Becker, Copywrite, Ink. at the University of Nevada, Las Vegas