Corporate Reputation – Toyota And The Need For Purpose

I am very fond of the internet. (Even though, obviously, I don’t know all of it.) It’s mostly the way that things just crop up, without one necessarily looking for them, which provide insight into, and opinion on, stuff that is instantly resonant and relevant. There’s always someone out there in webworld who sees the connection between events and best practice, in any field, or sector, or discipline, even when you haven’t. Everything I’ve just said here is, of course, stating the obvious – that’s what you’d expect from the feral communities engendered by the net – and it’s not that which astounds. No – it’s the serendipity with which the net throws things one’s way – almost as if there was some sort of a fate lending an ethereal hand.

Most likely, it’s to do with quantum. Algorithm’s gonna get you.

Anyway – here’s a piece that I think is splendid. It’s from a blog called Decision to Lead – Expanding the Practice of Leadership and it’s by a lady called Frances Frei, who is (according to the blurb) ‘Harvard Business School’s resident expert of service excellence’. Which, to my mind, gives her a bit of gravitas.

The piece is about the whole ongoing Toyota situation of which we are all aware, even if we’re not sure how many cars have been recalled and what, exactly, they’ve been recalled for. Mechanical bloopers, shall we say. Frances comes at it from the angle of what I will call ‘corporate religion’ and what she calls a purpose. You can read the post yourselves, dear blog snorkellers, but Frances posits that Toyota lost its focus on its corporate purpose of ‘improvement’ – improvement of its product and improvement in the way its product was constructed. From the pursuit of this purpose came business success – sales and profits. Toyoat lost its focus – or rather its focus shifted, from improvement as a corporate purpose, to sales and profits as goals in themselves. As these became the goals of the company, so corners were cut, so the pride and motivation of the workforce became less – and it was then but a matter of time before what happened, happened.

It’s a great lesson – shame that it takes a global product recall, and its affect on the consumer, to teach it. The lesson is that businesses and organisations that have true longevity, that are the ones that enjoy enduring success (in the form of sales and profits), that are the ones that engender respect and admiration in their stakeholders – these are businesses for whom sales and profits are not goals in themselves. They are function of the bigger corporate purpose – the mission, the vision, the intent, the corporate religion – whatever you’d wish to call it. With a clearly defined and articulated purpose comes pride and motivation and – yes – reward for the people that make the business or organisation run.

(PS. Lest I be accused of being an unreconstructed, irredeemable hippy, I know that there are industries and business sectors where the purpose is nothing more or less than profit, and the people who are involved in them are wholly subsumed in the pursuit of the purpose – banking, mostly. I will be hippy-ish, mind, and ask whether we’d be in such a global economic bind right now if, perhaps, the bankers had had another purpose, other than sheer greed.)

(PPS. The need for corporate purpose has been around forever. I say this to prevent anyone trying to tell me that it’s part of the New Age of business, where everyone has a voice and everyone’s voice is important, which has been brought about by that life-changing, world-shaping phenomenon, social media. Horse droppings.)

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Filed under Corporate Religion, corporate reputation

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