Guide to Organisation Design: Creating high-performing and adaptable enterprises by Naomi Stanford The Economist

Author:Naomi Stanford, The Economist
Format: epub
Publisher: Perseus Books, LLC

Companies have to work hard at maintaining trust. It is an attribute that is easy to lose if something goes wrong and the organisation’s response is poor. Even though it happened more than 25 years ago, the way that Johnson & Johnson managed the 1982 Tylenol disaster is still cited as an exemplary way of responding to a crisis. The decision taken at the time was to use the company’s Credo as a guide to taking the correct actions. Knowing that “We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services”, leaders were able to act swiftly and with integrity to the situation (cyanide being found in some Tylenol products). Following the immediate withdrawal of all Tylenol products, Johnson & Johnson designed a new packaging process that customers trusted. As a result of its open and clear communications, which were in perfect alignment with its actions during the crisis, the company succeeded in maintaining its customers’ trust.

In contrast, Dell has experienced problems with trust. On its website (www.dell.com) it states:

Dell’s success is based on maintaining direct relationships built on trust. To sustain this trust with our employees, customers, suppliers and investors, we must hold ourselves to the highest standards of business.

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