Earl C. Wallace
The Three Dimensional Leader: Negotiating Your Mission, Resources and Context
3-D MRC Leadership Consulting
  • Home
  • Leadership Training
  • Services
    • Leadership Training
    • Culture of Teamwork
    • Change Management
    • Testimonials
  • Resources
  • Contact
    • Buy The Book
    • About
  • 3-D MRC Blogs
    • 3-D Leadership Blog
    • 3-D Organizational Relations Blog
    • 3-D Strategy & Innovation Blog
    • 3-D Education Blog

The Five "R" Model to Rebound from A Product Problem

12/22/2011

0 Comments

 
Companies like Toyota can bounce back from adversity (such as the sticking accelerator pedal problem) if they follow these five steps, modeled after how Johnson and Johnson bounced back from the Tylenol tampering scare of 1982.  The Three-Dimensional Leader: Negotiating Your Mission, Resources and Context, notes that “Many readers are too young to remember how Johnson and Johnson bounced back from the Tylenol tampering, but analyzing it’s response to the crisis gives us a template that all should follow.” 

J&J modeled these steps to overcome adversity:
  1. Reestablish Trust by Acknowleding the Challenge Today (ACT), or as soon as possible. 
  2. Recall the Problematic Product to mitigate further injuries, liabilities and damages
  3. Replace Defective (or Suspicious) Items at no expense to the consumer 
  4. Reinvent the Product with New Features and safeguards that guarantee the problem is fixed and never happens again.  
  5. Report andPublicize Your Good Corporate Citizenship 

Remedy and ACT

Johnson and Johnson responded to Tylenol tampering localized to the Chicago area by undertaking a nationwide notification. 

Recall the Product

It is estimated J&J recalled 31 million bottles of Tylenol with a retail value at that time of over $100 million. 

Replace Defective Items 

J&J offered to exchange solid tablets for any or all capsules consumers had purchased.

Reinvent the Product with New Features

About a month after the recall, J&J reintroduced new, triple-sealed capsules, a safety feature in which consumers had confidence.  

Report/Publicize 
Over the next several years, Tylenol was effectively priced and advertised to become the most popular over-the-counter pain medicine in the nation.

Johnson and Johnson’s conscientious, straightforward, values-driven action, coupled with its ability to negotiate the new context posed by the threat of product tampering, resulted in an amazing product rebound less than a year later.

0 Comments



Leave a Reply.

    3-D Strategy Blogs in 333 Words or Less

    The 3-D Strategy & Innovation Blog is designed to give you tools to achieve productive culture that negotiates every context to overcomes challenges.

    Picture

    Archives

    February 2012
    January 2012
    December 2011
    October 2011
    July 2011

    RSS Feed

    Categories

    All
    86 Coupe
    Albert Einstein
    Balancing The Federal Budget
    Bank Bailouts
    Business Agreements
    Consumer Demand
    Creativity
    Credit Crunch
    Customer Service
    Debt To Income Ratio
    Deficit
    Economy
    Excuses
    Leadership
    Leading Innovation
    Making Deals
    Marketing
    Meeting Customer Needs
    Negotiation
    New Products
    Obama Administration
    Paying Off Debt
    Prius
    Problem Solving
    Relevance In The Marketplace
    Sales
    Solyndra Bankruptcy
    Solyndra Scandal
    Stimulus
    The Five R Product Rebound Model
    Three-Dimensional Leadership
    Toyota
    Toyota Culture
    Toyota Recalls Company Culture
    Triple-C Synergy
    Two-dimensional Leadership

    Earl Wallace

     is available to consult, come to your organization or meet with your leaders via conference calls and web-based meeting forums.


    3-D MRC
    Blog Index

    1. Leadership Blog focuses on making you a 3-D Leader 
    2. Organizational Relations & Behavior Blog focuses on helping you achieve great team behaviors
    3. Business Strategy & Innovation Blog gives you the tools to achieve productive culture
    4. Church & Non-Profit Blog helps your organization achieve great mission focus, team behaviors & organizational processes 
    5. Education Blog focuses on helping you achieve your educational mission
    6. Government Leadership Blog is aimed at improving government leadership at all levels
    7. Leadership to Renew America's values
Powered by Create your own unique website with customizable templates.