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