Summary:

Toyota gained market share in the automotive market by focusing on quality – this was their strategic competency.  This single-minded concentration on quality built trust with consumers worldwide, a trust that has been shaken by a recent recall of millions of Toyota vehicles.

The recent recall shows how Toyota’s loss of focus on quality has severely damaged the trust that had been built up over decades.  The cost of the recall will be millions of dollars in the short-term, but the loss of future sales and its reputation is incalculable.

Before Toyota set their sights on becoming the world’s largest automobile manufacturer, they mentored their engineers for 10 years so they became fully imbued in the quality culture and focus on detail that was Toyota’s primary focus.  As their strategic focus changed from high quality to “biggest”, they hired many new engineers globally and spent far less time analyzing consumer complaints.

Article Quote:

“When you lose sight of your strategic competency, the very differentiator that gives you your competitive advantage, you will damage your reputation in the market.”

Link: http://www.cssp.com/strategicplanning/blog/?p=563

Commitment to the strategic competency that differentiates a company from others, even as growth occurs, will help keep the company shielded from the kind of disaster currently happening at Toyota. This means that you must have plans to ensure your intellectual capital (strategic competency) grows at the same pace as your sales growth.

For more on strategic planning, seehttp://www.performancesolutionstech.com/category/strategicplanning/