“The risks and rewards to organizations of openness are illustrated by recent cases of crisis management run amuck and done well by highly visible corporations. In the 1980’s, Johnson and Johnson created the case study benchmark for crisis management with its handling of the Tylenol product contamination issue. Highly visible leadership and wide-open communication allowed the company to quickly rebuild customer trust in the Tylenol brand” (Patrick F. Bassett)
The Tylenol case created the following long term effects:
- On the part of Johnson and Johnson the manufacturer, they learnt a very expensive lesson of forming detailed guidelines within the organization for crisis management responsibilities and several plans were implemented for the prevention of such occurrences in the future.