J&J: Dig Deeper!

The window is closing for Johnson & Johnson to retain realistic hopes of regaining its trusted position with customers. Customers are moving away from the brand and are increasingly finding suitable substitutes.

Today’s New York Times offers an update on what is happening with J&J. But what is most striking to me is how this industry leader still seems unable to get to the heart of the problem. As reported in today’s article:

Those reassurances [by the company that the worst is behind them], however, have been followed by yet more recalls. What is most perplexing is the seeming inability of executives to solve — and satisfactorily explain — the manufacturing issues that dog the company.

As someone focused on culture and values, the issue seems so clear to me: J&J is not digging deep enough to uncover the root causes of the problem.

As reported in the Times, consumers were complaining as early as April 2008 about moldy-smelling Tylenol capsules manufactured at the Las Piedras, Puerto Rico plant. It J&J 18 months to start a recall of the offending products. In January 2010 the FDA sent a warning letter to J&J criticizing the delay in taking action.

My question is whether J&J has ever undertaken a comprehensive assessment of the culture, both at the Puerto Rico facility, as well as within the McNeil Consumer Healthcare division? Does J&J know why employees were hesitant to come forward? Does J&J know what were the pressures that caused leaders to not respond in a manner consistent with J&J’s Credo? It’s one thing to look at flaws in the supply-chain or in production, but that does not get to the people issue. Individuals must have known what was going on, and they didn’t come forward.

This lack of transparency is certainly one of the factors that is inhibiting the ability of J&J to act effectively, and rebuild its reputation. J&J talks about the corrective actions it is taken. But are they putting only a Band-Aid over the problem, or are they actually getting to the root cause of the problem?

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David Gebler is the President of Skout Group, an advisory firm helping global companies use their values to clear the roadblocks to performance. Send your thoughts and feedback to dgebler@skoutgroup.com.