Mattel and Crisis Management

The most recent news on the Mattel toy recall story is the company's apology to China.

Clearly Mattel has serious problems right now. But what I am particularly puzzled about is why such a respected company could permit others to control the story, particularly when the web makes it so easy to get a message out quickly, clearly and directly.

Let's look at just the last several days. On Friday, September 21, Thomas Debrowski, Mattel's head of operations, appeared in China to personally apologize to the country's product safety chief over the recall of Chinese-made toys, pointing out that most of the items were defective because of a Mattel design flaw and not because of a manufacturing problem.

Several media outlets interpreted this move as Mattel's attempt to protect its own fortunes, with ABC saying that the company was trying to patch up its relationship with a country that "makes most of its toys and fattens its profit" and the Washington Post pointing out that the company needs to keep China happy because the toymaker "receives 65 percent of its toys from China and has made significant financial investments in the Asian country."

These reports prompted Mattel to react with a formal statement defending the apology and awkwardly attempting to point out that it was very similar, if not the same, to the apologies that the company had offered in several other markets. Ugh.

So I went to mattel.com expecting the entire home page to be taken over by the company's messaging and statements of caring and action about this situation. I assumed I would see perhaps one-click access to a moment-by-moment updated list of recalled toys, a video statement from the Chairman, further explanation of the company's apology to the Chinese, an invitation to call a 24/7-manned 800# hotline for further information and messages to key stakeholders such as parents and stockholders. Maybe a corporate blog. I didn't really even expect to see all this - I would say I assumed it.

As of September 27, Mattel has chosen to maintain its site in a largely unchanged state. The main section of the well is promotional ("The World's Premier Toy Brands Today and Tomorrow"). Two smaller call-outs link to a recall list last updated September 4, nearly three weeks ago, and the only statement from the Chairman accessible from the home page is Mr. Eckert's Wall Street Journal editorial dated September 11, more than two weeks ago. In perhaps a particular unfortunate moment of judgment, the third of the three call-outs notes that Mattel has been named one of the 100 best corporate citizens of 2007 by Corporate Responsibility Officer magazine.

The first item in a "Mattel in the News" section (IS there any other news?) refers to a new Barbie full-length DVD musical and kick-off event. [NOTE: as an aside, it is possible that Mattel is also damaging the potential of this new product by having it on the home page at a time when visitors are least likely to want to see Mattel promoting new wares.]

So aside from the myriad PR options Mattel management deserves and should have in front of them at this moment... The company is not utilizing the most valuable piece of real estate in the universe right now, mattel.com, to take charge.

Mattel, if you're listening: people want to hear from you. Do not be afraid to speak out. Companies think that taking the high road means staying silent, sticking to their knitting and just fixing the problem. Today, when news, opinion and gossip shoots around the world on the web instantaneously, this is no longer an option. Remember the decades of good faith and trust you've built in the marketplace: these are the very assets that make consumers want to hear from you right now, and the web has made it easier than ever to deliver.

Manage the story, Mattel: don't let the story manage you.