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Johnson & Johnson and Crisis Management: Comparison of TwoLeaders in Two Crises

Abstract

Crisis management communications is a critical skill forcorporate leaders. Failure during crisis management may result inserious harm to the company and in some cases can lead to the exitof the firm from the industry. Successful crisis management mayresult in little or no damage to a company’s reputation in theindustry. This case study will review the crisis managementcommunication strategies of two CEOs at different times in a singlecompany’s history.

Leadership in 1982 Crisis

When the Tylenol crisis happened in 1982, Burke directed theremoval of 31 million bottles of Tylenol products valued at morethan $100 million from store shelves (Kaplan). Burke took the leadrole for all communications relating to the crisis. As the CEO, hewas the face and spokesperson for Johnson & Johnson, providingleadership through the crisis. Burke appeared on the U.S.television news program, 60 Minutes, and allowed camerasto be present during strategy sessions (Yang). Burke did notdelegate the responsibility of communication to a companyspokesperson or division head (Prokesch). Multiple case studies,many through Harvard Business School, detail the way Johnson &Johnson and its leaders handled the crisis.

Leadership Now Crisis

Under Weldon, the company recalled more than 50 products duringa 15-month period between 2009 and 2011. The product recallsspanned various subsidiaries, including products such as Motrin,Tylenol, Children’s Tylenol products, Rolaids, and Benadryl fromthe consumer products division of McNeil Consumer Health Care, thesame subsidiary that was so successful with crisis managementduring the 1982 Tylenol crisis. The quality issues were so severe,with potential for adverse effects to the general public, that inJuly 2010 the FDA required action on the part of McNeil to addressthe quality issues at various manufacturing plants. The companysubmitted a remediation plan for McNeil to the FDA, and in March2011 the FDA expanded oversight at three plants for McNeil, due tothe company’s failure to make significant improvements inquality.

Questions Presented:

Compare and contrast the leadership strategies used by Burke andWeldon: What changes could have been made by either CEO to improvethe situation he faced?

Compare and contrast the communication strategies used by Burkeand Weldon. What changes could have been made by either CEO toimprove the situation he faced?

Compare and contrast the crisis management strategies used byJohnson & Johnson in the two situations.