Showing posts with label Ford. Show all posts
Showing posts with label Ford. Show all posts

November 18, 2012

When All Is Not Green




Are their programs successful or not, is everything okay on their staff, will they--without fudging the numbers--meet their performance goals and targets (if they have any), and so on. 

People are afraid if they made a mistake or something isn't working as intended that they will be in trouble.  

Maybe they will be yelled at, lose authority and power, be sidelined, demoted, or even fired; and their organizations may be downsized, outsourced, consolidated with another, or outright eliminated. 

So people hide the facts and the truth--as if, what they don't know, can't harm me.

So everything appears copasetic in organization-land!

But the truth is we need a solid guidepost to know where we are going, which paths are safe, and which are fraught with danger--and that is anchored in open and honest communication. 

There is a great story about this in Bloomberg BusinessWeek (15 November 2012) about how in 2006, when ex-Boeing executive, Alan Mulally took over as CEO of Ford--and Ford was bleeding red ink, facing their largest loss for automobiles in history of $17 billion, that at the executive Thursday morning meetings, the performance scorecard for their initiatives "was a sea of green."

Here the company is bordering on financial collapse, but the executives are reporting--all clear!

The story goes that Mark Fields, head of Ford's North American business stepped up and showed the first red revealing a problem with a problem tailgate latch on their new Edge SVU that would halt production. 

With the room filled with tension, Alan Mulally rather than get mad and castigate or punish the executive, what did he do--he clapped!

Mulally said: "Great visibility. Is there anything we can do to help you?"

And what ultimately happened to Mark Fields, the executive who told the truth about problems in his area of responsibility?  

Last month, "Ford's board elevated him to chief operating officer," which analysts read as a sign that he will be the next CEO when Mulally is supposed to retire at the end of 2014.

The bottom line is that we cannot fix problems if we can't identify them and face up to them with our people. 

While we need good data and sound analysis to identify problems in the organization, problems will remain illusive without the trust, candor, and teamwork to ultimately come to terms with them and solve them.

I love this story about Ford and think it is a model for us in leadership, communication, and performance management. ;-)

(Source Photo: Andy Blumenthal)

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June 20, 2009

Who Says Car Companies Can't See?


Check out the concept for the new "Local Motors" car company:

  • "Vote for the designs you want. If you are a designer, you can upload your own. Either way, you help choose which designs are developed and built by the Local Motors community. Vote for competition designs, Checkup critiques, or portfolio designs.
  • Open Development, sort of like open source. Once there is enough support for any single design, Local Motors will develop it openly. That means that you not only choose which designs you want to drive, you get to help develop them - every step of the way.
  • Choose the Locale During the development process, help choose where the design should be made available. Local Motors is not a big car company, we are Local. The community chooses car designs with local regions in mind; where will this design fit best? You tell us. We make it happen.
  • Build your Local Motors vehicle Then, once the design and engineering is fully developed you can go to the Local Motors Micro-Factory and build your own - with our help, of course. See the "Buy" page for purchase and Build Experience details.
  • Drive your Local Motors car, the one you helped design and build, home."

I like this user-centric approach to car design and development. This is how we really put the user in the driver's seat.

The is the type of opportunity where we go from Henry Ford's one car for the masses approach to a more localized implementation.

While I don't know the specific economics of this approach for a car company, it seems like it has bottom-line potential since they will only proceed with car development once they have enough demand identified.

Why build cars that no one wants or likes and why pay for internal design and market research studies, when people will willingly participate for free in order to get what they really want?

Finally, this is a terrific example of open source development and crowdsourcing--getting the masses to contribute and making something better and better over time. More minds to the task, more productivity and quality as a result.


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May 1, 2008

“Glocalization” and Enterprise Architecture

Glocal is a combination of the words global and local. It is a best practice in business where organizations conducts business operations globally, but tailor their offerings to meet local tastes and needs.

Essentially doing business glocally means that you are architecting your business to perform operations both effectively and efficiently—i.e. your business is doing the right thing by growing without geopolitical constraints and you’re doing it the right way, by being sensitive to the customers’ specific needs wherever they are located.

The Wall Street Journal, 1 May 2008, reports that “Kraft became the No. 1 biscuit maker in China by tailoring the Oreo to local tastes.”

“The Oreo has long been the top-selling cookie in the U.S. Market. But Kraft Foods, Inc. had to reinvent the Oreo to make it sell well in the world’s most populous nation.”

“Unlike its iconic American counterpart, the Oreo sold in China is frequently long, thin, four-layered and coated in chocolate. But both kinds of cookies have one thing in common: They are now best sellers.”

40% of Kraft’s revenue is internationally-based, so their strategy to go glocal is critical to improving their market share and profitability.

To increase growth at Kraft, the CEO “has been putting more power in the hands of Kraft’s various business units around the globe, telling employees that decisions about Kraft products shouldn’t all be made by the people at the Northfield, Ill. headquarters.”

Similarly, to market the Chinese Oreo’s, one of innovative things Kraft did was to have Chinese university students ride around on bicycles outfitted with wheel covers resembling Oreos and handing out cookies.

The CEO stated this was “a stroke of genius that only could have come from local managers. The more opportunity our local managers have to deal with local conditions will be a source of competitive advantage for us.”

Glocalization, the customization to local markets, is far removed from the original Ford Model T (the most influential car of the twentieth century according to Wikipedia) set in 1908 that was based on standardization and assembly-line production, rather than individually hand-crafted.

From an enterprise architecture perspective, going glocal and customizing (or tailoring) business products and services to local tastes is also quite the opposite of what most enterprise architects try to do, which is to standardize their products and services to increase interoperability, simplify the infrastructure and operations, and achieve cost-efficiencies.

So what is more important, standardization or customization?

I suppose it depends on your perspective. If you’re in operations, then standardization is the dominant factor in order to streamline business processes and achieve cost-efficiencies. However, if you’re in sales and marketing, then customization is key to market penetration and customer satisfaction.

This leads me to the role of the enterprise architect, which is to balance the conflicting needs of the organization and simultaneously drive standardization in business processes and technologies, but customization to local requirements for sales and marketing. So EA serves Oreos to everyone!


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