Detroit's Big Three: A lesson in Leadership

By Jim Swoboda, Chief Change Nut

The American automotive industry is a LIVE case study in the failure of leadership, time and time again, to recognize fundamental change.

In the 1970's, the entire industry was caught off guard when the Arab Oil Embargo hit and consumers rushed to buy fuel efficient automobiles.

In the 1970's and 1980's, it was the failure to recognize the labor demands which they agreed to in order to avoid work stoppages would result in long term legacy costs that can not be met.

In the 1990's and the early part of this decade, business was strong and the case for change was not as keenly felt and Detroit delivered vehicle that "they" thought consumers wanted.

And now, in a perfect, predictable storm, everything has aligned to hit Detroit, and Michigan, hard. There is no escape this time. While Detroit automakers can take weeks, or months, to convert plants to produce vehicles that are in demand, their competitors can do it in hours.

While legacy costs rise at alarming rates, competitors never got themselves into the contractual agreements that now necessitate major surgery to offer a chance at recovery.

Can they turn it around? ABSOLUTELY! Change and innovation can be Detroit's best friend. Their people can make a difference. They just have to be freed from the constraints of the past.
 

Date: Mon, 10 Nov 2008 13:58:49 EST