Impact Today™
Tuesday, December 2, 2008
GM: Killing Sacred Cows
Today America’s automakers are scheduled to be in Washington to plead their case for a bridge loan they believe vital to the future of America’s manufacturing heritage.
Since their unsuccessful first attempt at securing financing, the auto makers have regrouped. The day before thanksgiving General Motors floated a boat concerning the sinking of the Pontiac name plate. This sent a clear signal to Wall Street that automakers are taking a serious look at the future. On the Friday after Thanksgiving, Ford and GM stocks skyrocketed by twenty and ten percent respectively.
By signaling a possible end to the Pontiac Motor Division GM has sent a shout out that sacred cows are up for sacrifice.
It is not easy for a business to end an entire product line, particularly one as long running as Pontiac. Each product and product line becomes the equivalent of a child to the company to whom the product belongs.
However times changes and so should business strategy. Today’s automotive environment adds significant costs for each model. By eliminating Pontiac, GM will come closer to a good (Chevy), Better (Buick), and best (Cadillac) business model, with GMC for the truck market and Saturn for some unknown market.
Although eliminating a single product may not be the entire solution, every business must develop a practice of analyzing their product and service offerings in order to maintain viability.
Today America’s automakers are scheduled to be in Washington to plead their case for a bridge loan they believe vital to the future of America’s manufacturing heritage.Since their unsuccessful first attempt at securing financing, the auto makers have regrouped. The day before thanksgiving General Motors floated a boat concerning the sinking of the Pontiac name plate. This sent a clear signal to Wall Street that automakers are taking a serious look at the future. On the Friday after Thanksgiving, Ford and GM stocks skyrocketed by twenty and ten percent respectively.
By signaling a possible end to the Pontiac Motor Division GM has sent a shout out that sacred cows are up for sacrifice.
It is not easy for a business to end an entire product line, particularly one as long running as Pontiac. Each product and product line becomes the equivalent of a child to the company to whom the product belongs.
However times changes and so should business strategy. Today’s automotive environment adds significant costs for each model. By eliminating Pontiac, GM will come closer to a good (Chevy), Better (Buick), and best (Cadillac) business model, with GMC for the truck market and Saturn for some unknown market.
Although eliminating a single product may not be the entire solution, every business must develop a practice of analyzing their product and service offerings in order to maintain viability.
Labels: Corporate_culture, Strategy
¶ 12/02/2008 0 Comments Links to this post
Monday, November 17, 2008
The rowing teams
Company culture is important to the way challenges are handled. In a nearby town two fierce competitors challenged each other to a rowing race.
One company’s, TradMan, had a traditional management culture. They met many times during the week before the race to determine how the rowers should row, the position at which rowers would hold their paddles, the angle at which rowers should sit, and every other conceivable aspect they could manage.
The other company, New Style, followed a more contemporary management structure. They discussed the race a few times, but refused to let it interfere with their normal work.
On Race Day, TradMan’s canoe glistened in the morning sun. Five Helmsmen took to the boat to ensure the techniques they had discussed in their meetings were followed properly. Four rowers took their positions, two on each side.
New Style’s boat looked equally as good, but only one Helmsman guided their rowers.
New Style won handily.
The next day TradMan’s managers gathered to discuss what went wrong before deciding whether or not to challenge a rematch.
They decided to make one change and issue an immediate rematch challenge for the following weekend.
To find out what they would do differently, click here.
Company culture is important to the way challenges are handled. In a nearby town two fierce competitors challenged each other to a rowing race.One company’s, TradMan, had a traditional management culture. They met many times during the week before the race to determine how the rowers should row, the position at which rowers would hold their paddles, the angle at which rowers should sit, and every other conceivable aspect they could manage.
The other company, New Style, followed a more contemporary management structure. They discussed the race a few times, but refused to let it interfere with their normal work.
On Race Day, TradMan’s canoe glistened in the morning sun. Five Helmsmen took to the boat to ensure the techniques they had discussed in their meetings were followed properly. Four rowers took their positions, two on each side.
New Style’s boat looked equally as good, but only one Helmsman guided their rowers.
New Style won handily.
The next day TradMan’s managers gathered to discuss what went wrong before deciding whether or not to challenge a rematch.
They decided to make one change and issue an immediate rematch challenge for the following weekend.
To find out what they would do differently, click here.
Labels: Anecdote, Corporate_culture
¶ 11/17/2008 0 Comments Links to this post
Tuesday, September 16, 2008
10 reasons companies are not successful
Those working on the front lines of a company are generally thought to have outstanding insight into the problems of a company. Recently the Saratoga Institute conducted a survey to find the top 10 reasons employees feel their company does poorly:
Those working on the front lines of a company are generally thought to have outstanding insight into the problems of a company. Recently the Saratoga Institute conducted a survey to find the top 10 reasons employees feel their company does poorly:- Lack of career growth
- Poor management
- Poor communication
- Pay: paid under-market
- Lack of recognition
- Poor senior leadership
- Lack of training
- Excessive workload
- Lack of tools and resources
- Lack of teamwork
Labels: Corporate_culture, Survey
¶ 9/16/2008 0 Comments Links to this post
Thursday, August 28, 2008
The micro-managing boss
Nobody likes working for a boss that micromanages. Do the actions of the boss in this video resemble actions by your boss that aggravate you? Perhaps they are actions you have been guilty of when working with peers or subordinates. In any case, there is much to learn from this video.
Labels: Corporate_culture, Leadership, Motivation, Video
¶ 8/28/2008 0 Comments Links to this post
Wednesday, July 9, 2008
First it was cheap junk, now its energy efficiency
You absolutely have to admire the Japanese for being ahead of the curve. Fifty years ago when the global marketplace was first forming, Japan captured a large segment of the borderless economy by producing inexpensive items at a rapid pace. Then they spotted an emerging global interest in technology and developed some of the most advanced products possible. At the same time they saw a global need for quality inexpensive cars and answered that call, too. With world-respected corporations like Toshiba, Sony, and Toyota the Japanese have marveled the world.
Now comes the next trend, green and guess what. The world once again is turning to the creativity and ingenuity of the small but powerful island nation. They have created a commercial complex in Chiba that generates it’s power from transparent solar panels imbedded in the building’s windows. They discovered a way to harness the heat from the waste of the Taiheiyo Cement Factory in Kumagaya to make generate the factory’s own electricity. And the list of accomplishments goes on.
Engineers from around the world are traveling to Japan to see the marvels the inventive Japanese culture has now introduced to the world.
You absolutely have to admire the Japanese for being ahead of the curve. Fifty years ago when the global marketplace was first forming, Japan captured a large segment of the borderless economy by producing inexpensive items at a rapid pace. Then they spotted an emerging global interest in technology and developed some of the most advanced products possible. At the same time they saw a global need for quality inexpensive cars and answered that call, too. With world-respected corporations like Toshiba, Sony, and Toyota the Japanese have marveled the world.Now comes the next trend, green and guess what. The world once again is turning to the creativity and ingenuity of the small but powerful island nation. They have created a commercial complex in Chiba that generates it’s power from transparent solar panels imbedded in the building’s windows. They discovered a way to harness the heat from the waste of the Taiheiyo Cement Factory in Kumagaya to make generate the factory’s own electricity. And the list of accomplishments goes on.
Engineers from around the world are traveling to Japan to see the marvels the inventive Japanese culture has now introduced to the world.
Labels: Corporate_culture, Creativity, Strategy
¶ 7/09/2008 0 Comments Links to this post
Thursday, June 5, 2008
He was good, they wanted great
The Detroit Pistons fired head coach Flip Saunders in the third year of his four year contract. Some may wonder why, after all he averaged 59 wins per season, which was third best in the league for the period – and most consistent. Each year his team made it all the way to the conference finals – quite an accomplishment considering 26 teams in the conference did not even make it to the finals once during the period.
Although this is a good record, it fell short of the great record the Pistons wanted. You see, even though he made it to the finals, his team was eliminated each year in game number 6.
Jim Collins wrote that the biggest enemy of greatness is being good. After 3 years of absolute consistency Pistons management has determined that Flip is stuck on good. They also know that “good” does not win championships or build dynasties.
What about your organization? Do you measure what matters so you can improve where it counts? Do not become complacent with being good. You need to and can find great!
The Detroit Pistons fired head coach Flip Saunders in the third year of his four year contract. Some may wonder why, after all he averaged 59 wins per season, which was third best in the league for the period – and most consistent. Each year his team made it all the way to the conference finals – quite an accomplishment considering 26 teams in the conference did not even make it to the finals once during the period.Although this is a good record, it fell short of the great record the Pistons wanted. You see, even though he made it to the finals, his team was eliminated each year in game number 6.
Jim Collins wrote that the biggest enemy of greatness is being good. After 3 years of absolute consistency Pistons management has determined that Flip is stuck on good. They also know that “good” does not win championships or build dynasties.
What about your organization? Do you measure what matters so you can improve where it counts? Do not become complacent with being good. You need to and can find great!
Labels: Corporate_culture
¶ 6/05/2008 0 Comments Links to this post
Sunday, April 27, 2008
Industrial leadership beliefs
When the United States and Canada entered the Industrial Revolution over a century ago managers were required to develop a style wherein former farmers could work in factories. They developed “Scientific Leadership”, which proved to be extremely successful in their environment.
Now more commonly referred to as “traditional” or “industrial” leadership, many organizations still follow its concepts. A recent study by a large mid-western university found disengaged employees are often in environments where the four tenants of Industrial leadership are used. Here they are:
When the United States and Canada entered the Industrial Revolution over a century ago managers were required to develop a style wherein former farmers could work in factories. They developed “Scientific Leadership”, which proved to be extremely successful in their environment.Now more commonly referred to as “traditional” or “industrial” leadership, many organizations still follow its concepts. A recent study by a large mid-western university found disengaged employees are often in environments where the four tenants of Industrial leadership are used. Here they are:
- Leadership is an individual possession
- Leadership is positional
- Leadership possesses particular qualities and skills
- Leaders act from internal motivations
Are these your beliefs?
Labels: Corporate_culture, Leadership
¶ 4/27/2008 0 Comments Links to this post
Thursday, April 3, 2008
A sicker workplace?
A recent survey shows that an overwhelming 83% of employees say they go to work – even if they are sick!
The survey by ComPsych of Chicago shows a sharp increase since 2005 when only 77% of employees said the same.
Corporate culture is a contributor as employees go to work when sick because:
A recent survey shows that an overwhelming 83% of employees say they go to work – even if they are sick!The survey by ComPsych of Chicago shows a sharp increase since 2005 when only 77% of employees said the same.
Corporate culture is a contributor as employees go to work when sick because:
- they feel an obligation to their employer,
- do not have paid sick-time available, or
- they want to save sick-time so it will be turned into an unused sick-time check at the end of the year.
Labels: Corporate_culture, Survey
¶ 4/03/2008 0 Comments Links to this post
Monday, March 3, 2008
Corporate Culture: Why are they so hard to change?
Researchers at Ohio State University have concluded a study of 286 businesses that were spun off from the parent company between 1980 and 2005. Looking at 10 policy areas, they found a remarkable connection to the policies of the company from which they were spun off.
This further exemplifies the difficulty with which culture can be changed. Corporate cultures are well ingrained at all levels of an organization. New people to an organization they complain about certain elements of a culture, but once they start to follow the accepted culture of the organization they begin to find success. The more they follow the culture, success continues.
When they reach the upper levels of the organization, any proposed change to the culture is a threat – why would they want to change a culture that made them successful?
So how do you change the corporate culture?
Actually there are two ways that cultures can be successfully changed.
Researchers at Ohio State University have concluded a study of 286 businesses that were spun off from the parent company between 1980 and 2005. Looking at 10 policy areas, they found a remarkable connection to the policies of the company from which they were spun off.This further exemplifies the difficulty with which culture can be changed. Corporate cultures are well ingrained at all levels of an organization. New people to an organization they complain about certain elements of a culture, but once they start to follow the accepted culture of the organization they begin to find success. The more they follow the culture, success continues.
When they reach the upper levels of the organization, any proposed change to the culture is a threat – why would they want to change a culture that made them successful?
So how do you change the corporate culture?
Actually there are two ways that cultures can be successfully changed.
- From entry-level up. Most experts will tell you that this is impossible. They are incorrect. Cultures have been change from the ground up when the culture has been so oppressive a mutiny occurs. Workers at the lowest level of the organization can create a culture that slowly passes up. It is a very difficult and very rare process, one that is not recommended.
- From the top down. To be successful in changing a corporate culture, it has to be sponsored by the highest levels of an organization. Sponsorship does not mean approval – it means participation. Unless the top levels of the organization truly want change, it will not happen.
Labels: Change, Corporate_culture
¶ 3/03/2008 0 Comments Links to this post
