Summary
1. Leadership: Decision Making Looks Rusty! 2. Operational-Excellence: Not hitting on all 8! 3. Distribution: Out of Alignment!
Analysis
The American automobile ... is it analogous to the too often observed, business model in the U.S.?
How can we kindly and objectively identify the automobile industry in the U.S.?
* Forecasting: After it rains, umbrellas are ordered; ground delivery.
* Distribution: Drive by a dealership, how different does the "core" look than decades ago?
* Talent: What percent of the top 35% of the workforce talent are in the industry?
* Open-minded: If it breaks consistently, we'll have our talent look at it.
* Fiduciary Responsibility: Poor decisions + Operational deficiencies = threat to workers, family and community!
Harsh? GM's losses have been $51B over the last 3 years!
We can and need to do better!
Interestingly, three different manufacturers that I engaged in business conversations, ended with the following open-minded results:
1. The owner pounded his fist on his desk, literally, and told me he would not have his Sales teams work in an integrated, customer-centric manner with the Service team. (30 year veteran)
2. "We often have clients ask us for tires and other accessories, but we don’t sell those types of accessories." (3rd generation family Gen. Mgr.)
3. "You seem pretty sharp, how do I know you're not going to do a great job working with us and then take my job?" (Gen. Mgr.)
Overall, I submit three potential initiatives to jumpstart Detroit's progress:
1. Talent: Similar to the annual Financial Audit, for the benefit of retirees, current employees and potentially new employees, take a brutally honest, unbiased audit from an outside firm. Implement systematic talent enhancements (systematic vs. trend du-jour).
2. Operational-Excellence: There are so many operational issues. This is like a stampede of angry bulls coming right at you. Grab the biggest, badest and bravest bull by the horns and turn it into steak. Next, next, next! Tough job, but failure must not be an option.
3. Segmentation: Create an industry best, sophisticated segmentation model that fluidly incorporates distribution, clients and factory optimization.
Tough job? Absolutely!
Can it be done? History says "no", unless the approach changes!
Can they do better? The choice, as always, is theirs to make each and every day!
Choose wisely; many people are depending on you!
Appreciatively, Jim Roncevich
