Adapt or die...PLEASE!

I wouldn't consider myself Darwinian, but the environment, world, economy, culture - everything has changed. Yet, some institutions and the individuals that run them refuse to adapt and expect entities around them to help them survive.

Case in point: General Motors

They built cars that weren't selling well for years; maintained multiple brands and products that were only slightly differentiated (things like "the bumpers on the Plymouth slope more than the Chevrolet!) and now they want MORE MONEY to stave off bankruptcy.

Here's an alternative:

Use additional bail-out money to provide pensions and healthcare to the thousands of retirees GM let hang in the wind this fall and force GM into bankruptcy.

Sorry, the arguments we're hearing from GM now are just slightly different from their arguments in the mid-70s to 80s when the "Japanese invaded" the car industry. Increased global competition, rising costs, line workers cost too much and shareholder value is gone -- same tune from clueless professional executives, not management interested in guiding a company through a storm.

It's easy to pick on the auto industry and the fall out to the many companies dependant on the auto "jugger-nut" through contract, supply chain, etc. is going to be hard but consider this.

The auto industry did everything possible to own all aspects of its business WITHOUT really taking the risk. For example, tool and die shops build key components but don't own the tools the auto company contracting owns the tools - that way, they can slow payments, cripple the T&D operation, then pulled their tools because "the shop is financially unstable" WHAT?

That is really taking "work for hire" to an extraordinary level.

Control requires shared risk. $1 salaries are nice gestures, but they should receive no compensation if the company is not profitable -- just like the millions of entrepeneurs in millions of companies all over the world. This challenge requires new thinking - ADAPT. Adaptation may require a new skin, new home, new - uncomfortable - approach, but it can save a dying breed - like GM.

Play ball boys, you may just hit a homerun or have to find another job, like the thousands of workers already on the streets. Hell, I'll even throw out the first pitch, really for free.

Financial Meltdown

How can you fail completely, but still succeed? Join Wall Street.

Over the past 15 years, significant portions of Wall Street have been automated, removing commissions and changing the way Wall Street is doing business. Right? No. Unlike the auto business or a myriad of other businesses that have adapted, Wall Street did not adapt. Wall Street took greater risk. "Greed is good" the motto for the fictitious 1980s Wall Street tycoon, Gordon Gecko, was not just a great movie line for Trivial Pursuit, but a business model for the Wall Street of the new Millenium.

And now it is over, but over for whom? Over for the American middle class -- hard work does not equal security in today's America -- don't plan, don't sacrifice -- greed is good. live beyond your means. thousands for kids' birthday party, no problem. get a mortgage you can pay? no worries, just refinance when it comes due. Kick the can down the road -- debt, environmental destruction, self absorbtion, lack of compassion -- tomorrow doesn't matter.

Tomorrow DOES matter. What kind of America do you want to live in? Debt-ladden and struggling or compassionate and innovative and dedicated to making a difference?

Cast your vote, make a change and make a difference. Oh, and Wall Street? Adapt or die!

The Auto Business

First, let me start with full disclosure. Ford Motor Company put food in my mouth, a roof over my head and 16 years of education in my mind. My father was a chief engineer in Instrumentation and Design Group at Ford Motor Company on Oakwood Blvd. in Dearborn, Michigan for 28 years. After retirement for heart disease, he continued to buy Ford products, talk about the greatness of this company and celebrate its successes.

As a result, I am a gear head. Time has marched on, but it also seems to have frozen in places like Michigan. I, like the students graduating from Michigan’s great universities today, had to leave the state to get a job. I became a gear head in the technology business of California. Computers, servers, software and chips are my business, but in my heart, I’ve never travelled far from the auto business.

So began the quest of merging the fine products of Detroit and LA with the world outside the pleasant peninsula. Step in the Ford Ride & Drive in Southern California earlier this week.

The mornings pleasantries began with a review of the downturn in the automotive business – there is the potential for as many as 5 million fewer cars could be sold in the U.S this year. But optimism abounds “based on recent data, the consumer is unlikely to whip shaw us like that” said Hal Dewsnap, Ford
Regional Sales Manager, California.

I appreciate the optimism, but the auto business is facing a difficult time. Not only are energy costs skyrocketing, and vehicle requirements, globalization is placing pressure on this business that is unrivalled by any other previous shift. And consumers are driving, NOT the auto executives.

Ford has an outstanding history of producing cars that consumers want and need – they have led the way in fuel efficient vehicles throughout Europe and continue to today. Caution, Ford, consumers are enabled. Consumers know your products from other markets and they want the choice. The challenge is how to build the next generation of auto company – lean enough to lead with great products, understand the global dynamics and consumers next trend.

Something to think about….

Up Next…cool Ford green innovation!