May 23, 2010 | Alliance management, Innovation, Leadership, Operations, Strategy
The momentum of innovation in the auto industry has picked up a notch, as a resurgent Toyota allies with Tesla to re-open the NUMMI plant closed earlier this year to produce a mass market electric car.
Toyota got the ball rolling 10 years ago with the Prius, and still leads by a mile in the eco car market, but the competition is emerging. This alliance with Tesla in the plant where Toyota allied with GM for its first plant outside Japan, demonstrating comprehensively that the quality of Japanese cars was not a function of some cultural phenomena peculiar to Japan, but simply a function of good management (a lesson GM never really got) may be just as significant.
It is reassuring to those of us who have watched Toyota transform the manufacturing mentality of the world over the last 30 years with their development and wide sharing of TPS, that after the recent stumble over quality, a stumble some predicted as the Toyota juggernaught seemed to be taking over the auto world, that they have been able to embrace the alliance, and return to the basic values that made them great.
With luck, they will be as open about the engineering and operational evolution of the JV electric car, and the lessons they learn from the alliance with Tesla, as they have been in the past. If so we will all learn a whole lot more.
May 19, 2010 | Leadership, Management, Strategy
One of the best leading indicators of commercial activity I know is the level of activity at 6.30am late in the trading week at the Flemington markets in Sydney. Whilst it is entirely qualitative, and covers retail activity in a single category, fresh produce, over a long period of observation it has nevertheless been a pretty potent macro forecasting mechanism.
Over the past few weeks I have been out there on a number of occasions, in the critical early hours. The standholders are all sounding worried, their sales are down, and the competition for the sales that are there is fierce, and there is even no real problem getting a park, and wheeling around a barrow.
You can show me all the macro economic models, spreadsheets, and learned forecasts you like, but none have the immediacy, intimacy, and sensitivity as a bit of time at the coal face.
My FMFM (Flemington Markets Forecast Model) developed view, is that we are in for a really tough time. In 6 months, coincidently when we are likely to be in the agonies of another federal election campaign, I will come back to this post, and see again, if the FMFM model is better than all the gumph spin, misinformation, and hubris coming out of our “leaders” in Canberra.
May 17, 2010 | Communication, Leadership, Management, Personal Rant
I watched Q&A last night, in the ultimately vain hope of getting some intelligent debate on the Federal budget, and its foundation proposal to change the manner in which the mining industry is taxed.
Should have known better.
What passed for debate was really just a moderated annunciation of political hyperbole and PR crafted phrases intended to play to the emotions, there was little presentation of the facts. How are we to form intelligent positions on issues where all we see is the spin? Are we the electorate, expected to be so compliant and thoughtless that we just accept the nonsense from whichever side of the political divide best suits our generic position.
There are strong arguments on both sides, lets hear them in a way that enables us to make a decision on how we feel, rather than being told how we should feel on the basis of spin.
Increasingly businesses I see are making real efforts to remove the verbiage, and present facts without the gloss and polish as a means to make sensible decisions, and engage the stakeholders in the process to the extent that even if they do not agree with the outcome, they are satisfied that there was due process, and therefore they can live with the outcome.
If our two “debaters” last night were sitting around the board table of anything more significant than the local tennis club, and expecting to get support for their respective positions, the chairman would be well within his rights to send them to the corner to share the pointed cap.
May 12, 2010 | Alliance management, Demand chains, Leadership, Operations
Successful groups have great power, power to identify, understand the causes and implications of problems and opportunities, and come up with creative responses, and once moving can gather great momentum. Most workplaces are now actively seeking to harness the intellect and creative power of their employees and other stakeholders, and those that do it well create great opportunity.
The flip side is that groups also have inertia, they are much harder to get rolling than just an individual, and once rolling, have a tendency to take unpredictable excursions.
It is easy to underestimate the effort, leadership, and capacity to connect that is required to overcome this inertia, and to manage the momentum constructively, leading a group in a consistent direction, focusing on the important issues, and consistently delivering outcomes.
I bet Isaac never thought of this application of his laws.
May 11, 2010 | Alliance management, Demand chains, Leadership
When people are tied together, when they are in “communities” they tend to develop shared values, aspirations, and courses of action. The incidence of double dealing, dishonesty, personal gain at the expense of the community gain, are reduced.
An efficient demand chain is just another type of community, it benefits from the collaboration, is able to identify and filter out self interest and hubris, and can deliver value to all participants.
The oxygen of such a community is information, both the quantitative data that can be collected and shared, but perhaps more importantly, the qualitative stuff that accrues with use, personal relationships, shared obligations, the mutual understanding of peoples idiosyncrasies, and simply the need to be recognised.
May 3, 2010 | Change, Innovation, Management, Strategy
All species, including humans, are inherently adaptive, yet the organisations humans inhabit are by their nature resistant to change.
The management challenge of the future is to figure out how to build an organisation that evolves sufficiently quickly to be ahead of the changes occurring in the environment around them so as to be in a position to exploit and leverage those changes rather than just reacting to them.
