Skip to content

Posts Tagged ‘Chrysler’

Chrysler & its Silent Problems

Sunday, November 1st, 2009

Cash for Clunkers. Automotive Bailouts. Clean Car Technology Investements. Saturn Fails. Everyone knows the domestic automotive industry has been in a turmoil for many years, but I have to wonder, “Is there anyone steering the ship at GM, Toyota, & Chrysler?” I have mentioned repeatedly that GM, Toyota & Chrysler have been huge silent problem sinkholes for years. They’ve had cultures where problems were avoided and their silence embraced. This is a huge challenge in today’s marketplace.

In today’s paper I couldn’t help but read an AP article titled, “Why so quiet Chrysler execs?” Its a silent problem expose at its finest. Here are few of the excerpts.

Chrysler has been sending its dealers back to class, reminding them about the importance of courtesy and communication. Always return phone calls. Limit wait times. Open doors for customers. But the automaker isn’t following its own advice.
Dealers are left to wonder what they’ll be selling this time next year, even as they struggle to unload unpopular models from their lots.
The lack of communication is a symptom of an automaker so focused on its grand plan that it may be overlooking the basics of running the business. The lack of information is compounded by frequent shuffling of managers.
Dealers are impatient for details of Marchionne’s five-year plan - to be announced on Nove. 4. Many say calls to headquarters have gone unreturned…
The silence is a sign that Fiat was unprepared to take over Chrysler, said Aaron Bragman, an auto industry analyst  with IHS Global Insight.

This story simply reinforces what I and many already knew, “Chrysler is in Trouble!” The reason they’re in trouble is multifold, especially the lack of leadership. I however am convinced that a major source of their demise relates to the silent problems that have been allowed to fester and morph and multiply over weeks, months and decades. Silent Problems are the equivalent of the hemlock tonic being passed around and consumed in too many organizations.

The way out of the woods is dfficult. The means to staying out of the woods is to complete a Silent Problem Audit, and begin to address the silent problem issues before they turn into a Without Warning Event.

Bummer of a Birthmark

Friday, July 31st, 2009

Gary Larson, creator of the comic strip “The Far Side” once illustrated 2-deer standing on their hind legs in the woods, with one having a bullseye birthmark on its stomach. The other deer staring at the bullseye states, “Bummer of a birthmark, Hal.”
The other day I was at a medical clinic when the nurse walked into the waiting room and announced that is was “Mr. Madoff’s” turn to see the doctor.  I’m certain it wasn’t “the real famous Mr. Madoff,” since he is currently serving time at a correctional facility in the Carolinas. However, I thought to myself, “Bummer of a birthmark, Mr. Madoff.” This sparked a stream of thoughts as relates to silent problems and birthmarks. For instance:

  • Will GM be able to recreate its once glorious image, or will it be a “Bummer of a birthmark, GM” future?
  • Will Chrysler and its newly announced marriage with Fiat be able to rebuild its image, or once again will it be a “Bummer of a birthmark, Chrysler” future.
  • And how about institutions like Citigroup, AIG, Bank of America and a slew of others that faltered, yet were saved? Will they too be noted for their “birthmark” from the past?

In the past year, thousands of businesses have found unwanted “bullseye birthmarks” attached to their names and their businesses. Many were well deserved, while others were merely situational. Regardless, those with the bullseye birthmark are being closely watched.  And if you’re in one of those situations, there is only one way out. Be squeeky clean and walk the talk. At the very least, you don’t want to be seen as controversial.

Good luck…

GM’s Silent Problem - 30 Years Old & Running

Tuesday, June 9th, 2009

On Jan. 21, 1988, a General Motors executive named Elmer Johnson wrote a brave and prophetic memo. Its main point was contained in this sentence: “We have vastly underestimated how deeply ingrained are the organizational and cultural rigidities that hamper our ability to execute.” from David Brooks in the Quaqmire Ahead at the NYT.

In coming months, a slew of articles, books and case studies will emerge about the ultimate demise of GM and Chysler. These once mighty institutions epitimized US ingenuity and manafucturing capability. They were about design and marketing. They were powerful, and massive institutions. However their fall from greatness is not a lonely chapter. It’s been preceeded by numerous other once mighty instituions. Just look at the original 30 firms that made up the DJIA. How many remain?

Allied Chemical, American Can, American Smelting, American Sugar, American Tobacco B, Atlantic Refining, Bethlehem Steel, Chrysler, General Electric Company, General Motors Corporation, General Railway Signal, Goodrich, International Harvester, International Nickel, Mack Truck, Nash Motors, North American, Paramount Publix, Postum Incorporated, Radio Corporation of America, Sears Roebuck & Company , Standard Oil (N.J.), Texas Company, Texas Gulf Sulphur, Union Carbide, U.S. Steel, Victor Talking Machine, Westinghouse Electric, Woolworth, and Wright Aeronautical.

So it should be of little surprise that GM and Chrysler are underwater today. The primary reason for their failure is spelled out byElmer Johnson’s evaluation. “We have vastly underestimated how deeply ingrained are the organizational and cultural rigidities that hamper our ability to execute.”

For every organization, anything that hampers its ability to execute is huge. It’s like going up to bat knowing the bat you chose is too big, and the likelihood of a strikeout high. As I’ve studied organizations, interacted with leaders and given presentations, I’ve come to realize that silent problems (problems that are avoided, neglected or go unnoticed) are an integral component of how an organization is able to execute. Simply, as the number of silent problems grows inside an organization, the ability of the organization to execute diminishes proportionally. This is why solving silent problems are so important, and integral to the short and long term performance and viability of the organization.

Yes, silent problems were an integral component as to GM & Chrysler’s demise. After all, silent problems eventually become Without Warning Events, which can derail almost any organization for a period of time.

Bottom Line: High performance organizations deal with silent problems when they’re small.

Be the one to see it coming!

The first leadership book to point out the problem, then hand-deliver the solution.

Without Warning - Rondey Johnson

Learn More

Order Info