Why William Clay Ford, Jr. Failed
In October 2006, the Ford Motor Company replaced William Clay Ford, Jr. as its Chief Executive Officer. Why did Mr. Ford fail? His own words, reported by Micheline Maynard of the New York Times on July 16, 2006, titled “Is Ford Running On Empty” revealed the answer. “I bowed to managers on what I knew were product development mistakes”. “I can’t delegate to anybody…dealing with unyielding managers that stymie and condescend... Read More
Mitt Romney Advises: “Let Detroit Go Bankrupt”
Governor Mitt Romney offers some interesting advice regarding the Big Three in his November 18, 2008 New York Times Op-Ed “Let Detroit Go Bankrupt” summarized as follows: “If General Motors, Ford and Chrysler get the bailout that their chief executives asked for yesterday, you can kiss the American automotive industry goodbye. It won’t go overnight, but its demise will be virtually guaranteed. Without that bailout, Detroit will need to drastically... Read More
What Is The Fate of General Motors, Ford and Chrysler?
General Motors, Ford and Chrysler may have to enter into Bankruptcy to reduce their hourly cost of labor. Running out of cash may be the trigger that puts one or all of them into bankruptcy, but it will be a blessing in disguise. One of their most significant problems is that their hourly labor costs are reportedly $20 to $30 per hour higher than their Japanese competitors. Some of the differential will be reduced with the UAW’s assumption of... Read More
Kinko’s. Was it Damaged?
Claudia H. Deutsch of the NY Times reported on Clayton, Dubilier & Rice’s management of Kinko’s on May 5th 2007 with an article titled “Paper Jam At FedEx Kinko’s”. One quote referring to the culture change: “Some say Clayton, Dubilier massacred Kinko’s, and that FedEx can never repair the damage.” On March 8, 2008 the New York Times reported again on the issue, “…the unit has underperformed since FedEx bought... Read More
A Helpful History Book for CEOs
I came across an impressive book, which would be very helpful to any CEO. It is an interesting historical effort and was referenced in a footnote of a best selling business book “Good to Great”. It proved to be a better book on management in my opinion, than the popular business publication. Barbara Tuchman wrote “The March of Folly”. In the work, she reviews four historical debacles. The reasons for these past failures, was primarily... Read More