Value Creation

Creating sustainable value? The shared prosperity of 1950’s and 1960’s overshadowed the shortcomings that Marvin Bower and Peter Drucker observed. Thereafter, the clash of financial market cultures expanded disinvestment and the emergence of limited prosperity exacerbating the business status quo. Therefore, in their 1994 BBC interviews, Marvin Bower and Peter Drucker expressed frustration with this static business status quo. In short, collective effort contributes to long-term business success turning a business into a successful growing learning enterprise. For instance, classic philosophies of Socrates, Plato; St. Augustine expressed broader purposeful views of rhetorical persuasion than teleology. The 20th century codification of Frederick Winslow Taylor efficiency at all costs reinforced the hierarchical colonial caste systems of debt and capital. For example, the 1939 slogan ‘What is good for General Motors is good for America’ is eventually challenged by Ralph Nader’s 1996 book     Unsafe At Any Speed    . Safer automobiles can be produced at a profit.                                                                                                                                                                           By 1980 General Motors was one of the world’s largest corporations. In contrast, some feel that if the lessons of the NUMMIE commandoes had been implemented companywide throughout General Motors it would have prevented bankruptcy. New United Motor Manufacturing (NUMMI) was an automobile joint venture owned by General Motors and Toyota. Originally General Motors saw the joint venture as an opportunity to learn lean manufacturing techniques, while Toyota saw an opportunity to implement their production system in the United States. General Motors sent gross of employees to Japan to learn the techniques of lean manufacturing. Those employees enthusiastically returned producing 6,000 quality vehicles per week from 1984 to 2010. But, the financial clash of market cultures increased market risk, speculation and volatility eventually affecting General Motors and Toyota. Simultaneously, General Motors ignored the managerial-leader level employees that were sent to Japan maintaining their top-down-command-and-control structure of the past. Instead General Motors bet on computers, technology and managerial finance.                                                                                                                                                                                                   In contrast, The Ford Motor Company sought out, followed and implemented the continuous quality improvement teachings of W. Edward Deming. Deming preached better product design to improve service, uniform higher-level product quality improved research product testing, plus greater sales through global markets beyond plan-do-study-act. Dr. Deming told the management of The Ford Motor Company that they were responsible for the majority of problems. For the first time since the 11920’s in sixty years in the year 1986 The Ford Motor Company became the most profitable American automobile company. During the 2008 financial crisis The Ford Motor Company maintained profitability, while General Motors experienced an orderly bankruptcy.                                                                                                                                                                                                                   Management is dead, how are you creating sustainable value?