Comments on: Updated: Nardelli to Run Chrysler http://www.leanblog.org/2007/08/flash-nardelli-to-run-chrysler/ Mark Graban's leanblog.org - Lean Healthcare, Lean Thinking, Lean Manufacturing, Toyota Production System Thu, 09 Feb 2012 22:59:58 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Book Review: The Ice Cream Maker — Lean Blog http://www.leanblog.org/2007/08/flash-nardelli-to-run-chrysler/#comment-22854 Book Review: The Ice Cream Maker — Lean Blog Thu, 28 Jul 2011 03:38:40 +0000 http://leanblog.bigbigdesign.net/2007/08/updated-nardelli-to-run-chrysler/#comment-22854 [...] couldn’t believe it. Nardelli, who has the reputation of being an imperial, top-down leader, the man who is blamed for killing [...] [...] couldn’t believe it. Nardelli, who has the reputation of being an imperial, top-down leader, the man who is blamed for killing [...]

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]]> By: Karthik Chandramouli http://www.leanblog.org/2007/08/flash-nardelli-to-run-chrysler/#comment-2373 Karthik Chandramouli Thu, 09 Aug 2007 15:18:00 +0000 http://leanblog.bigbigdesign.net/2007/08/updated-nardelli-to-run-chrysler/#comment-2373 A recent study was published on the impact of Narcissistic CEOs and I think it's a great case study in what Chrysler is about to experience under Nardelli (a textbook narcissist in my humble, non-medical opinion).<br/><br/>A summary of the study can be <a HREF="http://www.post-gazette.com/pg/07196/801603-28.stm<br/>" REL="nofollow">found here</a>.<br/><br/>And the full study can be <a HREF="http://www.google.com/url?sa=t&ct=res&cd=6&url=http%3A%2F%2Fblogs.phillynews.com%2Finquirer%2Fphillyinc%2FNarcissisticCEOs.pdf&ei=ayu7RqPoPKHyiQHl5bDADw&usg=AFQjCNHN5R_QVvnM2iEgUpCa0mtTSrSj9w&sig2=qXitH6vIv_rMCkxOV1iHXQ" REL="nofollow">found here</a><br/><br/><br/>Bottom line -- CEOs who make it all about themselves inevitably fail because they set themselves apart from the rest of the company -- the people who get things done and make execution a reality.<br/><br/>Perhaps Nardelli has learned a lesson from his failures at Home Depot, but I can't imagine that someone so tightly wound up and consumed by proving Jack Welch made the wrong decision can be introspective enough to course-correct.<br/><br/>Hopefully Cerberus can afford a good executive coach who can help Nardelli to steer clear of the ditch.<br/><br/>But more importantly, it's NOT about the CEO. It's the product, stupid. And the quality. And the cost. So Nardelli has a much bigger problem than fighting Lowe's and Wal-Mart.<br/><br/>Nardelli's prior experience does not include a challenge of this magnitude.<br/><br/>Arguably, working at a company like GE is somewhat insulating because they are a self-professed leader in the markets and customers they serve, or they get out of the business.<br/><br/>Sort of a self-fulfilling prophecy... You're only good at what you try to be good at. Has GE ever stayed the course and made a poorly-performing business into a highly-performing one, or do they cut bait before it gets interesting?<br/><br/>Six Sigma ain't gonna cut it against the likes of Toyota and Honda. And the GM Production System has yielded some very competitive plants in terms of productivity and initial quality. Ford's new CEO is a true believer in the power of Lean and I'm confident they will make it a priority.<br/><br/>Here's my prediction -- Nardelli will gravitate towards fixing underperforming dealers and hire some ex-Marines to whip them into shape, like he did with Home Depot. He will squirrel away all his energy and goodwill trying to fight impossibly restrictive state franchise laws, only to find out that his core operational performance is still lacking.<br/><br/>By then, Wolfgang Bernhard will be brought in from the wings to salvage what's left... A recent study was published on the impact of Narcissistic CEOs and I think it’s a great case study in what Chrysler is about to experience under Nardelli (a textbook narcissist in my humble, non-medical opinion).

A summary of the study can be found here

Bottom line — CEOs who make it all about themselves inevitably fail because they set themselves apart from the rest of the company — the people who get things done and make execution a reality.

Perhaps Nardelli has learned a lesson from his failures at Home Depot, but I can’t imagine that someone so tightly wound up and consumed by proving Jack Welch made the wrong decision can be introspective enough to course-correct.

Hopefully Cerberus can afford a good executive coach who can help Nardelli to steer clear of the ditch.

But more importantly, it’s NOT about the CEO. It’s the product, stupid. And the quality. And the cost. So Nardelli has a much bigger problem than fighting Lowe’s and Wal-Mart.

Nardelli’s prior experience does not include a challenge of this magnitude.

Arguably, working at a company like GE is somewhat insulating because they are a self-professed leader in the markets and customers they serve, or they get out of the business.

Sort of a self-fulfilling prophecy… You’re only good at what you try to be good at. Has GE ever stayed the course and made a poorly-performing business into a highly-performing one, or do they cut bait before it gets interesting?

Six Sigma ain’t gonna cut it against the likes of Toyota and Honda. And the GM Production System has yielded some very competitive plants in terms of productivity and initial quality. Ford’s new CEO is a true believer in the power of Lean and I’m confident they will make it a priority.

Here’s my prediction — Nardelli will gravitate towards fixing underperforming dealers and hire some ex-Marines to whip them into shape, like he did with Home Depot. He will squirrel away all his energy and goodwill trying to fight impossibly restrictive state franchise laws, only to find out that his core operational performance is still lacking.

By then, Wolfgang Bernhard will be brought in from the wings to salvage what’s left…

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]]> By: mike http://www.leanblog.org/2007/08/flash-nardelli-to-run-chrysler/#comment-2366 mike Tue, 07 Aug 2007 13:59:00 +0000 http://leanblog.bigbigdesign.net/2007/08/updated-nardelli-to-run-chrysler/#comment-2366 Interesting that in the Autos Insider section of the Detroit News online edition yesterday readers could follow along with all the Chrysler-Daimler-Cerberus soap opera and "we're going to do great things, blah, blah, blah." Then down toward the bottom there was a small item that simply said "Toyota makes record profits--again." Everything else is just "sturm und drang." Interesting that in the Autos Insider section of the Detroit News online edition yesterday readers could follow along with all the Chrysler-Daimler-Cerberus soap opera and “we’re going to do great things, blah, blah, blah.” Then down toward the bottom there was a small item that simply said “Toyota makes record profits–again.” Everything else is just “sturm und drang.”

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]]> By: Mark Graban http://www.leanblog.org/2007/08/flash-nardelli-to-run-chrysler/#comment-2359 Mark Graban Tue, 07 Aug 2007 00:11:00 +0000 http://leanblog.bigbigdesign.net/2007/08/updated-nardelli-to-run-chrysler/#comment-2359 You can't always trust Wikipedia, particularly on breaking news. LaSorda is clearly the #2 in the news articles and he was named "vice chairman."<br/><br/>The name of the firm Cerberus comes from tales referring to "the hound of Hades, a monstrous three-headed dog." Nice indeed. You can’t always trust Wikipedia, particularly on breaking news. LaSorda is clearly the #2 in the news articles and he was named “vice chairman.”

The name of the firm Cerberus comes from tales referring to “the hound of Hades, a monstrous three-headed dog.” Nice indeed.

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]]> By: Seb http://www.leanblog.org/2007/08/flash-nardelli-to-run-chrysler/#comment-2358 Seb Tue, 07 Aug 2007 00:01:00 +0000 http://leanblog.bigbigdesign.net/2007/08/updated-nardelli-to-run-chrysler/#comment-2358 Hi Mark,<br/><br/>just to clarify. I read on <a HREF="http://en.wikipedia.org/wiki/Thomas_W._LaSorda" REL="nofollow">wikipedia</a> that they just made Tom LaSorda Chairman and President.<br/><br/>Wouldn't that make him Bob's boss (of sorts as he chairs the board that hires and fires the CEO), rather than his #2?<br/><br/>At any rate, with Tom LaSorda seeming to have a good grasp on how to cut costs the right way (also see <a HREF="http://www.gembapantarei.com/2005/10/kaizen_mindset_at_the_head_of.html" REL="nofollow">this link</a> on this), what I am really interested in is seeing what that combination of Bob "I am the OneAnd Only" Nardelli and Tom LaSorda will do to Crysler.<br/><br/>BTW, I didn't follow Crysler, but given that Daimler just sold them to Cerberus (what a name), Tom couldn't have been too successfull with his Lean efforts as CEO, or am I wrong here?<br/><br/>All the best,<br/>Seb Hi Mark,

just to clarify. I read on wikipedia that they just made Tom LaSorda Chairman and President.

Wouldn’t that make him Bob’s boss (of sorts as he chairs the board that hires and fires the CEO), rather than his #2?

At any rate, with Tom LaSorda seeming to have a good grasp on how to cut costs the right way (also see this link on this), what I am really interested in is seeing what that combination of Bob “I am the OneAnd Only” Nardelli and Tom LaSorda will do to Crysler.

BTW, I didn’t follow Crysler, but given that Daimler just sold them to Cerberus (what a name), Tom couldn’t have been too successfull with his Lean efforts as CEO, or am I wrong here?

All the best,
Seb

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