Ford, General Motors and Chrysler Forgot The Big Idea
Flying in your own jet to a Congressional Hearing to ask for money was a stupid idea but it wasn’t the worst blunder the car companies made. The worst mistake they made was forgetting the two reasons we are in business. Serve your customer and make a profit. They weren’t doing either.
Clearly the big 3 dragged their feet in producing new car concepts that went with the times and their bottom lines are terrible. Yet seemingly nothing was being done about it. I am totally fine with paying big salaries to people who produce but just like football if the Coach or top player isn’t producing it is time for a change.
BizIdea: Take a look at your business. Reward the people who are producing and let go those that are not. Yes, those decisions are tough but delaying them will only risk the possibility that your business may find itself having to lay off even the producers. Moves like that makes no economic sense nor does it serve the core reason for being in business. To risk repeating. The purpose of business is to serve its customers in the best fashion it can and to make a profit so it can keep serving those customers. Miss either side of that equation and sooner or later your business will pay for it.