The Lean Agile Executive Blog

Wall Street Journal? New York Times? Why is Lean and Agile not a story?

Over the last 2 years we’ve seen some pretty hard times in economies in Europe and especially the USA. Financial services and lending business were in an state of near collapse. With each day companies were announcing job cuts. Job losses in the US are higher than they have been in 30 years. Now that the economy has stopped shrinking, and markets are starting to improve, companies are facing a much more difficult business situation. Stock prices and profits have recovered in some sectors, however most companies face slow growth, and systemic changes in their marketplaces. The US consumer has lost a substantial amount of net worth. That group is not coming roaring back to consume like they have in the past. Many of the businesses that cut staff will not be hiring them back, either because they don’t need the capacity, are doing something different, or are out of business.

Many State and local governments are facing heavy shortfalls in revenue. One important reason for declining tax revenue is property taxes. Property taxes are hard to collect when the property is in foreclosure. Commercial properties are also strapped as their clients break leases or only make limited payments. These losses often result in commercial property owners going out of business. The commercial property failures significantly lag consumer mortgage foreclosures, since commercial properties are not affected until their clients start going out of business. Booming government deficits, high unemployment, slow growth, and increased competition in a global marketplace.

As bad as the economy is now, I am sure it is not as bad as Japan’s collapsed economy just after World War Two. That is when Toyota decided to enter the automotive business. 60 years later Toyota leads the industry by most benchmarks, and are more profitable then the next 4 automotive companies combined. During this recession GM and Chrysler collapsed, and all three big auto companies required billions of taxpayer dollars just to survive as much smaller companies. At the same time Toyota took thousands of idled workers and launched retraining programs so they would be ready for the next generation of manufacturing, new assembly systems, and upcoming products.

The great recession of 2008/9 was bad for airlines, many shrank 10 to 15% and some went bankrupt. During this same recession Southwest Airlines managed to grow by 1%, while paying its pilots more than any other US Carrier. Southwest has been profitable for 36 years straight.

There is a major story that is being completely overlooked by the American Media. That story is how some companies have found a way to gain not one or two years of competitive advantage, but 10-20 years competitive advantage. How some companies consistently innovate and thrive, while others consistently fail to meet the expectations of their customers, employees, investors, and the public. These under-performing companies may have survived the recession, however unlike GM and the banks, there is no bailout coming from cash strapped governments to save them.

What do successful companies like Toyota and Southwest airlines do differently? Can they provide a road map for other organizations? What stopped GM from changing and how to recognize those patterns in other companies?

The New York Times and Wall Street Journal are missing the boat for their readers. There is an important story that European and American business leaders are largely clueless on. I know because of the conversations I have with their VPs, managers and staff. The executives running those companies have a fiduciary duty to get up to speed and start to redesign their organizations so that their companies stop surviving and start thriving.

Dilbert.com

1 Response to “Wall Street Journal? New York Times? Why is Lean and Agile not a story?”


  1. [...] This post was mentioned on Twitter by Bob Marshall and Alan Shalloway, Sam Sgro. Sam Sgro said: RT @flowchainsensei: "WHY IS LEAN AND AGILE NOT A STORY?" Nice article and cartoons http://bit.ly/e7Jqa8 /via @softqual [...]

Comments are currently closed.