I read a story a few weeks back involving Ford Motor Company. The events happened pre-2008, so the story has nothing to do with the Federal bailouts – or does it?
From 1985-1993, Harold Arthur “Red” Poling served as president, vice chairman and CEO of Ford. He’s often referred to as a miracle worker who saved Ford in the 1980s.
Red is also an accomplished golfer. Poling met with golf legend, Jack Nicklaus about building a golf course on Ford land. He stated early-and-often that the budget for the project was $2.5 million.
Nicklaus explained that if Red wanted a good course it would cost $200,000 a hole to build, making the project $3.6 million.
Poling starred down the best golfer on the planet and said, “Then we’re going to build the best 12-hole golf course ever.”
That’s someone who respected a budget.
It’s been 16 years since Poling left Ford and look at where the automotive giant is today – one step from bankruptcy. Maybe Poling is available to consult and help Ford’s executives see where they went wrong.
Clearly, Ford – and the other U.S. car makers – need leaders who can master three things:
- Budget. If expenses are more than income you run a deficit. Duh.
- Understand finances. Where are your revenue streams, and are they increasing? Are expenses flat or are you predicting an increase?
- Cutting. If revenue is down what and where can you cut? Are there sacred cows that need to be eaten?
These questions seem pretty easy – the answers even easier. So why are the Big 3 in such disarray?
Posted on
Monday, May 4, 2009
by Sean Taylor Simpson
filed under