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Scooped by Deb Nystrom, REVELN
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Not the biggest, or the last recall: U.S. Fines General Motors $35 Million for Lapses on Ignition-Switch Defect

Not the biggest, or the last recall: U.S. Fines General Motors $35 Million for Lapses on Ignition-Switch Defect | Change Leadership Watch | Scoop.it

Federal regulators report GM has agreed to change its internal review process after a flaw linked to 13 deaths and a vast recall.

   

Excerpts:

G.M. agreed to make “significant and wide-ranging internal changes to its review of safety-related issues in the United States, and to improve its ability to take into account the possible consequences of potential safety-related defects.”

      

The faulty ignition switch, in Chevrolet Cobalts, Saturn Ions and other cars, was prone to turn off if it was jostled or weighed down, shutting the engine, and disabling the air bags and power-assisted systems like steering and brakes. G.M. has linked the defect to 13 deaths and 32 crashes.

   


“...Today’s announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects,” Transportation Secretary Anthony Foxx said.


Also, three (3) trust-related posts by Deb on REVELN:


Teamwork can also be the “secret sauce” that defines successful organizations.  Our systems for supporting high performance and leadership in teams and in entire organizations have not kept up with the times. 

     

Change Leaders: Why Should Anyone Trust Your Vision? John Kotter & Harvard Business Review

     

John Kotter’s highlights of some common assumptions about how leaders approach change.
    
Change, Ethics, Trust & Timing for your Talent Management Decisions

    

Hewitt's report features how plans on paper don’t translate to reality in the workplace when it comes to recruiting, developing and retaining talent.
Deb Nystrom, REVELN's insight:

From the article and New York Times video:  There are 30,000 parts in the average car.  This GM problem was due to a 90 cent ignition switch.  The GM recall involved 2.6 million cars.   This recall doesn't even crack the top 10 in history.


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The Ford Pinto was called, "the BBQ that seats 4."  

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The Ford Pinto, a 1978 recall, is one of the best known, with a damaging brand impact lasting for years.  The Pinto was called, "the BBQ that seats 4."  Recently,Toyota, was lambasted for covering up a sticking accelerator pedal problem, featuring evidence of how they mislead the public and failed to report the problem in a timely way.


From the Times, "...As bad as they [the recalls] sound" and from me, the mistakes are varied and useful for understanding the complexities of big organizations.  That deaths occur is tragic, very tragic.  For this reason alone, it is yet another important cautionary tale about complex systems, yet simpler fixes:


1) clear the way to communicate with your customers and regulators,


and


2) don't mess around with anything that can damage public trust in your big business.   ~  Deb

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Scooped by Deb Nystrom, REVELN
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Intuit's Scott Cook on Failed Global Expansion: 'We Should've Known Better' [VIDEO]

Intuit's Scott Cook on Failed Global Expansion: 'We Should've Known Better' [VIDEO] | Change Leadership Watch | Scoop.it

Intuit founder Scott Cook and what went wrong the first time they rolled out the company's Quicken tax prep software worldwide.


It would see cultural due diligence was the lesson learned here.  

______________________________

   

We can launch,  ....but then the sales slowed way down.  

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Yes, it seems it was a ethnocentric blind spot.  Paraphrased:  ONLY in the US did we studying the customer & give them exactly what they wanted.  We didn't do that overseas.  

    

Excerpted:

   

We'd get meetings of our global teams together…  We could launch, could get the press, we could fill the channel, we'd get initial evidence.

   

But then the sales slowed way down.   

   

Visiting the Japanese:  150 people crammed into the biggest room we had.   Strategy, plan, dream.  He asked for questions.  In Japan, they don't ask questions of the big guy.  Silence.

   

One engineer, finally, cautiously raised his hand:  Why does our product for Japan look just like an American product?  It was built for Americans, not Japanese.   …And he was right.  Ultimately the root cause problem was too hard to overcome.

   

The root cause was baked into our early decision.   …We build them based on what we knew in the U.S.

   

See the full video here.

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