Comments on: More Short Term Thinking

By: Gabriela

Gabriela — Wed, 02 Jul 2008 15:24:54 +0000

I’ve been wondering whether a privately owned company or a publicly traded company that has the vast majority of shares in the hands of the very few selected has a better chance of having a long term vision and a 10-year plan than the rest. Ford would tend to disprove my point but then, each generation of owners dramatically changed the focus, so it was not passed on from generation to generation.

Or is it just a chance that Toyota got it right, making the right decisions? On the other hand, we all knew that sooner or later oil will be an expensive commodity, yet they reacted the earliest. Maybe it’s safe to assume that their success came based on their need to fulfill a need that went contrary to mass production, so GM and Ford would have done it too given different circumstances they were operating in.
Ooops, too many ideas thrown back at you!

By: Ethan Berry

Ethan Berry — Tue, 01 Jul 2008 12:23:32 +0000

Point well made Mark. Many a good company has stumbled from a series of “knee jerk” reactions in response to market changes (forseen and unseen). If you walk staring only at your shoes, you’re more likely colide with a tree even if its existence is known. From observing only headlines, one can tell Toyota holds its head high and stares straight ahead, sometimes identifying what’s beyond the line of sight.

By: Mark

Mark — Mon, 30 Jun 2008 16:50:59 +0000

I think the long range plan helps the leadership keep their eye on the compass, even if they need to take a detour.

I don’t have any idea how flexible Toyota is about switching between models. But I do know they have not had any layoffs since 1947 or so, and yet have been consistently profitable.

I don’t believe there is any definition or such thing as “running lean.” Rather, there is a robust leadership process that keeps their eye on the long-term objectives… and (so far) consistently hits them. This leadership system is pervasive. Of course they have problems, everyone does. But, overall, the organic structure of the organization makes them very flexible by removing the need for the top leaders to control every detail.. plus it gives those leaders the confidence to know they don’t have to.

By: Jim Fernandez

Jim Fernandez — Mon, 30 Jun 2008 16:00:36 +0000

Are you suggesting that having a longer range plan can help a company through a short term downturn in the market? It does seem possible.

Do you have any ideas on how running lean could help a company make quick changes. Because Toyota runs lean, maybe they can make a quick change from building X amount of big truck to building X amount of smaller trucks and cars instead. And then when needed, easily switch back again. I’m just speculating here…..