Comments on: How Long-Term is Your Strategy? http://www.jrothman.com/blog/mpd/2008/11/how-long-term-is-your-strategy.html Management, especially good management, is hard to do. This blog is for people who want to think about how they manage people, projects, and risk. Fri, 18 May 2012 15:02:36 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Jim Ward http://www.jrothman.com/blog/mpd/2008/11/how-long-term-is-your-strategy.html/comment-page-1#comment-30089 Jim Ward Fri, 21 Nov 2008 14:05:23 +0000 http://jrothman.com/blog/mpd/?p=8556#comment-30089 Before you condemn a bailout for the auto makers you should read this article from the New Republic. http://www.tnr.com/politics/story.html?id=a4893b49-36df-4784-9859-2dfa3a3211bf. Right now, the economic issues are far greater than whether Detroit is making the best cars in the best way. We are on the verge of a serious recession. The auto makers can't get credit through normal channels. We need to step back and look at the big picture here. Your points about strategy and projects are right on target, as usual. Before you condemn a bailout for the auto makers you should read this article from the New Republic. http://www.tnr.com/politics/story.html?id=a4893b49-36df-4784-9859-2dfa3a3211bf. Right now, the economic issues are far greater than whether Detroit is making the best cars in the best way. We are on the verge of a serious recession. The auto makers can’t get credit through normal channels. We need to step back and look at the big picture here.

Your points about strategy and projects are right on target, as usual.

]]> By: Pawel Brodzinski http://www.jrothman.com/blog/mpd/2008/11/how-long-term-is-your-strategy.html/comment-page-1#comment-30076 Pawel Brodzinski Fri, 21 Nov 2008 08:20:58 +0000 http://jrothman.com/blog/mpd/?p=8556#comment-30076 A huge difference between developing software and building cars is not on the protyping stage but on the produtction stage. Cost of prototyping is really low when compared to switching whole production line to schemas of a new model teaching dealers about the car pushing significant effort into marketing etc. Actually when talking about protyping automakers have an advantage over software makers because <i>relatively</i> it cost them less to do that. The pain in the neck for automakers is lifecycle of a product. It most likely takes about 5-7 years before they switch to a completely new design (aka new model even if it's called the same) and they can't change iteratively module after module until the job is done. They have to change everything. Having said that I agree with your conclusion (shorter iterations and/or prototyping brings better and faster feedback about your work) however if you were to implement that strategy for car busienss it would have to be adjusted first to specifity of the branch. A huge difference between developing software and building cars is not on the protyping stage but on the produtction stage. Cost of prototyping is really low when compared to switching whole production line to schemas of a new model teaching dealers about the car pushing significant effort into marketing etc.

Actually when talking about protyping automakers have an advantage over software makers because relatively it cost them less to do that.

The pain in the neck for automakers is lifecycle of a product. It most likely takes about 5-7 years before they switch to a completely new design (aka new model even if it’s called the same) and they can’t change iteratively module after module until the job is done. They have to change everything.

Having said that I agree with your conclusion (shorter iterations and/or prototyping brings better and faster feedback about your work) however if you were to implement that strategy for car busienss it would have to be adjusted first to specifity of the branch.

]]> By: Andy Wagner (TGI 2006) http://www.jrothman.com/blog/mpd/2008/11/how-long-term-is-your-strategy.html/comment-page-1#comment-30057 Andy Wagner (TGI 2006) Fri, 21 Nov 2008 02:21:47 +0000 http://jrothman.com/blog/mpd/?p=8556#comment-30057 Johanna, You're right on with this post. I grew up outside Detroit, worked in the industry a few years, and have been watching it closely ever since. Back when Toyota and Honda were develop cars in 36-months, Detroit was doing it in 48-60 months. When Detroit got it down to 36-months, the Japanese were doing it in 24-months. Now Toyota is introducing new models in 18-months! How do they do it? A major change to the expensive hard tooling might only happen once every 3-4 years. Between those expensive changes, they iterate once each year, gradually improving the product. Major changes are done using rigorous discipline, checklists and design practices that allow lessons learned to be passed down from one program to the next. Toyota tends to be very conservative as a result, but demanding design requirements continually push the product forward. I think most American industrial companies tend to breed fire fighters instead of farmers. Instead of thinking strategically and anticipating problem, they continually react, never getting ahead. It's painful to watch and be a part of, knowing that there is a better way. -Andy Johanna,
You’re right on with this post. I grew up outside Detroit, worked in the industry a few years, and have been watching it closely ever since.
Back when Toyota and Honda were develop cars in 36-months, Detroit was doing it in 48-60 months. When Detroit got it down to 36-months, the Japanese were doing it in 24-months. Now Toyota is introducing new models in 18-months!
How do they do it? A major change to the expensive hard tooling might only happen once every 3-4 years. Between those expensive changes, they iterate once each year, gradually improving the product.
Major changes are done using rigorous discipline, checklists and design practices that allow lessons learned to be passed down from one program to the next. Toyota tends to be very conservative as a result, but demanding design requirements continually push the product forward.
I think most American industrial companies tend to breed fire fighters instead of farmers. Instead of thinking strategically and anticipating problem, they continually react, never getting ahead. It’s painful to watch and be a part of, knowing that there is a better way.
-Andy

]]> By: Michael Hedgpeth http://www.jrothman.com/blog/mpd/2008/11/how-long-term-is-your-strategy.html/comment-page-1#comment-30028 Michael Hedgpeth Thu, 20 Nov 2008 17:40:36 +0000 http://jrothman.com/blog/mpd/?p=8556#comment-30028 Are you aware of how many agile practices are tied to how Toyota makes cars? The Toyota Way by Liker is an interesting book; I think you'll see a lot of familiar concepts in it. Are you aware of how many agile practices are tied to how Toyota makes cars? The Toyota Way by Liker is an interesting book; I think you’ll see a lot of familiar concepts in it.

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