For about three weeks now I’ve been rolling over in my head what I wanted to place on the blog about the financial assistance that the Big 3 auto makers are looking for. I had to address how I feel about this, and complete some research that would go into supporting my opinion.
On the first item, here is the shortest version of my opinion. I’m offended and insulted buy this situation.
I’m offended because as a taxpaying US citizen, I have to ask “When will companies stop getting on line for their handout?” I’m a believer in the free market ideas, and when that means you have made bad decisions, you have to pay the price for them. If the price is standing up in front of your employees and saying “We made mistakes, they weren’t on purpose, and we are really sorry, but as of Monday we are out of business”, take it like a grown adult. Stop the stream of companies running to the government for their infusion of cash because they are too big to fail. It’s not about size, it’s about politics.
I recently completed my second college degree; an MBA with significant emphasis on business and global strategy. I’m insulted by the automakers because I know they have a lot of MBA’s at the top of their companies and they all are making the mistakes that MBA programs teach you address: innovation, leadership, strategy, brand management, and business communications. Right now these guys couldn’t get credit for like experiences or test out of a pre-requisite class. Bob Nardelli got tossed out of Home Depot and Alan Mullaly didn’t leave Boeing in the best of shapes. These two al least got the negotiations part right. Remember, Nardelli left HD with a huge package and Mullaly can afford the $1 salary with that signing bonus he got for joining Ford. Rick Wagoner just appalls me. He has an MBA from Harvard Business School. The HBS model for MBA studies is the cornerstone for MBA level instruction, including almost all the work I did for my MBA. I know the level of critical analysis that is expected. Rick and whoever reports to him have not been operating at that level. Maybe Rick should have kept up on his subscription to the Harvard Business Review. For $109 a year, GM’s collapse could have been avoided.
As for the second item on my list, my heart felt thanks goes out to John Helyar and Doron Levin at Bloomberg.com. Although not specifically for me, they did a lot of research into this situation and came out with this (Already Bankrupt GM Won’t be Rescued by U.S. Loan) excellent piece. Somebody has to do the hard work. I sure don’t have the time.
