This month’s Time touts the innovation of Italian car-maker Fiat in the Chrysler’s resurrection. It always amazes me when an employer does something worthy of the label “common sense” that it is inflated to the term “innovative”. In an effort to help people understand the simple nature of these miraculous decisions, I offer the following connection to the dots:
- “We…brought people on the management team who had been buried beneath the classical hierarchy of corporate America” – In other words they asked people if they had any ideas and listened to them. Whoa.
- “Paying off the bailout loans six years ahead of schedule.” -But not six months ago Annalyn Censky on CNN Money, Fiat paid off the remaining shares that the governement owned in Chrysler, totaling $560 million. This also cost taxpayers, allegedly, to lose $1.3 BILLION dollars. Which is weird considering that CNN Money is a Time Warner-owned company.
- Less is More – Chrysler also reduced the number of models they would produce, thus lowering their production costs and only producing product they knew was going to sell. So if you are selling fruit and you notice that only apples and oranges are selling significantly higher than parsimons and star fruit, what are you going to sell? Again, as the article states, “it can produce brilliance”. Ugh.
- Less is More II – Instead of bringing in “squads of industrial engineers to dictate the exact sequence of each assembly process, workers were trained…” Lemme see, flying over “squads of engineers”, paying them higher wages, increasing payroll and training time versus training an existing workforce with one or two people. Hmmm.
Honestly these people need to get on the stick. I’ve already had two bailouts in my lifetime. I really don’t want another one. Unless it’s to pay off my student loans.