Wednesday, January 9, 2013

What Does the Ford Fusion Have to do with Governance?



Well, Ford Motor Company has done it again. The 2013 Fusion was named Green Car of the Year by the Green Car Journal. To me this represents the results of a process that Toyota calls kata or another variation on kaisen — persistent continuous improvement—finding your way into a better and better future product through small continuous increments, learning as you go.
What does this have to do with leadership? With good leadership—Everything. Ford, once discovering continuous improvement as the process toward excellence in the future, stayed the course for 15 or more years now. That takes determined and knowledgeable leadership. GM was herky jerky regarding CQI, on and off, and it proved seriously damaging. They were the one, along with Chrysler, who needed a Federal rescue and a remake. Ford did not, even through the toughest of times.
Excellent leaders seek excellence, if not perfection (think of Steve Jobs for all his distractions as a personality—he gave Apple a culture of perfection to the absolute extent possible). And seeking excellence takes a long view.
Strangely, governing boards, who would never tell their managements not to seek excellence, don’t seek it themselves in their own governance. I commonly hear the old saw, “Well, I believe if it isn’t broke, don’t fix it,” from board members who are perfectly happy doing what they have been doing for decades.
There are three areas that boards need to continuously seek the most effective way, the structure, or shape, of the governance (size, committees, membership, input structures, officers, dates and times, etc.), the process the board uses to achieve creation of the governing "products" (decisions, policies etc.), and the dynamic of the board (its manner of conversing and decision-making). All three must be optimized. This takes persistent learning and diligence, not something the average board is used to being or doing.
(This was originally posted on our website Dec. 10, 2012)
RMB

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