Re: TOM WALSH: Chrysler gears up to use criticism to solve shortcomings (Detroit Free Press)heres the full monty that was on the web site
CEO tells workers to analyze complaints
BY TOM WALSH . FREE PRESS COLUMNIST . June 8, 2008
At around 7 a.m. last Wednesday, Chrysler LLC Chairman and Chief Executive
Officer Robert Nardelli fired off an e-mail to all company employees.
Chrysler's biggest business challenge, he wrote, is to understand why many
potential customers don't consider buying Chrysler, Dodge or Jeep brand
vehicles.
And then do something about it.
Nardelli wants no whining about Chrysler products not getting a fair shake
from Consumer Reports magazine or the latest J.D. Power and Associates
report on vehicle quality.
Rather, he wrote, instead of putting defenses up, Chrysler workers should
seek to understand the harshest critics of the company. And then get to work
on solving the shortcomings cited by those critics.
Interestingly, Nardelli's e-mail was sent about five hours before the 2008
J.D. Power Initial Quality Study results were released at a lunchtime
briefing in Detroit.
Nardelli and his top lieutenants already knew what the Power study showed --
that Chrysler cars and trucks had far more quality defects than the industry
average -- but most Chrysler employees and the general public didn't know
the bad news, yet.
His message was preemptive in a way, preparing the troops to hear some bad
news.
Nardelli wasn't scolding or berating people for the bleak results -- Jeep
ranked dead last among 36 brands -- nor did he try to soften the blow with
lame excuses. He could have exempted himself from blame, for example, by
saying the vehicles in this quality study were built and purchased before
Cerberus Capital Management, which bought 80% of Chrysler from
DaimlerChrysler AG last August, was able to make improvements.
Instead, he hammered home points that he has been repeating since taking the
helm at Chrysler 10 months ago:
. Don't hesitate to confront problems.
. Everything is about pleasing the customer.
. Raise the standard defining excellent quality.
If this sounds like stuff straight out of the General Electric Co. playbook
from the era of legendary former GE chief executive Jack Welch, that's
probably no coincidence. Nardelli spent 29 years at GE before becoming CEO
of Home Depot in 2000. Welch, a major influence and mentor to Nardelli,
preached that a great leader must focus on articulating the organization's
strategy and values, and on developing more leaders at all levels.
Chrysler, it so happens, is planning to embark soon on intensive new
leadership training for its top 300 executives.
Will any of this make Chrysler a better automobile company? And even if
Nardelli is saying the right things as the professor of culture change, does
he have enough time? Or will Chrysler be engulfed by the sea change tossing
Detroit's automakers around as if they were toy boats?
Those are fair questions. Soaring gasoline prices, at a time when Chrysler's
bread-and-butter products are big trucks, powerful cars and family-hauler
vans, are hammering U.S. vehicle sales in general and Chrysler in
particular. Chrysler sales fell 24.3% in May and were 19.3% lower for the
first five months of 2008 than in 2007.
General Motors Corp. and Ford Motor Co. stocks have been drubbed in recent
weeks by rocky economic news. And even though Chrysler is now owned by a
private-equity firm instead of being a publicly traded stock, you can be
sure its owners are just as nervous as GM and Ford stockholders.
I don't know if Nardelli and his management team will survive today's storms
and lead Chrysler to a new era of prosperity. Ten months isn't time enough
for even the most urgent and dynamic leadership team to overhaul an auto
company's vehicle lineup.
I do know it's smart for Nardelli to tell his folks in Auburn Hills to take
a candid look at what J.D. Power and Consumer Reports are saying about
Chrysler products. As he said in his e-mail Wednesday, those outsiders might
not tell the full story of what's going on at Chrysler, but they do shape
public perception about its products.
If Chrysler is to survive and prosper, the journey must begin with
unflinching candor about the way things are
admin@ng2000,com > wrote in message
news:191856185546822.Post@ithinknot,net ...
>
> http :// www .ng2000,com /fw.php?tp=chrysler
>
> 06/08/2008: Chrysler's biggest business challenge, Chrysler Chairman and
> CEO Robert Nardelli wrote last week, is to understand why many potential
> customers don't consider buying Chrysler, Dodge or Jeep brand vehicles.
> And then do something about it.
>
>