as others in the team and, or, other teams. It was quite nerve-racking but there was also a great deal of team building that was a consequence of doing a good job. Each of these teams had to go through the process, diligently, until they actually understood that the next person in the process was actually to be seen as their customer. Simple, but hugely effective.
Recent Car Recalls “We have seen recalls by Toyota, Mini Cooper and Nissan, as well as many other car plants in the past three years. I think this perceived increase in recalls has possibly been as a consequence of the manufacturers sense of urgency to introduce new models into the market. Historically it took about four years to introduce new models in South Africa. When Carlos Goshn took over as CEO of Nissan one of his primary objectives was to reduce the lead times for new model introduction.
I also do not perceive that the emphasis
on process control has necessarily changed. However there could be another possible reason underlying these recalls. The reason could be that many of the Original Equipment Manufacturers (OEM) such as Toyota and Nissan, have introduced more black box components in their production lines. These black box components are completely built up components produced by third party suppliers. There was a time when OEMs produced many of these components themselves. Today they out-source a lot more and prefer to install complete units. There is a chance that the quality controls of tier one or even tier two suppliers may not be enforced at the same level as the OEM’s quality control.
Business can get very impersonal. It is easy to just focus on driving costs down. But when you cut through the flesh and you start to cut into the bone you can destroy it. Manufacturers could have pushed suppliers too hard by severe cost down drives. Have suppliers taken shortcuts due to cost cut pressures. Mr Akio Toyoda, CEO of Toyota, acknowledged that they were too conscious
about becoming number one in the world, chasing volume, and that they could have been placing more focus on quality.
Walk the talk
“I emphatically believe that the CEOs of organisations must ‘walk the talk’. I frequently ask how often they visit their different operations, how visible they are on the shop floor. I think this is fundamental. It is very easy to sit in your office and read reports. The CEO has ultimate responsibility, and as such must be fully conversant with the underlying activities in the business. Let me reiterate - seeing is believing! You can never just assume that things are being done satisfactorily. Assumptions are dangerous, and so often, we erroneously assume that things will be done.
I think it is a fundament fault for management
to distance themselves from the people. It is an extremely dangerous practice. In my time at Nissan I spent a disproportionate amount time on the shop floor. Management has got to be hugely participative in the processes within their organisations. This participation must be driven top-down.”
Non-Executive Board membership “Board responsibilities have changed dramatically since the time that I was first appointed as a non–executive director of a listed company. My first significant non- executive board appointment was 20 years ago. When you are first appointed as a non-executive director, I think the first thing you have to realise is that you might not know that much about that particular organisation. You should never feel embarrassed about the fact that you may know little about that particular business. You are often asked to join a board as a consequence of your experience and diversity of skills.
Organisations will try to balance their board
with a representation of financial people, legal people, marketing people; to ensure a blend of resources. I have always maintained that when I join a board in an industry that I do not know much about, I have only got a few
April 2012 | Management Today 19
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