REVENUE STRATEGY - FORD MOTOR

Ford Motor's most fundamental problem has been its dysfunctional, often defeatist culture that has degenerated it into a symbol of inefficiency where employees rationalize mistakes instead of fixing them and short term "assignments" rather than jobs discourage cooperation with other divisions and regions. According to an audit designed to uncover cost-cutting opportunities, no two vehicles in Ford's lineup share the same mirrors, headlamps, or even such mundane pieces as the springs and hinges for the hood. It lost $12.7 billion last year. It had to endure the indignity of pledging its factories, headquarters, and the rights to the iconic blue oval logo to the banks and bondholders just to get enough money to finance its turnaround plan.

So now:
1. Ford wants managers to think more about customers than their own careers.
2. It has made it a top priority to encourage its team to admit mistakes, to share more information, and to cooperate across divisions.
3. It wants to get the number of car platforms down to five or six platforms (similar to Honda) from the present thirty.
4. Its CEO is asserting more control over the product line. Now he personally approves every new vehicle worldwide.
5. Its global product development team is designing cars that can be easily adapted to appeal to worldwide markets. They've developed a global small car that Ford will build in two or three plants starting in 2010, and which will sell in the U.S. for $10,000 to $12,000. It will differ only slightly from the version that will sell in South America, Europe, and Asia.
6. Another key goal in the near future is to create a midsize sedan that could serve both North America and Europe.
7. It is forcing every operating group to share all its financial data with every other group because "You can't manage a secret."
8. It has turned the traditional monthly meeting of divisional chiefs into a weekly affair. Every executive has to attend in person or by videoconference. No subordinates can be sent. Operating chiefs are now encouraged to bring a different subordinate to every meeting - a big step at a company where underlings formerly were not privy to sensitive data. It wants staffers to start buzzing about its ideas through unofficial e-mail, blog, and watercooler channels.
9. It is also taking symbolic steps to treat white-collar and blue-collar employees more equitably. This year many workers on the shop floor will receive bonuses of $300 to $800, based on a new formula that is also being applied to executives.
10. It is breaking long-standing company taboos, such as the one about never admitting when you don't know something.

N.B: Even mind-set affects revenue

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