Management Lessons From Ford

Some people think that entrepreneurs cannot manage well. To that end, I'm recommending a terrific interview with Alan Mullaly, head of Ford Motor, which appeared in the New York Times on Sunday, September 6. It has so many nuggets of great advice on management and building an organization. It also has excellent personal advice for anyone who wants to advance their career.

Here is a brief excerpt and link to the article:

"One of my favorite stories is an analogy where this reporter stops by a construction site and he interviews three bricklayers. He asks the first bricklayer, “What are you doing?” And he says, “Well, I’m making a living laying these bricks.” The reporter says: “Oh, that’s great. That’s very noble.”

"He asks the next bricklayer, “What are you doing?” And he says, “Well, I am practicing the profession of bricklaying. I’m going to be the best bricklayer ever.”

"And the reporter asks the third bricklayer, “What are you doing?” And he says, “I’m developing a cathedral.”

"There is technical excellence and professionalism, but we all want to contribute to making a cathedral. And the more we feel that and we know what our part in it is, the more I think you can take the team performance to a whole other level of excellence."

To me an entrepreneur is building a cathedral. An entrepreneur always has to have the big vision in mind -- the end grand result. He or she can then turn that dream into something real by getting others to share the vision.

From:

Corner Office

Planes, Cars and Cathedrals

Published: September 6, 2009

Ford’s chief executive says corporate leaders should articulate a compelling vision for their employees.

http://www.nytimes.com/2009/09/06/business/06corner.html

10 Tips for Starting a Business - Tip # 7 - Your Team

Investors don't invest in products or services. They invest in people. They look at the management team as the most important part of the business.

Even if you aren't going to raise outside capital, you still need a strong team to make your business successful. Of course, the first member of your team is YOU. Why are you the person who will create a business that is successful? Do you have experience as an entrepreneur? Do you have experience in the industry? How about your partners or your advisers?

If you just have an idea or a prototype of an invention, can you tap outside experts to help you produce and market your product? Do you have trusted advisers, such as a lawyer or accountant, who can help you? How about a professional strategic planner or operations expert?

Figure out what people you need, whom you want to work with, then get the team together.

But whatever you do, make sure you work out who will contribute what and what each person will receive in rewards. Pay? Stock? Options? Work it out in advance. Then, put it in writing. Get a lawyer to help you craft a document detailing what will happen if the company grows or if the company goes bust or is sold.

In any event, if you're raising capital, highlight the skills, talents and experience of the management team in all your pitches. That is your key to success.