Friday, May 24, 2013

Red vs Blue

The problems of Ford and Labor are eerily similar.

Ford has demonstrated poor management and a business as usual mindset while admitting that they haven't been paying attention as their customers needs changed.

Their failure is mostly a result of an inability to re-invent themselves as their markets evolved.  All compounded by the fact that headquarters was in another country, another hemisphere and another timezone - with the bosses there more concerned with dealing with bigger problems.  If Ford AU had a local management team and some autonomy then things *might* have been different.

But this is actually a very common problem with Australian companies and is the main reason why you won't find much creativity or innovation happening here.  Even our locally owned and managed corporations don't innovate - because they don't need to when their competition is operating like Ford.

It's why we have a corporate class that has evolved into rent-seekers.  It pains me to say it but our corporate management is pretty much a joke.

So what is Labor's excuse?

They have also demonstrated poor management and a business as usual mindset while admitting that they haven't been paying attention as their customers needs changed.

Their failure is also because they haven't been able to re-invent themselves.  They thought that voters wouldn't evolve and the same-old "Red vs Blue" contest would last forever.  They wasted the decade they had in opposition and didn't bother to renew.  Now they are facing another decade in the wilderness.  I suspect that the very few thinkers left in the Labor party have worked it out - but the bulk of them won't until after September 14th.

There are lots of failures - but the one that demonstrates for me the head in the sand attitude that got them into the current mess is their failure to properly deal with the Henry Tax review.  The rot set in when they mistook their own interests for the national interest - without properly understanding either.

And now they will pay the price.

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