An article on Time on Maximum Bob Lutz's new book, "Car Guys vs. Bean Counters: The Battle for the Soul of American Business."

It basically argues, as I have strongly felt for a long time, that the U.S. car industry in particular and the U.S. manufacturing and services industries in general, have been ill served by being run by finance-based MBAs rather than product-based engineers and designers. Balance-sheet management has its place, but that place is below first and foremost developing excellent product.

Interesting how Ford's recent fortunes have soared with their renewed emphasis on aggressive product engineering and development.

 

I'm going to get that book and much truth spoken there Rhumb as we have plainly seen many times over.

 

I dsagree, if not for the "bean-counters" (of which I am one), the engineers would far surpass their budgets 10 times over and never finish developing a project, much less a great one. I say that having been an engineering major for a while as well, engineers design some truly awesome things, but often not feasible/sensible. Its the MBA's that keep them in line and being productive.

 

In an interview for the book, Lutz didnt denigrate the finance guys, he said the biggest problem is that they had come to rule the roost at GM and to many descisions were based on balancing a spread sheet rather than making a quality product that would resonate well with the public.

When the truth is that for a car company to be successful, you need people who are passionate about the product (Lutz as an obvious example) driving the finance and engineering of the company so that one doesn't take precedence over the other.

And Stang, on the otherside of the spectrum (having heard this from an engineer in the auto field) its very frustrating when the product guys give them an assignment - it has to do this, has to be this safe, has to last this long, has to cost this much, et al. Only to have the finance guy come by and start changing the project so that they can save this much here and that much there (Lutz used carpet as an example in that interview - swapping out the original spec carpet for lighter duty material because it looked good on paper).

 

The "bean counters," if you will, certainly do have an important role in the car industry, but I think the problem is that they've assumed the lead role driving product development rather than a support role behind the engineering guys to facilitate product excellence.

Sure, the engineers do have to keep their feet to the ground in terms of financial realities, but they should still be the ones at the lead of the companies and the products that come out of it. I think Detroit and much of America has gotten that upside down the past 40 years or so.