Chrysler Needs to Redesign Its Business Process.By
Pete Mortensen at Jump sent in this comment that deserves our attention. He points out that Chrysler has been designing great looking cars. The real problem is designing better supply chain and other other business processes. It’s a good argument. Here it is:
“The thing is, great design at Chrysler never stopped. The awards went away, but the company has continued to come out with hot vehicles in the years since the Daimler take-over, including the Crossfire, the PT Cruiser, the 300, the Avenger…
Chrysler is working at the leading edge of design and innovation. We have had the privilege work with them at Jump, and they are very clued in to the cutting edge of this stuff. The problem here is not necessarily lack of interest or commitment to design or innovation. Many, many people in the company were ruthlessly committed to such notions.
But there are many parts to a business, and great, attractive products aren’t everything. In all likelihood, they really do need to get leaner in their operations and innovate some processes of the business that I’m frankly not privy to. This isn’t irrelevant in terms of turning the business around. Cliche as it might sound, it is critical that Cerberus tighten up the bottom line. The supply chain might be the problem. Design as you’ve talked about it above isn’t going to fix that.
On the other hand, it is also extremely important for Cerberus to make sure that the company continues to move the top line as well as the bottom line. And this speaks to the role of designers to make connections between disparate groups and build consensus and move ahead on the vision-oriented strategic side of things. It’s the toughest skill a designer or design manager can occupy, but it’s significantly more important than great-looking products.
Any time new leadership comes, there will be a re-evaluation of priorities. We’ll soon see if Cerberus is there to just pump Chrysler up and resell, or whether they’re committed to making the company great again. And that greatness will surely involve design, but it will likely be the designs the public never sees — organizational structures, supply chains, strategy sessions — that will hold the biggest impacts.”
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.