Have You Driven a Metro Fiber Network…Lately?
May 12, 2009
If those of you who read this blog believe in fair play, integrity, determination, self-reliance and rewarding success – you have to root for the Ford Motor Company.
In one definite way, the automobile industry meltdown in America is similar to the Telecom meltdown circa 2001-2003: there is an unfair pattern. It appears that Ford Motor Company will make it out of the meltdown on its own – not using bankruptcy as a financial strategy and no government welfare (bailout) checks. Ford is doing it the old-fashioned way – by leadership, management, employee trust, sacrifice, consistent strategy and focus upon the customer.
Speaking from experience, Ford will eventually find itself at a disadvantage over rivals. The punishment for carrying your own weight will be government enabled (subsidized) competition with a lower cost structure paid for by US taxpayers, including Ford Motor Company employees themselves.
The Federal government, to a certain extent, did not mettle in the Telecom meltdown outside of a few Federal prosecutions for accounting fraud. The government pretty much left the industry to itself to sort out matters in an open market. There has always been corporate welfare money in Telecom available on a local, state and Federal level to those that claimed they needed it or by a Lobbyist stacking the deck. I would often laugh to myself while listening to a CLEC CEO (who was taking in government welfare checks) carry on about how wonderful the business is under his leadership. Hey–if you are really that good, then why tap the taxpayers? Oh sure, it is good for share-owners – free money – but in my reality you don’t take money you don’t need– especially when one plays the “relocation-of-jobs” threat card.
The Telecom industry today is stronger and more viable as the result of no government bailouts artificially propping up the inevitable. However, for the handful of a few companies who did not use bankruptcy as a financial strategy, there is no just reward for truly demonstrating great business leadership. My hat goes off to those companies that grew throughout the Telecom meltdown and did it by way of leadership, persistence and focus.
However, you won’t even get a Gold Star!
Paramount to those that know how to run a business and those who don’t, I still remain amazed when a CEO or CFO from a Chapter 11 or Chapter 22 company emerges yet again somewhere else with all the glory and accolades as a new leader. What are these Boards or investors thinking? Why hire proven failure? Oh, I forgot–in America everyone is a victim. These CEO’s and CFO’s were forced to drive their companies into a hole and are just innocent victims of the economy, lack of demand, a bad business plan, poor execution, regulation, competition, bad assumptions, etc…
To the Ford Motor Company and its employees: as you move out of the auto industry turndown based upon your own initiative and true grit, welcome to the very small club of companies that survive and thrive after such a horrendous downturn. This accomplishment should be greatly valued as you protected your investor and creditor interests.
Should be valued, but won’t.
Wall Street will be back to the next 90-days and marginalizing history, grit, determination, great management and dedicated employees. Even your shareholders, who could have lost everything, will soon forget your great accomplishment based upon some Wall Street spreadsheet and analyst view of the next 90-days.
For what it’s worth, I am giving the Ford Motor Company a Gold Star.
Written by Dave Rusin - Telecom Executive
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