Moran, Harris, and Moran pose the question, “Why do many leaders seem not to believe that they can also be learners?” (2011, p. 99). This is followed by further questions that delve into the realities of being a leader in a global world (Moran et al, 2011). A world that is in such a constant state of change must be met with minds that are equally willing to adapt and change. Janet M. Bennett (2009) states that, “For curiosity to thrive, the first action is suspending assumptions and judgments, leaving our minds open to multiple perspectives” (as cited in Moran et al, 2011, p. 99). For growth, there must first be a willingness to learn, followed by a readiness to apply what has been learned. However, application does not necessarily mean direct application. What I mean to say is, learning from others may lead to incorporating what has been learned, or it may mean discovering what will not work. This idea can be applied to cultural learning and global leadership/management. Moran et al. explore how cultural mergers can be beneficial and unsuccessful in different ways (Moran et al, 2011). For example, some aspects of Japanese management may meld well with American management, while some practices from each culture do not work well in the other culture (Moran et al, 2011). The real hurdle goes back to the concept of having an open mind and a willingness to learn and change.
Moran et al. discuss the importance of keeping up with our fast-paced world by embracing change as it comes (Moran et al, 2011). Leaders need to keep up with scientific, technological, economic, and industrial changes (Moran et al, 2011). There may be bumps in the road, as Moran et al. explain, “Perhaps the greatest challenge is for people to be more flexible in their mindsets, and willing to build continuing change into their lifestyles” (Moran et al, 2011, p. 112). The concept of learning from others and embracing change reminded me of NUMMI, which I learned about a while back in my education.
NUMMI stands for New United Motor Manufacturing Inc., which was an attempt by Toyota Motor Corp. and General Motors Co. to work together in a collaborative nature in order to learn from each other (Shook, 2010). The joint venture was a true exploration of the power of cultural influence, learning, and adaptation (Shook, 2010). John Shook looked back on the NUMMI experience and reflected on Toyota’s true willingness to learn from the venture (Shook, 2010). GM’s Fremont, California plant was in grave danger of deterioration had this joint venture not introduced new ideas and training from Toyota (Shook, 2010). Shook explained how the new training plan was implemented and started a complete turn-around of the Fremont plant employees (Shook, 2010). He stated that, “The only thing that changed was the production and management system–and, somehow, the culture” (Shook, 2010).
Photo retrieved from http://venturebeat.com/2010/05/27/tesla-paid-42m-for-nummi-but-doesnt-have-deal-to-build-cars-with-toyota/
Shook explained that the NUMMI experience gave him a new way of thinking from the general Western approach to organizational change (Shook, 2010). Instead of focusing on the mindset of everyone involved in the change, it is more effective to focus on the actions of those involved in the change (Shook, 2010). He summarized this lesson in the following statement, “It’s easier to act your way to a new way of thinking than to think your way to a new way of acting” (Shook, 2010). The rest of the article only further solidifies the positive results of the NUMMI experience (Shook, 2010). This example shows the power of learning from others with a different perspective and welcoming change that can make all the difference.
Photo retrieved from http://www.lean.org/shook/DisplayObject.cfm?o=1166
The challenges global leaders face in the twenty-first century include how to effectively deal with change and where to look for solutions to the problems they face. The answer may not be within the organization. The answer may not even be within the same culture. Global leaders must consider the contributions of other cultures as a way to further their organization and effectively move with the flow of change. Collaborative efforts like the NUMMI experience are the best way to learn and grow. The key is removing the fear or reservation of looking at differences as opportunity.
The following is a video about the start up of NUMMI and a look at the joint venture in its prime:
Video retrieved from https://www.youtube.com/watch?v=ZkiwJSAXgLw
References
Bennett, J. M. (2009). Cultivating intercultural competence. In D. Deardorff (Ed.), The Sage handbook of intercultural competence. Thousand Oaks, CA: Sage Publications.
Moran, R. T., Harris, P. R., & Moran, S. V. (2011). Chapter 4: Global leaders learning from others and change. Managing cultural differences: Global leadership strategies for cross-cultural business success (8th ed.) (p. 97-126). Oxford, UK: Elsevier Inc.
Shook, J. (2010, Jan. 1). How to change a culture: Lessons from NUMMI. MIT Sloan Management Review (Winter 2010). Retrieved from http://sloanreview.mit.edu/article/how-to-change-a-culture-lessons-from-nummi/
Thank you so much for posting on this topic, and for using NUMMI as your example!
I remember the first time I heard about NUMMI, it was shortly after watching a movie with a similar plot line, I heard that it was based on the NUMMI example. So I decided ot read up on it.
Now, prior, GM had severe issues. Period. That really is all there can be said on it. Workers never showed up on time, people would literally get drunk on the job, workers actually threw their empty liquor bottles into the door frames of cars! Customers would report “rattling” sounds all throughout their brand “new” vehicles. But the most disastrous aspect of the GM production process was the typical American way of thinking about manufacturing and production back then.. “Nothing Stops the Line!” If an employee stopped the line from moving, they would be fired. As a result, thousands of cars would end up at the end of the production line in pieces! Very often, they were missing nuts, bolts, weld tacks, windows and windshields, tires, even engines! GM’s response? Fix those cars out in the back lot, but the line keeps moving!
After NUMMI, GM sent their employees to Japan to learn from Toyota in-person. Aside from the vast number of cultural differences – both personal as well as professional – GM noted one thing that quite literally change many minds, and actually started the American’s change of heart… Toyota employees “Pulled the Cord”, and pulled it often! A Toyota in Japan, any time a problem was encountered with a vehicle while on the line, if it could not be fixed within a given number of seconds or so, a long red cord was pulled by the line operator or team member; the line was completely halted as a result. While this stopped production from continuing, the team was able to address the problem right then and there, and after the problem was fixed, the lone restarted, the end result was a finished product at the end of the line FREE of problems, issues, and missing parts. GM was dumbfounded… they instantly realized their way of thinking about production was wrong, and came back to NUMMI armed for success.
All that was left was a change in culture for those who showed up for work at the new plant. Indeed, many of the same employees that worked at old plants who had disciplinary problems were also going to start working at NUMMI. Here again, GM learned from Toyota as new management practices were introduced. Employee relations was improved with open door policies, direct communication, continuing education programs, and peer mentoring. As a result, employee behavior dramatically improved, and NUMMI – nearly over night in the business world – because the greatest success GM, and American auto manufacturers, ever saw.
Sadly, in 2010, NUMMI completed its last car, and the plant closed its doors for the last time. The new company, Tesla, eventually bought the facility and uses it today, but NUMMI will go down in history as the origins of American business cultural humility in recognizing a need for change, a willingness to accept that and learn, and achieve measured success as a result.
Thanks again for discussing this,
-AJ