Monday, March 29, 2010

Bob the Painter

Bob loved to go to art museums, so he decided he would become a painter. He studied the art of the old masters and began to learn to copy them brush stroke for brush stroke. He learned about color and texture and became a very good painter.

Bob’s favorite artist was Van Gogh so he decided that he would copy all of Van Gogh’s paintings. He became very good at copying Van Gogh and eventually could make exact copies of Van Gogh’s painting without even looking at the original.

Bob entered his paintings in an art fair, but the judges just laughed and said, “These are just copies of Van Gogh. These have already been done.” Bob was sad, but he went to the art fair anyway. There he found all kinds of exciting new paintings, things like he had never seen in the museums. Wonderful new exciting things were around every corner. So Bob sat down to think and listen to a band that was playing as part of the art fair.

The band played all of his favorite songs that he had heard on the radio many times. Then the headline band got up to play. They looked and sounded just like his favorite band from 1964. They played all the great songs from 1964 to 1968. They sounded just like the original band.

Bob soon learned that this band was paid hundreds of dollars to sound like the old band, but the artists had to pay hundreds of dollars to show the new and exciting art.

Bob was very confused. He decided to become an accountant where cents makes sense, and he did not have to decide if he should copy the old masters or make new art.

Bob died that day, and he was buried fifty-four years later.

The End.

Monday, March 08, 2010

Toyota's Troubles

In 1958, I carefully cut out pictures of all the new cars from magazines and put them in a scrapbook, grouped by manufacture, make, model, and list price. I have been a follower of the auto industry ever since.

With that in mind I decided to weigh in on the Toyota deal. I heard the media say that Toyota has a reputation for quality, safety, and reliability. That is not quite true. Those are three different and mostly unrelated qualities. BMW and Mercedes Benz are known for quality. Volvo and Volkswagen are known for safety, and Toyota and Honda have a reputation for reliability.

Of the three, reliability is the most elusive. This is partly because all cars are pretty reliably these days with little difference between manufactures. Also, there are many ways to measure reliability. If we look at the number of times we have to take the car back to the dealer in the first 90 days, we would be looking at a totally different list than if we are talking about the cost of maintaining a car with 100,000 miles on the clock. Which is most important is up to the individual and of course, as they say, your mileage may vary.

Toyota’s problem was that in trying to hold on to this precarious position, they chose the route of denial, blaming their detractors, and offering a quick fix, instead of addressing the problem.

The lesson for the rest of us is to face our challenges head on, admit when we make mistakes, and solve the problems as best we can, as quickly as possible. Toyota, in believing their own marketing, has shown that any other approach doesn’t work.