Lee Iacocca Chrysler Quotes

Business leadership is based on two elements: vision and technical competence. Top people in a given industry always embody at least one of those two elements. Sometimes, but rarely, they embody both of them. Simply put, vision is the ability to see what other people don’t. It’s a Ford executive named Lee Iacocca realizing that a market existed for an automobile that was both a racing car and a street vehicle—and coming up with the Mustang. It’s Steven Jobs realizing that computers needed to be sold in a single box, like a television sets, instead of piece by piece. About one hundred years ago, Walter Chrysler was a plant manager for a locomotive company. Then he decided to go into the car business, which was a hot new industry at the time. The trouble was, Walter Chrysler didn’t know a lot about cars, except that they were beginning to outnumber horses on the public roadways. To remedy this problem, Chrysler bought one of the Model T Fords that were becoming so popular. To learn how it worked, he took it apart and put it back together. Then, just to be sure he understood everything, he repeated this. Then, to be absolutely certain he knew what made a car work, he took it apart and put it together forty-eight more times, for a grand total of fifty. By the time he was finished, Chrysler not only had a vision of thousands of cars on American highways, he also had the mechanical details of those cars engraved in his consciousness. Perhaps you’ve seen the play called The Music Man. It’s about a fast-talking man who arrives in a small town with the intention of hugely upgrading a marching band. However, he can’t play any instruments, doesn’t know how to lead a band, and doesn’t really have any musical skills whatsoever. The Music Man is a comedy, but it’s not totally unrealistic. Some managers in the computer industry don’t know how to format a document. Some automobile executives could not change a tire. There was once even a vice president who couldn’t spell potato. It’s not a good idea to lack the fundamental technical skills of your industry, and it’s really not a good idea to get caught lacking them. So let’s see what you can do to avoid those problems.

But one thing was perfectly clear: John was sacrificing himself to save the company. He was over his head and he knew it. Although it meant the end of his own career, he bent over backward to make sure that the transition would go as smoothly as possible. He blew himself out of the water to bring Chrysler back to life. And that is the test of a real hero.

McKinsey can also be hired when one executive needs “disinterested” support for an idea that might just also result in the removal of an internal rival. Lee Iacocca wrote in his autobiography that when Henry Ford wanted Iacocca out of the firm, he hired McKinsey to recommend a new organizational structure. Iacocca went to Chrysler, where he used Bain & Company instead of McKinsey.29 Finally,

When the product is right, you don’t have to be a great Marketer” Lee Iacocca, CEO of Chrysler, Father of the Mustang