Why Ford Gets It with PGA!

First, in full disclosure, I must tell you that my husband and I are Ford automotive customers and have been for years. My very first car was a 1968 Ford Mustang.

Second, I am impressed by businesses and their leadership that actually get it when it comes to rethinking and doing things differently if they want to keep their loyal customers, their shareholders and stakeholders happy.

Third, I vote with my income by supporting those organizations that live their vision, values while still achieving their mission.

Fourth, if you thought PGA was connected with Professional Golfing Association, you are possibly in the wrong blog.

With that said, I was delighted to come across this article in the Wall St. Journal about the CEO of Ford Motor Alan Mulally.  Here is one rare executive who understands the purpose of business and is making that a reality. The article quotes Mr. Mulally as follows:

“It’s back to Henry Ford’s original vision, isn’t that cool?” gushes Mr. Mulally, reaching for—you guessed it—yet another chart. “It’s all about producing products people want,” he adds. “Our goal is PGA.”

PGA is short for Profitable Growth for All.  What an unusual concept especially in today’s market place where the profit word is almost “dirty” and growth well that just can’t happen given the economy and all. Mr. Mulally is returning to Henry Ford’s original vision.  Possibly others could do the same.

For Henry Ford got it as well.  He understood the purpose of business is to attract and then retain customers. Of course his insistence on any color as long as it was black probably was one of his blinders. Yet, 100 years later, Ford is the only domestic vehicle manufacturer to show a profit and may again be the #1 manufacturer. These results are because of some sound, not pie in the sky, business behaviors.

Sales must work with operations to demonstrate a profit.  This is simple math.  Sales less costs equal profits.  If you too wish to increase sales, then see how you can deliver what your customers want while providing quality, affordability and value.

Henry Ford got it over 100 years ago and you can get it today.

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