Solera Holdings, LLC.’s Post

There is an old story in manufacturing circles that went along these lines, “if you want to know if a supplier is at risk of going bankrupt, watch their quality defect rates.” I believe Honda pioneered that concept. That’s not quite what I wanted to communicate here but I am starting to wonder about a correlation. The correlation is this: Is there a relationship (note I did not say causal) between companies’ that emphasize or heavily focus on DEI programs and quality and/or programmatic outcomes? It’s a rhetorical question though one that can be measured. I am in no way suggesting that diversity is a “bad idea”, in fact, I feel strongly that diversity is something all companies should strive to encourage - it prevents Group Think. The diversity that I am talking about is the “diversity-at-all-costs” varietal with the intent to move the hiring numbers in a “positive” direction but also requires that otherwise qualified employees are re-directed elsewhere, often times, out. Consider this story from the Wall Street Journal examining the role of outsourcing key systems to Boeing given the recent Alaskan Airlines debacle. 1. In 2001, John Hart-Smith, a Boeing aerospace engineer wrote a white paper on outsourcing stating that Boeing’s performance will never exceed the weakest link in the supply chain. Quality issues will not disappear via outsourcing. 2. Boeing faced multiple quality problems including misdialed holes, loose rudder bolts and now the MAX 9 door-plug blowout according to the WSJ article.  3. Spirit AeroSystems, the sole supplier of fuselages has had huge production and quality problems possibly due to the thousands of workers laid off during the pandemic. 4. This resulted in significant pressure on employees and many had reported concerns about safety and quality, “but raising these concerns had been discouraged.” 5. To be fair, Boeing owned up to the responsibility for the safety lapse. At the same time, if we ran the correlation analysis, it would be interesting to see the relationship between quality defects and diversity hiring. Boeing and Spirit Aerosystems have promoted and spent millions of dollars on their DEI programs. Based on Spirit's self reported data, whites made up 74% of the workforce in 2020. Following pandemic layoffs and DEI rehiring initiatives, whites declined to 48% of the workforce.by the end of 2021. More generally, there is no question that companies have begun to pull back on DEI initiatives. What do you all think? Is there a correlation between these programs and quality? Sign up for our weekly newsletter for additional insights: https://lnkd.in/eDYjDrbq

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Have you ever considered how Rolls-Royce sells its vehicles? (Not through vehicle exhibitions.) They began to display at private jet exhibitions. The reason is straightforward. A £300,000 automobile is an impulse buy if you've been looking at planes all afternoon. It's the same as putting the candy next to the counter. Would this ever be taught in a marketing class? Most likely not. That is the problem with marketing. You must be always thinking, continuously learning, and continually watching. What’s a crazy marketing strategy that you have heard of? You might consider following me, Het Parekh, as I continue to share useful stuff. #finance #business #linkedin

Ford's CEO, Jim Farley, has given a refreshing and transparent view of the world in an interview with the Free Press. It's great to see a CEO who is willing to be open and honest. Check out the article here: https://lnkd.in/g5v4_zWH #Ford #CEO #transparency #interview #automotivenews

Ford's CEO, Jim Farley, has given a refreshing and transparent view of the world in an interview with the Free Press. It's great to see a CEO who is willing to be open and honest. Check out the article here: https://lnkd.in/g5v4_zWH #Ford #CEO #transparency #interview #automotivenews

Ford's CEO, Jim Farley, has given a refreshing and transparent view of the world in an interview with the Free Press. It's great to see a CEO who is willing to be open and honest. Check out the article here: https://lnkd.in/g5v4_zWH #Ford #CEO #transparency #interview #automotivenews

Ford's CEO, Jim Farley, has given a refreshing and transparent view of the world in an interview with the Free Press. It's great to see a CEO who is willing to be open and honest. Check out the article here: https://lnkd.in/g5v4_zWH #Ford #CEO #transparency #interview #automotivenews

Ford's CEO, Jim Farley, has given a refreshing and transparent view of the world in an interview with the Free Press. It's great to see a CEO who is willing to be open and honest. Check out the article here: https://lnkd.in/g5v4_zWH #Ford #CEO #transparency #interview #automotivenews

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