Innovation Tips
...ideas for building collaborative innovation
May 2008
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In 1968, when Rene McPherson was named President and Chief Operating Officer of Dana Corporation, one of his first innovations was to throw out the 22 ½-inch-thick policy manual and replace it with a one page statement of principles.

With his relaxed and friendly operating style, McPherson inaugurated a new culture at Dana that emphasized collaboration, autonomy, and an absence of control from the top. The whole company changed—operations became leaner, morale grew stronger, people everywhere in the company took greater responsibility for quality and productivity.

After a decade of McPherson, the company was among the few featured in one of the best-selling business books ever written—In Search of Excellence.

But the culture he established eventually eroded. Control from the top gradually resumed; management launched forays into unfamiliar industries; the values and principles he advocated lost their appeal.

To the shock and surprise of an admiring public, by 2006, Dana Corporation was bankrupt.

two people talking
Fast forward to 2008 after stockholders lost their entire investment in the company. Dana has emerged from Chapter 11 reorganization. A new CEO, Gary Convis, has been recently hired. From his extensive experience as head of Toyota's North American manufacturing operations, Convis speaks of a management philosophy that could have been spoken by McPherson:

"Manage as if you have no power."

A mentor at Toyota offered those words of advice. The advice has served Toyota well—they are now widely admired as one of the finest manufacturing companies in the world.

That simple management principle will transform a culture the way that McPherson transformed Dana in the 1970's. It puts the control for key decisions in the hands of people doing the work; it encourages collaboration; it engenders a culture of support rather than a culture of control.

It will once again transform Dana.

The beauty of that simple principle is that it implicitly creates collaborative teams. People stop looking to management to make all of the key decisions and start relying on one another.

It engages people as active partners in the production of products and services. They begin to see their coworkers as allies, working together to attain mutually held objectives.

In resurrecting the Dana culture of the 1970's, Convis will likely demonstrate Aristotle's counsel to Alexander: ONE can be a very great number. As the designated new leader of Dana, his personal supportive style will begin to be assimilated throughout a company of 35,000 employees.

When those 35,000 employees develop the supportive culture that McPherson advocated in the 1970's, ONE share of Dana stock can again become a very great number.
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