Innovation Blog

“No Excuses” vs. “Nothing Can Be Done”

By Shlomo Maital

 

  Consider Hyundai, the Korean car company.  

   A decade ago, Hyundai was at the bottom of J.D. Powers’ Initial Quality rankings (defining the quality of new cars within 90 days of purchase).   Everyone knew this.   The fact that Hyundai was cheap but defective made its future as a global car brand very doubtful.

   Hyundai’s Korean managers knew this.  They did two things.  Hyundai was restyled, so that today it looks as sleek, modern and well-designed as any of its competitors.

   But they did something else.  They set as their goal, making Hyundai top-rated in the J.D. Powers’ rankings.  Not “good”.  Not “very good”.  Tops.  Better than Honda.  Better than Toyota. 

   Laughable?  Impossible stretch goal? Perhaps.   But Hyundai leadership did something else.  They insisted on “no excuses”.   There will be no acceptable excuse for anything but top quality in the manufacture and production of Hyundai motor cars — the “Accent” and the “Elantra”.     

   They did not say:  Nothing can be done.  It is impossible to achieve the quality standards of Toyota and Honda, because (a) (b) (c) (d), etc.   They said, no excuses.

   In one of the most dramatic changes in the automobile industry, here are the results for J.D. Powers’  June 2009 Initial Quality rankings:

Best Subcompact Toyota Yaris; 

       close behind:  Hyundai Accent,  Honda Fit

 Best Compact Hyundai Elantra;

   close behind:  Toyota Prius, Honda Civic.    

  If you know people who own a Hyundai, ask them if they’re happy. I have.  Chances are, the answers will be highly favorable.

    “No excuses” is a powerful part of a company’s culture.  Singapore has built an entire wealthy nation on it.   Define the best practice benchmark.  Aim for it. And accept no excuses.  It is as simple as that.