This presentation applies the principles of Integrative Leadership to the actions and actors in the 2008 US Auto Industry Bailout. Ultimately, you will reflect on your role as a business, law, education, public health or public policy professional in leading your city, state, country or world toward achievements for the common good.
You will learn:
1. Principles of Integrative Leadership
2. Case study critique method
3. Possible alternative outcomes through integration
2. The 6 Reasons why the Bailout was NOT Integrative Leadership
1) Influential champion
2) Authenticity
3) Backbone organization
4) Power balance among coalition members
5) Common good
6) Common language
3. Background
What happened to the economy in 2008?
Who was responsible?
How did this impact the auto industry?
What was the bailout?
Source:http://mije.org/richardprince/writers-tie-blacks-fate-auto-bailout
6. IL at the Organization Level?
Yes…
Big 3 get money and save some jobs
Government makes the deal
ultimately subsidizing UAW
compensation for $26.5 billion (More
than government 2011 foreign aid)
Big 3 salvage auto way of life and are
able to stop the bleeding?
7. IL at the Organization Level?
Yes…
Big 3 get money and save some jobs
Government makes the deal
ultimately subsidizing UAW
compensation for $26.5 billion (More
than government 2011 foreign aid)
Big 3 salvage auto way of life and are
able to stop the bleeding?
BUT…
Ford did not actively participate
Deal is reactionary, forced
City of Detroit fails to initiate
coordinated recovery response and
focus on restructuring over paid labor
costs as well as current demand for
desired automobiles
Transplant auto workers paid less
than UAW outside of Detroit are able
to sustain.
8. Was Ford a leader or defector …
YEAH... likely both… Leader?
● All three companies needed to survive the
bailout in order for the US industry to
survive?
● The supply chain of suppliers to the auto
industry is critical to the balance of the
ecosystem?
● A functioning auto manufacturing system
is important to national security?
● Ford had to support the bailout regardless
of its intention to take the help
http://www.factcheck.org/2011/09/ford-motor-co-does-u-turn-on-bailouts/
9. Was Ford a leader or defector …
YEAH... likely both… Leader?
● All three companies needed to survive the
bailout in order for the US industry to
survive?
● The supply chain of suppliers to the auto
industry is critical to the balance of the
ecosystem?
● A functioning auto manufacturing system
is important to national interest?
● Ford had to support the bailout regardless
of its intention to take the help
BUT… Defector?
● Was there deception in lobbying for the
bailout and not taking it?
● Does Ford have an unshared advantage
for not taking the money?
● Is Ford not playing fair as Ford advertising
turns against competitors for taking the
bailout?
● Ford did receive 5.9B in government loans
and lobbied for cash for clunkers
“In other words, Ford was for government bailouts before it was against them.”
http://www.factcheck.org/2011/09/ford-motor-co-does-u-turn-on-bailouts/
10. IL at the Group Level?
Yes…
Factory motor parts manufacturers
coming together to support the auto
industry by increasing production
Detroit community colleges changing
their education to focus on other
educational endeavors
11. IL at the Group Level?
Yes…
Factory motor parts manufacturers
coming together to support the auto
industry by increasing production
Detroit community colleges changing
their education to focus on other
educational endeavors
BUT…
While overall bailout supposedly
saved jobs, there were still thousands
of displaced workers
Wasn’t a coordinated effort with the
rest of the city to address poverty and
economically stressed families
12. IL at the Society Level?
Yes…
Taxpayers diffuse the impact of
corporate irresponsibility
“What’s good for Ford is good for
America.”
13. IL at the Society Level?
Yes…
Taxpayers diffuse the impact of
corporate irresponsibility
“What’s good for Ford is good for
America.”
BUT…
Taxpayers diffuse the impact of
corporate irresponsibility without a
vote
The bailout did not flow through
different levels of society. Example -
Detroit
14. What about Social ROI?
Sure?....GM Example:
● Cost: Estimated government lose on
GM alone = 11.8 billion
● Savings: Billions in social security
costs, lost tax revenue and lower
spending
o 130 billion dollars in personal
income - 1.8 million GM jobs
saved over 2 years 2009 &
2010
● Estimated net impact is a positive
$39.4 billion in bailing out GM alone.
http://blogs.wsj.com/corporate-intelligence/2013/12/09/did-detroit-
receive-americas-most-successful-bailout/
15. What about Social ROI?
Sure?....GM Example:
● Cost: Estimated government lose on
GM alone = 11.8 billion
● Savings: Billions in social security
costs, lost tax revenue and lower
spending
o 130 billion dollars in personal
income - 1.8 million GM jobs
saved over 2 years 2009 &
2010
● Estimated net impact is a positive
$39.4 billion in bailing out GM alone.
Well, Really?
● If you can calculate a social ROI on
a problem of this size should you?
● Where do the calculation boundaries
start and stop?
● How does a positive Social ROI in a
global ecosystem relate to the local
needs?
● Who are the winners and losers?
http://blogs.wsj.com/corporate-intelligence/2013/12/09/did-detroit-
receive-americas-most-successful-bailout/
16. The Money Question
Yes Money?
Was this whole thing just
about Money?
And:
Is Money …?
… the currency… ?
… of the common good?
“There’s plenty of money out there. They print more every day.” Willy Wonka and the Chocolate Factory
“Money, its a crime. Share it fairly, but don’t take a slice of my pie” Pink Floyd
17. Questions
1) Where were there opportunities for integrative
leadership to arise at the sector, organizational and
group level?
2) What could have legal, policy, education, business and
public health professionals accomplished together at
the community level in a city where the auto industry
failed?
