The intervention was supported by the management of Ford Company
because of the manager's interest in the improvement of the information system
in the organization. Ford Company had to build capacity in their workplace to
the purpose of increase in the sustainability of the company in the targeted
market. Before the intervention, Ford management decided to reject anything new
and foreign to focus on company’s own capabilities and strengths. Before the intervention
of systems thinking (ST) in Ford, the company invited Daniel Kim, Russell
Ackoff, and Peter Senge to get detailed information about systems thinking (ST)
and its implementation in the organization for the increase in profitability.
Ford Company was capable to secure a high-profit margin, produce
remarkable outcomes, and a better communication system in the organization
before the intervention of systems thinking (ST). After the intervention of
systems thinking (ST), workforce faced many challenges and issues concerning
with energized existing mental models and new languages. Although, champions of
systems thinking (ST) projects moved outside the organization which was also a
reason behind this real-world problem (Seligman,
2005). The paper will discuss the situation at Ford motor company before
and after the intervention of systems thinking (ST). Paper will also elaborate
on the effectiveness and success of the intervention for Ford Motors
Company.
Analysis of Ford Motor Company Automaker company
In this section of the paper, detailed information about the system
thinking, Edison project, and practitioners of Systems Thinking with associated
challenges, success factors, and capacity building by systems thinking are presented.
Analysis section also consists of information about the results of such efforts
and sustainability-related outcomes.
1)
The Systems thinking at
of Ford Motor Company Automaker company
According to the information shared in an article, Ford introduced
systems thinking (ST) at Ford workplaces and organizations to integrate all
information system working in Ford. Systems thinking (ST) was supported by the
managerial staff of Ford because they were focused to reanimate the company's
quiescent but vigilant immune system. A
team of 6 to 8 people working on the system improvement project decided to implement
a new system known as systems thinking to encourage mental models to think
differently about problem generation, solution, and articulation (Vemuri & Bellinger, 2017). The project
team also took the support of mentors and teachers to understand cognitive
abilities and thinking patterns to begin a new journey of systems thinking (ST)
in Ford Company.
The systems thinking (ST) concept was introduced in the company as
management was focusing on modification of a behaviour towards the solution of problems
and challenges. According to an article, many people working in the Ford
factory areas are engineers who are taught in the Newtonian paradigm. Thus
these people have limited information and expertise for non-linear systems
thinking. Systems thinking (ST) was then presented to enable employees
deconstructing problems and change in the thinking models (ZENIUK, 2019).
2)
The Edison Project
of Ford Motor Company Automaker company
Fragmented IT infrastructure of Ford Company was critically
reviewed and evaluated in 2003. The project was named as Edison Project because
of its purpose to shed light on complexities linked with data transferring
process, warehousing system, and building new workplaces for Ford Motors
Company. In the shared network serves, Ford Company was facing issues in the
integration process. Additionally, in use, IT infrastructure was quite time
consuming and costly which was required to change or modify. In this project, the
team has a better understanding of issues developed an accurate picture of IT
infrastructure to identify and highlight the major weaknesses of network
servers working for customers and types of applications developed by employees.
Stock and flow computer models and Causal loop diagrams were used as supportive
thinking tools by the Edison project team.
Additionally, a new shared server was developed for the
improvement of IT infrastructure without blaming a problem or fixing an
existing problem. According to the information shared by Seligman in a research
article, Edison project team also identified and introduced three major themes related
to the successful integration of the project. The project team concluded that the
new system can be developed for applications and IT infrastructure through
improved technology in assembly line processes and factory based operations. The
first theme was technology in this scenario. While on the other hand, the
second theme was adoption.
The second theme was linked
with the first theme as it was about the adoption of technology for various
business and operational processes. In this theme, customers were encouraged to
introduce and implemented their owned infrastructure after the primary
identification of their willingness towards software applications and system
integration. The Edison Project has significant importance in the history of
Ford Motors Company as it had the objective of improvement in the customer
interaction and experiences with IT infrastructure by removal of barriers. The
second theme was a source to work on this organizational objective or goal. Adoption
of the right technology and improvement of integrated servers through the
reduction in the complexities linked with application system could generate a positive
impact on the relationship between customers and IT department of Ford Motor
Company.
While the third most important theme identified by the Edison
project team was named as the network effect. In this theme, the project team presented
their views about the need for network effects understanding and consecutive
advantages for the customers of the company regarding infrastructure defragmentation.
Thus, after clear understanding about cost and benefits of these themes project
team was capable to take appropriate decision for changes in the IT
infrastructures. Research and website based articles written on Edison project
of Ford Motor Company also stated that the prime attention behind Edison
project was to increase the speed of EV (Electric Vehicle) development (Buss, 2017). Ford’s practitioners of
Systems Thinking and the challenges
At the time of systems thinking intervention, only a small band of
practitioners were working on the projects of Ford Company’s systems thinking. These
practitioners had the duties of analyzing the existing thinking models in the
company and identifying the gaps for improved thinking models. However, most of
these practitioners were working on the small projects and behind the scene
rather than working on the front with an active team of ST experts.
Furthermore, to give sense they all shared of being medieval monks
preserving the arts and sciences through the Dark Ages. In 2001, situation of
systems thinking (ST) was changed in a positive way as Marv Adams took
initiative for high visibility systems thinking (ST) based analysis in the
company at different levels and started speaking about a wider range of audience
about what they learned from the execution of project and management experiences
earned from the small IT operational projects. During this time practitioners also
used tools including causal loop diagrams (CLDs) and presented benefits of
systems thinking (ST) in a big picture form.
These benefits were dependent upon two major decisions. The partial
benefits were caused by causal loop diagram use in the systems thinking (ST)
projects. Although, remaining partial benefits were caused by this big picture
of systems thinking (ST) community. The community of systems thinking (ST) was
working on public projects more than private and internal projects of the
company. Moreover, in accordance with the shared information by secondary article,
practitioners were also interested to start the increase in the IT community of
the company throughout the selected period of time.
4)
How did they achieve
success, if they ever did?
Ford Motors Company achieved success because of improved
strategies and efforts of managers. The project team worked on the
simplification of the infrastructure and network servers to improve services. Complexity
could draw negative impact on the customer experiences and IT infrastructure. Various
research and studies have identified complexities to be addressed. Thus in the
light of these, it is clear that project addressing all these complexities will
further be improved for the ease of customers and IT staff.
Dynamic system tools specially designed for internal programs of the
computing infrastructure was commissioned by a research study which was focused
on defragmenting. At that time, systems thinking (ST) had also many changes required
for the purpose of successful completion. However, apart from all these overall
project outcomes were decreased as unanticipated obstacles were removed.
Additionally, the decrease in speed of program working also projects
unsuccessful experience of systems thinking (ST). The limited success of this
project or systems thinking were caused by many additional factors including
integration and computing environment.
5)
State of Ford’s capacity
for Systems thinking (how it was built and who was involved?)
The
management of the Ford Company was looking forward to enhancing the capacity of
the production section and other processing areas to control increased time and
cost. Moreover, systems thinking (ST) could provide them with support to
accomplish goals for sustainable development in the competitive market. Ford
capacity for systems thinking was developed by the introduction of new
infrastructure and mental thinking models. There were two major goals were
developed in the support of ford’s capacity for systems thinking (Williams, 2010). The goals are enlisted
below:
a)
Replace existing mental models with modern mental models
b)
The second goals are linked with the spread of awareness about ST
basics.
6)
Who were Ford’s
partners in building Systems Thinking Capacity?
According to the Bremer
(2016), Ford Motor Company worked collaboratively with many specialized team
members and experts of systems thinking to enhance the capacity of Ford Company (BREMER, 2016). Russel Ackoff was also a mention who
presented give major points about the implementation and details of systems thinking
(ST). Moreover, Mark Bertolini and Ray Anderson also worked as partners in
building systems thinking capacity. Ray used the ecology of commerce to
transform interface into an environmental friendly company and increased
sustainability.
7)
Were there any
takeaways from the experience?
The systems thinking capacity was introduced in Ford motor company
that worked for the improvement of services provided by the company. Having
worked with the intact teams is important to leverage that considers different policies,
procedures and processes. The whole process is designed efficiently to address
the requirements of the company. In Ford motor company, it is often considered
that the sources are under the immune system and work with the deep structures.
The system resists the changes, reward system, financial priorities, appraisal
system, and management development strategies. When it comes to taking away the
experience from the experienced workers of Ford motor company there is no
better opportunity as compared to learning from the direct experience in Ford Company.
In the case of Ford motor company, the worker experience MAP that
is multidisciplinary action projects and it can be used to develop real
breakthrough (Seligman, 2005). There are
different corporation facts of an organization such as history, traditions and
services that can be accessed by the workers in Ford motor company. The workers
and experienced members of Ford Motor Company are overwhelmed from the number
of changes and all the improvement programs. The services are developed to
satisfy and increase the skills of workers.
The individuals do not have enough time, commitment and energy to
commit the programs alone. The demand for experience is exceeding the capacity
due to large scale initiatives. There are some difficulties in getting
initiated to implement the guidelines. The services are under the power sources
and all workers are connected by a strong relationship. The process enables us
to recognize how complex the system was for the workers. The workers operating
the complex system have choices to learn more or to take high leverage changes
that make a difference in both categories (Vemuri
& Bellinger, 2017).
8)
Evaluate the end result of Ford Motor
Company Automaker company
Very often it is observed that many of us working in system
thinking and organizational learning community face certain types of
frustration. This frustration is related to creating sustainable communities
and the corporate environment in the company. The workers and experts of Ford
motor company were also facing such kind of issues. In order to reduce their
efforts and overcome the challenges, the management introduced practising
system thinking that enables to gain an understanding of dynamics of the
system. One of the best benefits of practising system thinking is to deal with
incontrovertible issues and to develop an integral part of Strategies for Major
corporations. In this process, the network effect was developed to benefit
infrastructure defragmentation and analyses the change in business that affect
services provided by the company. Implementing system thinking improves the
power of thinking under a system approach and to generate IT environment for
the workers to progress.
Implementation of the new system was to deal with limits to
success and induce a positive impact on the leverage point in the system. The
system enabled the Ford motor company to develop the capacity of working
efficiently. The system is further connected to applications and services
unable to implement policies and measurements to improve the services. The
model helped the management to identify cost impacts, the position of the
business more clearly, developed to an understanding about the benefits
regarding the change in the system, and help in building trust between
customers and information technology providers in Ford Motor Company.
Eventually, there was an increase in the rate of adoption of
systems thinking capacity. The system was beneficial to propose change and how
it can be overcome by using different tools in the wider system. On the basis
of analysis, it can be concluded that the systems thinking was beneficial to
overcome the challenges and thinking process in the companies (Vemuri & Bellinger, 2017).
Conclusion of Ford Motor Company Automaker company
The whole discussion concludes that Ford Motor Company was looking
forward to identifying opportunities for expansion and increase in capacity.
Increase in capacity could provide Ford financial benefits. Various partners
including mentors, teachers, professionals of other organizations and
researchers worked collaboratively to present new thinking system and mental models
for the future operations of the company. Systems thinking also created
problems and issues for the company but also improved customer interaction with
the IT infrastructure. Analysis and evaluation concluded that decision was a
successful decision. However, we can consider this project success oriented but
at a limited extent as it increased some new challenges but also resolved many
previous issues faced by customers about application complexities and improper
integration of the network servers. The new proposed plan for the
infrastructure improvement and capacity enhancement was based on three major
themes which includes technology, adoption of technology, and network effects. Analysis
conclude that network effect can have several benefits and advantages.
References of Ford Motor Company Automaker
company
BREMER, M. (2016). Systems
Thinking and Leadership for Our Times. Retrieved from
www.leadershipandchangemagazine.com: https://www.leadershipandchangemagazine.com/systems-thinking-and-leadership-for-our-times/
Buss, D. (2017). Ford
Creates 'Team Edison' To Accelerate Its Efforts in Battery-Electric Vehicles.
Retrieved from www.forbes.com:
https://www.forbes.com/sites/dalebuss/2017/10/02/ford-creates-team-edison-to-accelerate-its-efforts-in-battery-electric-vehicles/#6f8ae2e04a8d
Seligman, J. (2005).
“Building a Systems Thinking Culture at Ford Motor Company”. The Society for
Organizational Learning Journal, 6(4-5), 1-41.
Vemuri, P., & Bellinger,
G. (2017). Examining the Use of Systemic Approach for Adoption of Systems
Thinking in Organizations. Systems, 5(3), 43.
Williams, B. A. (2010).
Creating and Maintaining and Efficient "Buid Ford Tough" Learning
Organization: The Evolution of Organizational Success. Proficient: An
International Journal of Management, 2(5), 30.
ZENIUK, N. (2019). LEARNING
TO LEARN: A NEW LOOK AT PRODUCT DEVELOPMENT. Retrieved from thesystemsthinker.com:
https://thesystemsthinker.com/learning-to-learn-a-new-look-at-product-development/