Oh music in my ears!

At G.M., Innovation Often Suffers for Profits - NYTimes.com

Just read this one and smile:

“G.M.’s biggest failing, reflected in a clear pattern over recent decades, has been its inability to strike a balance between those inside the company who pushed for innovation ahead of the curve, and the finance executives who worried more about returns on investment.”

And then this one, which is even more scary:

“For the last half-century, virtually all of G.M.’s chief executives, including Mr. Wagoner, have come from its financial side, which has judged most initiatives based on whether they will be profitable.”

Does that not speak volumes about a total lack of understanding between Accounting (Counting Beans in your Hand) and Finance (Understanding and Embracing Uncertainty)?

One of the big learnings of my career is that finance needs to understand risk and learn how to deal with it. No risk, no reward. Playing it save all the time will kill you in the end.

Let’s hope that GM will take the fall for not living this reality. Und let’s hope that those depending on GM for their livelihood will not be punished beyond due for the incompetence of the team as a whole. Nobody that is retired on a GM pension should be left penniless, though I foresee cutbacks in their pension amounts.