Imagine that, a new Secret formula for selling cars. I'm sure it will never catch on though.

Most people don't do the "right" things. They do the "convenient" things.

The convenient decision day in day out for GM (most USA companies for that matter) executives are short-term profit so they can get their bonuses. If they should have to leave, they got golden parachutte. Win-win situation for them.

The right thing is to produce quality products for long-term profitability. However, stock price may not be as high as possible... Your pick.

Sad but true.

To most executives, "long term" = 6-12 months. Mention years and they gawk at you until drool runs out their mouth.

Smart Asian companies have proven that long-term thinking - while returning less short term stock performance - is VERY good for long term profitability and success.

We failed to understand that and as a result we have the mess now evident.

Not to be off-track, since I started this thread, but everything you're saying translates into other aspects of decisionmaking.

What comes immediately to mind is.....school reform. I'm a teacher. Schools are doing better than they've ever done. But there is always room for improvement. However, most "reform" falls into the GM/ magic bullet/ instant results category. From phonics to whole language, no one stays the long haul and no one (I.E. administrators and politicians) never wait long enough to see the results of any changes that have been made. I've seen results that took six years to finally be significant enough to really prove themselves, but even then they weren't major enough because the change didn't go far enough (IMO).

Toyota isn't the only company operating on a long term plan. The Japanese culture operates this way. Their school system looks 20 years down the road, ours looks toward the end of the year test scores. We have no patience.

It's been my complaint about our government. Our politicians don't look 20 years down the road, they only look toward the next election. For that matter, so do the voters. We have no patience.

I don't know what, if anything, can be done to change this attitutude. Maybe I'm just really weird, but my life plans included getting a masters degree, buying a house and then long term "stages" of improvements to that house. I've finished two major changes and have one more to go in about 5-10 years. I started my retirement account at age 30 and have increased it periodically over the years. I'll retire at 58. I'm completing a second masters degree so I can start a second career after retirement.

Companies aren't like people. You don't have to make a long term plan that fits in a lifetime. You can plan for the next 50 years or 100 years. I'm sure Toyota has a 100 year plan. And that's why they spent the time and money to develop the Prius. They're looking at what people are going to be driving in 20, 50 and 100 years. They have peak oil very much in mind and they're planning for a future without oil.

And you're right. The 'get the money and get out' attitude of our domestic CEOs is what is killing some of our companies. People are losing their retirements to the "Enron plague". And our economy is suffering from the illegal activities and the bail-outs.

I don't have an answer.