American Dream vs. Bean Counters

The cerebral cortex (i.e. problem solving) component of the Government has shut down. The conversion of our nations’ management from a producing to a corrupt financial society has left millions unemployed, and losing their homes. As our infrastructure decays the two party government that is suppose to protect us from such mistakes continues to fail. The focus on loyalty to the party instead of to the citizens is obvious. The latest poll shows that Congress in total has a favorable rating of only 17%. We have no current means of correction. At the next election in 2012 we will be given choices between candites selected by the same two parties that have led us here. There seems nowhere to turn.


Bob Lutz, a long time executive in the automobile industry who returned from retirement to help GM through its’ recovery has written a book “Car Guys vs. Bean Counters”, The book describes the difference between product people and bean counters. Car guys love cars and take pride in the manufacturing of automobiles that are creative and give the customer pride in their ownership. Bean counters view the automobile as an object of finance that has value only by the short term money that can be extracted from it.

Although the subprime financial meltdown and high price of oil were major hits to the industry, the rise to power of the bean counters was the killing event for General Motors. The book is a detailed description of how the bean counters coming to power brought associated actions that almost destroyed General Motors. The bean counters business plan emphasized making the minimum car that extracted the most money from the customers. The car guys’ goal was to make automobiles that gave the customers maximum value for the price. As the customers were exposed to automobiles built under the bean counter philosophy they moved to other companies that gave them better value. Taking design, manufacturing, quality control and company philosophy back from the bean counters was a major milestone toward survival.

It is a great read for those who have followed the automobile industry. As I read it I was struck by how closely this story describes what we need to accomplish to manage our country. If only congress was controlled by those who love and really care about America and its citizens. This is in contrast to the current environment where decision making is under control of those who view the citizen as a financial object for exploitation. It would be great if someday we could write a book with the title “The America Dream vs. Bean Counters” that described how the US was turned around.

A key event in the resurgence of GM was the creation of an energized work force that was dedicated to creating products that please the customer. Our governance is failing miserably in this area.

It is encouraging that once the “car guys” attitude began to be established in GM the employees became re-energized and creative. There was actually plenty of talent available but it was being hobbled by the bean counter management. Perhaps this is true for congress. An approval of only 17% would certainly seem to be a legitimate reason for a change of leadership.

In discussing the tough competitive environment that the American auto industry must meet in the future Bob Lutz begins his conclusion with the following statement.

In a sense the decline, failure, and rebirth of General Motors is simply a metaphor for what is happening in the whole United States

I certainly agree.