Monday, July 03, 2006

Hubris - yet again GM will drag down a fabled boss

I will predict absolutely that Carlos Ghosn will not fully grasp his own limits. Further, if he does succeed in creating a "merger" of Renault, Nissan and GM, it will drag all three down. Size alone is not a problem, but when size is created by merging entities with different cultures and histories, it becomes a drag. Since neither Nissan or Renault is fully out of the woods yet, and GM is deep inside, the sum of the parts is a very weakened dinosaur.

None of us fully know what we do not know, or what we can't do. However, as we become more successful we believe that we can do anything. We underestimate the complexity of that which we do not know. We always think the other person's job or industry is easier than ours. As a result, when we take it on, we fail.

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