House Beat

Dec 12 2008 1:17PM | Permalink | Email this | Comments (27) |
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By Paul Deffenbaugh

I've been reading about GM a lot recently because of the proposed bailout for GM and Chrysler. Last weekend, Micheline Maynard did a great article in the New York Times (see here) about how GM swapped innovation for profits. And in Fortune magazine, Alex Taylor III wrote "GM: Death of an American Dream" (see here) about his three decades of covering the corporate giant. His conclusion? A corporate culture that fought innovation killed GM.

Clearly, the company that doesn't innovate can't survive. The builders who come up with innovative solutions today are the ones who are going to survive this economy. Those that rely on what they've been doing for the last decades will see their fortunes flash away. 

Innovation comes from a culture that encourages it, though. You can't just go to the wall and turn on the innovation spigot and fill your bucket with great ideas. 

I love innovation. I love seeing great ideas bubble up from brainstorming sessions and then seeing an entire group latch on and make that change. It is a large part of what invigorates me. But it comes with penalty, too. You have to be willing to make mistakes. Not fail, mind you. Make mistakes. 

There isn't a builder in the country right now that isn't on a high-wire. While NAHB and the Fix Housing First Coalition (see here) are fighting to get help from the federal government, there isn't a builder who can expect a government bailout. If you don't get innovative now, you'll fall of that wire. GM is about to see that happen.