We hear a lot of talk about transparency in the world today – whether its politicians, sports leagues and franchises, and of course, the business world. But how much transparency is there really?
With each passing day, we glean new information from leaks, rumors, social media, and even dedicated journalists, working hard to dig up the truth about how things are run and how they work.
An example of this occurred for me the other day while reading my hometown Detroit Free Press. The story was written by Phoebe Wall Howard, a business reporter specializing in automotive news.
As JacoBLOG readers know so well, Paul Jacobs and I are especially interested and invested in this space. We are constantly trying to gain a better understanding of the movers and shakers in the car industry because of their direct – and even indirect – impact on radio broadcasting.
In the dozen years or so we’ve been working the “auto beat” at CES and assorted car conferences, we’ve met, hung out with, and had meals with many car company honchos. And more often than not, they exhibit a level of candor not always present in other business sectors.
For example, you might hear them admit their company is falling behind in a particular vertical – like electrification, data, or autonomous driving. Or they’ll point to lower customer ratings as a key motivational point they’re using to jack up the performance and mindset of their workforce.
But Howard’s column on Farley’s talk to his troops the other day broke through the usual B.S. barriers that execs often put up to deflect, avoid, and obfuscate the obvious facts about their company’s deficiencies, and the challenges that lie ahead.
The headline speaks volumes:
“Ford CEO gives employees sobering data about Tesla, challenges ahead”
Sadly, the story is behind a paywall, but I’ll give you the gist. Ford CEO Jim Farley has been on the job for just over a year, but his observations about his company and his industry are worth reading. Last month, he addressed all his troops – some 20,000 employees globally – via WebEx. And it was not the normal corporate pep talk.
Remarkably, even after Googling this company “town hall,” I’ve seen no coverage outside of Howard’s Free Press article. And yet, it might be one of the most important moments of the year for an auto industry roiled by change in all tiers of their business.
In her story, Howard quotes Ryan McManus, a Ford employee from Belmont Massachusetts who works in design strategy at Ford’s Greenfield Labs in Palo Alto. McManus summed up Farley’s talk:
“It’s not a rah-rah. But it’s also not a chew-out.”
At 59, Farley doesn’t look or sound like the CEO of a global automotive company. And a glance at his Twitter page shows he tweets about as much as I do. That’s unusual for any company boss, but especially rare for a Fortune 500 company.
If he’s going to succeed in a company steeped in tradition like Ford, he’s going to have to break some china along the way. Unlike in radio broadcasting where the challengers to profitability are strewn across multiple platforms and silos, from social media to audio streaming to satellite radio to podcasts, Ford (and the other thirty or so OEMs) have an existential – but very real – threat in Tesla specifically, and its brash leader Elon Musk, personally.
JacoBLOG has touched on the outsized effect Tesla is already having on how automotive infotainment systems are being equipped in dashboards of today – and down the road.
For Ford, the impact of Tesla shows up everywhere you look – company valuation, the race for electrification, the demise of dealerships, and the crumbling status quo that powered carmakers to incredible profits for a century.
In his speech, Farley used Tesla and VW (#2 in electric vehicles behind Tesla), and newcomer Rivian (pictured) to remind Ford employees that while they’ve made progress in electrification, they are still well behind in this important race.
The passage of the $1.2 trillion dollar infrastructure bill over the weekend includes a new federal tax credit for EVs, up to $12,500. The bill also includes $7.5 billion for electric vehicles, and the all-important nationwide network of charging stations.
And this quote from Howard jumped out at me:
“The automotive industry is transitioning from the internal combustion engine (ICE) to battery electric and a shakeout within the next five years could determine who survives.”
Replace “automotive” with “radio.”
Replace “internal combustion engine” with “tower and transmitter.”
Replace “battery electric” with “digital media.”
And you can see why Jim Farley’s approach and strategic plan is so germane to the challenges radio broadcasters are facing. He’s being about as clear, direct – yes, transparent – as the CEO of a global company can be.
Tomorrow, we’ll dig deeper into Farley’s words, his style, and what he didn’t say to Ford’s vast global workforce.
Read “The Transparent CEO, Part Two” here.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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Fascinating! Thank you. Radio is essential to automotive.
You’d get 5 stars in an air check meeting today Fred!
Great post. Excellent tease. :):). Looking forward to finding out more, after the break.
Hope you’re smiling
Great post!!!! I’ve been saying that, within the next 5-10 years, transmitters will be obsolete in our business. Looking forward to tomorrow and your continued thoughts!!! Thanks!!!!!!
I’m not sure about the timing. I think those expensive hulks will still be in service – in the same way newspapers are still publishing a print edition. Digital will overshadow broadcast at some point, no doubt about it. Thanks for the comment.
Love this set up and I’m excited to get to the next part. It is true, there is so much fear around modernization and adaptation to new realities, but when it’s survival, we need to be agitated sometimes.
And I think that’s Farley’ point, Jeff. You’ve got to face the facts – and then adapt as necessary, whether you’re up against Tesla, Spotify, or SiriusXM.
What “all-of-the-above” said. This is a 24 hour “stop set” I’ll be sitting on the edge of my (car) seat waiting to hear what’s next! (Darn, you’re good. You should be in radio.)
That’s on the long side, Dave, even by radio standards. Hopefully, the payoff will be worth the wait. Thanks for hanging with me.
Interesting, and as always informative.
I wonder if there is an age correlation between automotive leaders and radio executives and further if that tracks with their willingness to recognize both industries are transitioning.
Not sure whether it’s an age thing, Paul. (You would expect ME to say that!) But it probably helps to be in touch with youth & trends, either personally or those close by (young staffers, kids).