It’s 1985, and America’s last motorcycle company was in crisis. Internal and external problems had enveloped the company, including:
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Perceived low quality
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Product dumping by one major competitor
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Reduced demand for motorcycles
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An adversarial financial partner
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Influx of foreign competitors
As a result, Harley-Davidson’s employee, supplier and customer morale had reached an all-time low.
Bob Walters joined the company as Corporate Manager of Organization Development, with leadership responsibility over Quality, Training and Development, Staffing and Strategic Change Management. The company’s President made Bob's mission abundantly clear:
Bob introduced three key ideas that worked in harmony to accomplish what had been considered impossible:
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Changed internal and external thinking of Harley-Davidson as not just a motorcycle company but rather a lifestyle brand offering a unique special customer experience based on affiliation, individuality and heritage.
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Combined Six Sigma and Customer-Centered-Design to the entire value chain to create transformed design/production/sales cycles.
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Erased artificial boundaries between leadership, employees and customers to create a culture of high involvement, innovation and motivation.
“Help us think differently about our business and change the culture.”
Business Challenge
Harley-Davidson
Turnaround on Two Wheels
Client Impact
Innovative Solution
By 1989, Harley-Davidson had returned to robust profitability and was poised to offer its first IPO. Its stock has split many times; $10 invested in 1989 would be worth over $400 today. Harley-Davidson is currently the largest producer of heavyweight motorcycles in the world. In the most recent year reported, their net revenue was $6 biillion with an 18% operating margin.