While the Japanese have a well-deserved reputation for insularity, they also have a tradition of welcoming foreign guidance when it suits their purposes. W. Edwards Deming, the American management professor and quality-control expert, inspired Japan's manufacturing revolution. Wallace may even be taking his cues from the famous general. In less than a year, the Ford veteran has scrapped or altered several longstanding Japanese managerial practices. Traditionally, Japanese companies are run by hard-toiling middle managers, who engage in an elaborate process of consensus building and deliver company policy as a done deal to the board of directors.
Shareholders get short shrift, but for directors it makes life cushy.
That's not the case at Mazda any more. In effect, Wallace has empowered the board of directors to decide company strategy. And they have given a hard jerk to the steering wheel. When drivers developed a taste for sport utility vehicles, Mazda's beautiful sedans collected dust on the lots. The results so far have been promising.