Harley Davidson
Introduction
When looking for an example of organizational success beyond profitability and product quality, one particular company comes to mind, Harley Davidson. The company’s longevity came into question during the sixties with increased foreign competition and poor product quality. However, in the eighties not only did executives find a way to pull the organization from the brink of bankruptcy but also managed to become highly successful with a strategy of selling an “experience” rather than a product and engaging employees in change. The organization reinvented itself through discovery of embedded loyalty to the brand and broadened its market by planning and changing strategy, operations and management around this loyalty.
Strategy
Initially, building a brand based on this customer and employee loyalty was not an automatic or obvious choice to upper management when looking at strategic planning and reorganization. It was clear that product quality was poor, production efficiency was less than sub par and profitability was unattainable under the circumstances. It was not until a group of loyal executives including William Davidson, the grandson of the founder Arthur Davidson, formed the “rescue team” (Schinwald 2005, para. 5) through a leveraged buyout and developed a clear organizational strategy and mission based on loyalty and the Harley “experience”. Through this strategy a new organizational culture was cultivated and grew, redefining what Harley Davidson stands for. This strategy remains the core of Harley Davidson’s business today.