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Business Cycles Were Slow

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Managers focused on command and control of the labor force because on a day-to-day basis, things stayed pretty much the same. For example, the Ford Motor Company started manufacturing the Model T automobile in 1908. They kept manufacturing that same make and model of car until 1927. For 20 years, the Model T didn't change. As Henry Ford famously said, “Customers could get it in any color they wanted, as long as it was black.”

Because the speed of market changes was so slow, leaders weren't worrying about external threats to their business model. What they did last month they'd do next month. This plodding pace enabled leaders to spend their time and energy on controlling the workforce to preserve the status quo.

Cracking the Leadership Code

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