A few days after attending a strategic-level Income|Outcome workshop, a Michelin plant manager faced unexpected news: a key brake supplier to General Motors, Michelin’s largest customer, was about to go on strike.
Thanks to the workshop, the manager immediately recalled a key scenario from the game board: unsold tires piling up in Finished Goods Inventory and no cash coming in from Receivables.
Rather than risk a cash flow bottleneck, the manager took action:
- Selling off tires quickly to reduce inventory.
- Adjusting production schedules to prevent overproduction and preserve cash reserves.
Without the workshop, the manager admitted, they would have kept producing tires, piling them up unsold and leading to inevitable cash flow problems.
What Happened Here?
Insight: The manager applied cash flow awareness from the workshop to real-world events.
Action: They sold off inventory and adjusted production schedules to protect cash flow.
Result:
- Avoided a cash flow crisis.
- Demonstrated the real-time impact of financial acumen in a fast-moving situation.
→ A rapid and appropriate response to an unexpected event is a Better Business Result!
The Program
Senior managers and executives at Michelin participated in a strategically challenging three-day program: Managing a Global Business. Teams were so engaged that they often held planning meetings as late as 11 p.m. to refine their strategies for the next day.
While the workshop did not specifically address supply chain disruptions or strikes, it heightened participants' awareness of potential risks. One manager, inspired by the simulation, vividly envisioned tires piling up on his game board and warehouses filling up due to a strike. This flash of insight led him to take immediate action.
Better Business Decisions at Michelin
In 1996, Michelin North America began using Income|Outcome across the organization to build financial acumen and improve strategic decision-making among its employees. The program was integrated into various business units, helping teams align financial goals with operational strategies and identify opportunities for cost savings and revenue growth.
Almost 30 years later Michelin North America continues to run the simulation, and continues to generate ongoing tales of 'business bravado'.
"We may need an additional 2/3 hours to digest everything. At the end this is as close as you can get to real life scenario."