Why General Motors Will Continue to Struggle
The NYTimes shed some light today on the G.M. situation. Perhaps the greatest obstacle G.M. faces in the near future is its narrow-minded culture. Here’s an example:
“…whenever a top G.M. executive was called to appear before lawmakers in Washington, staff members would prepare a briefing binder as thick as a Manhattan phonebook and hold multiple meetings to strategize over five minutes of testimony…”
Here’s another:
“In a famous memo that circulated in Detroit during the late 1980s, Mr. Johnson complained that the company was hampered by its inability to execute.
“Teamwork has been replaced by Balkanization,” he wrote. “Our culture discourages open, frank debate among G.M. executives in the pursuit of problem resolution.”
Through the years, outsiders and even company insiders have complained about the months of study required for simple decisions, like making design changes to a bumper or headlights. “
I think one of the best moves made so far is bringing in new blood with a new CEO (Fritz Henderson) and new chairman (Edward E. Whitacre, who was previously at AT&T). Whitacre even admits he has no prior auto industry experience, but I think this is an advantage, instead of a hindrance.
The new executives at G.M. will (hopefully) have a fresh perspective. New products and technologies (cars, cell phones, etc.) can be learned, but true leadership skills are much more difficult to cultivate.
Business is still business, and I believe two things G.M. can do to ensure future success are:
1) improve execution(get things done in a fast, efficient manner)
2) understanding people (teamwork, inspiration, getting the most out of your employees, etc.).
LINK:
U.S. Takes on the Insular G.M. Culture
