Verdict Still Out On CEO Mary Barra’s Battle On Corporate Culture
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General Motors CEO Mary Barra said at Fortune‘s “100 Most Powerful Women” conference recently that she is “on a mission to break down silos.” If The Detroit News‘ lukewarm reception of this news is any indication, Barra has her work cut out for her just trying to persuade the naysayers.
As The Detroit News points out, these are promises we’ve heard before from Barra’s predecessors at General Motors. Starting with Jack Smith, who attempted to globalize the brand following the demise of the Berlin Wall in 1989, all the way through Dan Akerson, who used his final Detroit News interview as CEO to advertise the reality of the General Motors culture change following the bailout, the road has been paved with good intentions.
So how does current CEO Mary Barra intend to bring about this General Motors culture shift? Through candor and tenacity, she says. She brands her predecessors as having been “too nice” in the face of the challenges of the past, with regard to the level of mediocrity and lackluster performance that they allowed while heading up the automaker. Barra states that she does not intend to lend so much leeway.
But then, as The Detroit News also points out, she’s every bit as much “Old GM” as her predecessors, having worked for the corporation since 1980 at the age of just 18.
In short, it will require not only time and effort, but also an ability to “work the crowd,” if CEO Mary Barra is going to finally deliver on the standing promises of the past.
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I haven’t been a fan of GM cars for pretty much my whole life. But the recent crop of cars from Chevy, Buick, and Caddy make me think that a real engineering change has happened in the organization. I don’t know much about “culture” but as far as the output of quality cars, they’re much better than at any other point during my lifetime.
This is the deal to anyone who is a GM watcher and knows what it really is like inside.
Lutz started the real culture change. Until Bob came there was no real change inside GM as too few people were willing to speak their mind or make waves.
Now if you look at GM you will see what Bob started and what Mary has continued I is clear in many areas where things are changed or changing.
#1 the ignition issues has empowered Mary to make moves in the culture that would never had happened before. She has been making changes that few will oppose her on as they will be shamed in the media. In a way the ignition issue will bring more change than if it had not happened.
#2 The Engineering and development has been empowered to do more of what they can do with out being told. Lutz did this with the powertrain guys first and then the sheet metal next. Other areas are also contributing to continue this empowerment of engineering and design.
#3 Lutz book Bean Counters vs. Car Guys was contributed by other GM insiders like Ed Welborn and others who supported his culture changes. These people are still backing Mary.
#4 Something has happened to the board as they have give the green light to Cadillac to give them everything and anything they want or need. Does anyone here really think that the board would have done that as recent as 2 years ago?
Now there are many other example like the coming Mid Engine Corvette and other investments that GM is making. But with that said there is still a lot of cleaning that still needs to be done. The changes will continue for much longer as it takes time.
I think from what we have seen the people as Lutz would refer to as not being the problem in GM culture are winning the war. I see nothing to stop the continued efforts but there still is much more to do.
I really do not see an outsider would be doing any better in this system. If anything Mary knows where the issues are better than anyone coming in.
I worked for a large multi-national who went through a culture change. the only way to do it is with an iron hand. The CEO must set the tone that if you are unwilling to accept and embrace the new culture, you had better look for employment elsewhere. The team must all follow the same playbook. There can be not outliers or renegades. There can be no counter sub-cultures allowed to survive for culture change to be successful
If Mary Barra has the intestinal fortitude to stay the course and fire people who will not accept and embrace the new culture, she’ll be successful. If not, she won’t.