GM, new culture or not? - As I See It - General Motors Corp management changes - Brief Article

To the uneducated eye -- mine in particular -- it would appear that the "new," more friendly culture at General Motors Corporation is the sole work of Rick Wagoner, president and CEO. I am told, "not so." An unnamed source (I always wanted to say that -- it sounds so knowledgeable) informed me that this new GM really started about ten years ago when Jack Smith implemented his "Run Common, Run Lean" initiative. It was this philosophy that gave birth to Rick's "Run Big and Fast" manifesto that is driving the winds of change today at General Motors.

When these facts were laid out for me it was easy to see that change in an organization as large as GM doesn't happen in one year and it certainly can't be through the sole efforts of one person. However, I'm still not willing to give up the importance of Rick Wagoner's role in perpetuating and even re-kindling that which had begun nearly a decade ago.

Although this change has occurred over a period of time, it has only been in the last few years that suppliers are beginning to recognize the cultural changes taking place within the top OEM organization.

Automotive Industries is very proud to have played a role in the recognition of Rick as a leader. It was during a week-long press event in Brecia, Italy, two years ago this month that we saw him emerge (with Jack's blessing) as the new leader of the world's largest automotive company. It was easy to see why Wagoner was the logical candidate for AI's Executive of the Year honor.

Cultural changes don't come without painful steps in the process. Because of these painful steps GM was now prepared to accept the appointments of such industry kingpins as Lutz, Divine, and Andersson. Add the move of Gary Cowger from head of global manufacturing to head of North American product development and the loop is complete. GM seems ready to roll on Rick's "cultural priorities," act as one company, stretch, have a sense of urgency and remain product and service focused.

According to my unnamed source, there is a leadership army of 400 key executives who are charged with the responsibility of cascading this cultural philosophy throughout the entire company worldwide. When the leaders lead and the team implements, success is certain.

If you review the executive rosters of the leading companies in the automotive industry, OEMs and suppliers alike, we can all pick out good leaders and not-so-good leaders (names withheld on purpose). I think we all can take a chapter from the GM book of cultural change. If we can all learn from the success of others we'll be further ahead in the long run. Why reinvent the wheel!

Over the past years there has been a great deal of supplier mistrust (and rightfully so in many cases) concerning the sharing of information with GM. I'd like to know from you if things have changed. Talking with those inside of GM it is clear that they feel the change and are much more motivated by the new culture within the company. However, most of the suppliers I talk to are leery and there is still an element of distrust.

With the proliferation of new domestics eroding big three market share, suppliers need to take the chance on the new General Motors if they are to grow their business in the traditional manner. If they are not going to embrace the opportunity to change with GM then they need to look across the seas for new customers, new markets, and new partners. It's time to give change a chance and trust your biggest customer. GM is a pretty exciting company right now --I guess it's their turn.

So what do you think? Is General Motors a regenerated company, or is it business as usual at the top OEM?

Andrew Cummins is Publisher/Editorial Director of Automotive Industries.

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