Tuesday’s appointment of Edward E. Whitacre, Jr. as Chairman of the “new GM” is starting to make a bit more sense after reading today’s article by Michelle Maynard in The New York Times here.
Auto Czar Steve Rattner was behind Whitacre’s appointment, according to the Times. That still raises the question: Why was a search firm needed to find him? But, let’s put that aside for now.
The Challenge of Changing GM’s Culture
When discussing the challenge of changing GM’s insular culture, Mr. Rattner said, “It’s not uncomplicated…We hope and believe that it can take place.”
If “not uncomplicated” means “lacking complexity,” then Rattner may be mistaken. Changing GM’s culture will require altering behaviors, and that is neither simple nor easy—especially when the old guard remains in charge, with a Chairman who lacks turnaround experience or a grasp on handling contemporary change.
A Reality Check for GM’s Future
This situation is shaping up to be a significant challenge from every angle. The sooner everyone faces the reality of the situation, the better.
And while that hopefully happens, could someone please put a temporary stop to those slick ads? They should not be airing until GM re-emerges from bankruptcy. The final part of the TV commercial even refers to “going back to Chapter One.” What a poor choice of words. GM is currently in Chapter 11, not Chapter 1. It’s no longer possible to go back to square one.