Are we the only ones feeling like board-level decisions at Fortune 50 companies are trapped in a time machine? Take your pick: General Motors’ (GM) so-called “Chairman of Change,” Bank of America’s (BofA) newly hired directors, or AIG’s revolving door of leadership—each faces its own set of challenges. Yet they all share one thing in common: a vision dictated by government intervention. The result? A governance nightmare that makes even Friday the 13th seem like a family-friendly movie.
GM: The Case of the Telecom Cowboy
When it comes to old-school leadership, GM takes the crown with the appointment of Edward E. Whitacre, Jr., the 67-year-old former CEO of AT&T, SBC, and Southwestern Bell. Known as a telecom industry titan, Whitacre has a leadership style steeped in fear, intimidation, and control. According to those who worked with him, Whitacre’s management was anything but progressive. He didn’t use email or a computer until his final years leading AT&T, and his Monday morning executive meetings took place at his ranch in San Antonio, with no option to call in. If you wanted to attend, you showed up in person. As he famously put it, “Better to get everyone together, all in one place, so I can tell them what to do.” His approach was simple: follow his way or hit the road.
To suggest that Whitacre represents the kind of leadership needed for a new era at GM is like claiming former Vice President Dick Cheney epitomized peace and diplomacy.
A Step Backward for GM?
But let’s set the past aside. Now, Chairman Cowboy is tasked with turning around GM, a company that has recently emerged from bankruptcy and faces a mountain of challenges. It’s almost as if we thought we were turning a page in the company’s history, only to see that page ripped out. The government’s push for leadership rooted in experience and stability might be well-intentioned, but it overlooks the very factors that led GM to its downfall: outdated practices and a failure to innovate.
Whitacre may have excelled in one important area: navigating government regulators. During his time at AT&T, his interactions with regulators often raised questions about who was really in charge—him or them.
A New Slogan for the Obama Administration
At this point, it’s tempting to suggest a new slogan for the Obama administration: “Change We Can Believe In” could be rebranded as “Change: It Never Happens in North America,” at least not in corporate boardrooms.
Where are Jon Stewart and Stephen Colbert when we need them? This farcical situation could surely use their satirical touch.
Conclusion: A Governance Horror Story
From GM to AIG, and beyond, it seems that corporate America remains stuck in an old mindset. Despite the promises of change, the same faces and strategies are resurfacing—proving that in the world of Fortune 50 companies, change is still just an illusion.