GM’s Fritz Henderson is trying on a paler shade of transparency over at ye olde Fastlane blog. With results that defy this blogger’s adjective collection. When asked whether the “new GM” should continue to employ the thousand authors of GM’s failure, Henderson replied with self-serving equivocation. “If I was starting a new company, which we are in fact, I would start with a blend of people that have been involved in winning businesses and outstanding people that learn from their failures. At least for me personally, I have been involved in both.” Well, isn’t that convenient? OK, Henderson, “what do you think is the most important change that needs to be made in GM’s corporate culture?” Modesty prevents even us from posting Henderson’s reply before the jump.
we need to make some important changes in our culture. at least for me, we must drive home the following concepts and behaviours every day:
1. product and customers should dominate our activities and day to day lives.
2. speed. this is not sense of urgency, it is speed.
3. risk taking: we have great people. we need to allow them to take risks and coach them accordingly.
4. accountability: results count, period. consistent with a culture that encourages smart risk taking, with speed and delegation to act, we must all feel and live with a sense of accountability.
Speed not urgency? The teeth-gnashing jokes practically write themselves. Especially when your punctuation recalls that of a last-minute sophomore essay written towards the end of a savage Adderall binge. And besides the first point (which is as obvious as business culture statements come), what is Henderson trying to say? Faster, riskier, and once more with feeling? It sounds like it’s time for someone to get some sleep.
“we must spend time on products, customers and building our brands. it has been my experience that managing problems and restructuring consumes time, actually oversubscribes time, so we must get these actions behind us so we can focus on the future.”
Yes, oversubscribes. You know, like punctuation. No time.
“I had a small amount of shares from the old GM. What has happened to them?” Henderson replies: “unfortunately, the value of gm shares is expected to be zero.” Dude, Fritz… they are zero. There’s no “expected” about it.
This goes on at some length. Henderson admits that the Volt “will not be an inexpensive vehicle in its first generation, but it will be extremely affordable relative to a tesla.” You know, like the Coda. Also, nobody wants to buy Pontiac.
But the big question in all this never gets asked. Or at least never gets moderated into the discussion. So here it is: If GM’s future is so important that Henderson doesn’t have time for “managing problems and restructuring” or punctuation, how does he have time to spout truisms, non-news and non-answers to the webchaterati? Riddle me that. Now, where did I put those black beauties?
From Fastlane:
Editor’s Note: During the chat, Fritz stated that Total Confidence would run through June. This was inaccurate; Total Confidence ended on June 1. Thank you for understanding.
Nuff said.
Apparently, GM has neither capital nor capital letters.
The two things I took away from the webchat:
1. The VE Commodore platform sedan/wagon/ute in North America is 100%, absolutely, unequivocally, with out a doubt gone forever. No more G8s are rolling down the line and GM is not ever going to move the car to another brand.
2. The Corvette is in GM’s future as a V8 RWD sports car. So no big changes there.
_
And, no company wants to buy Pontiac? Not even some Chinese company that builds vending machines or heart defibrillators?
Speaking of GM transparency, GM’s CFO was interviewed on a Cleveland radio station yesterday. He gave a bunch of generic PR puff about how the company’s management was “positive” about the restructuring efforts and how they were going to fix GM’s problems “once and for all”. Anyway, towards the end of the interview one of the DJs asked him what his salary was. He said that his current salary was $630k – and that was after taking a 30% pay cut earlier in the year.
Needless to say, this didn’t exactly sit well with any of the show’s hosts…nor anyone who called into the station after the interview was over.
It may all sound trite to TTACers but anyone familiar first hand with GM culture would see some light in Fritz’s recommends.
For example: Speed not urgency. This means that things actually move forward rather than layers of management putting pressure on their respective underlings for “results”. A whole lot of buck passing in the old GM. It is the difference between work and busy work, between effectiveness and putting on the approval seeking show, between actually working and acting as if you are.
The problem for Fritz is not what but how. Sending more and more pointed memos from on high won’t do the trick. The locals file them away and work on their excuses and alibis. I would suggest that Fritz do what army general staffs do – they have very capable “hit teams” that show up in the plants and facilities unannounced, do audits and assessments, and make changes on the spot. Take away management’s comfort zones. Make an enemy of complacency.
The VE Commodore platform in North America is 100%, absolutely, unequivocally, with out a doubt gone forever
Camaro, then?
More vagaries and double talk from a man who appears to know little more.
Fritz has no engineering education or background, nor has he lead in any operational capacity at GM or any other company. He’s a business guy and a finance guy. But GM’s finances suck, so I guess he’s not very good at that, either.
The feds put a bullet in Red Ink Rick and got Fritz to take his place. Great call guys.
Can hardly wait to see what’s next.
@ Ajla
“And, no company wants to buy Pontiac? Not even some Chinese company that builds vending machines or heart defibrillators?”
The thing is, GM fears that someone may actually buy up Pontiac, change it back into what it should have always been, and become a real competitor for Chevy. Because of this, they decided to not sell it to anyone.
I seriously still cry many tears on the inside for the lost future versions of the G8 GXP that I will no longer be able to dream about buying one day.
There’s really nothing left in that arena. The only things are a step up, such as the M5 and CTS-V. And obviously, a significant step up in price. I’d love to get a CTS-V; but even after 2-3 years of depreciation, I just couldn’t justify spending that much on a stock car.
There is no hope at GM as long as the past management is in charge. This means they need a wholesale purge of all levels of management and definitely a complete change out of the Pres,VPs and CEO. Why in the world would they stay with a losing team roster?
Yah but, it’s the same OLD GM that will prevent any of this happening.
Accountability?!
Just to prove that there is accountability at the “New” GM, former CFO Fritz needs to accept responsibility for GM’s terrible financial performance under his watch:
How did Alan Mulally manage to raise money to weather the recession while Fritz could not? How did an engineer make better finance decisions than a finance guy?
And how many times did GM have to restate earnings under Fritz? And what about GM’s absurd $30 billion non-cash loss during 2007?
He can’t even manage GM’s finances; how does he expect to run the whole company?
I cannot and will not buy a car from a socialist company owned by my socialist government and run by a socialist CEO.
This is how it is and how it will be forever and ever, amen.
Now get that creepy man off my screen, please.
“will not buy a car from a socialist company owned by my socialist government and run by a socialist CEO.”
Agreed, zoomzoom, that’s how I feel, despite the rationalizations and poli sci lectures from posters who seem motivated primarily by an overwhelming faith in obozo and all his works.
“Bigsby :
June 5th, 2009 at 1:02 pm
It may all sound trite to TTACers but anyone familiar first hand with GM culture would see some light in Fritz’s recommends.
For example: Speed not urgency. This means that things actually move forward rather than layers of management putting pressure on their respective underlings for “results”. A whole lot of buck passing in the old GM. It is the difference between work and busy work, between effectiveness and putting on the approval seeking show, between actually working and acting as if you are.
The problem for Fritz is not what but how. Sending more and more pointed memos from on high won’t do the trick. The locals file them away and work on their excuses and alibis. I would suggest that Fritz do what army general staffs do – they have very capable “hit teams” that show up in the plants and facilities unannounced, do audits and assessments, and make changes on the spot. Take away management’s comfort zones. Make an enemy of complacency.”
Bigsby +1
I would also recommend that each level of management review the next level above. It doesn’t take long to determine the floaters versus the effective managers. I introduced the concept whilst I was in the top level management in a previous employment; the results were staggering. The biggest toadie, not surprisingly, was the least effective at his position, and the person with the lowest level of formal education amongst the management (who was also a woman) was identified as the most effective member of the entire management group. What was eye-opening was how ineffective some of our much vaunted procedures were viewed, and how many brilliant suggestions arrived from the rank and file. It was a humbling experience, by any measure.
“Make an enemy of complacency” should be the new mantra at GM. Hubris and complacency are two of the more important reasons that GM is where it is.
A bit OT, but someone has a great sense of humor…
“we need to make some important changes in our culture. at least for me, we must drive home the following concepts and behaviours every day:
1. product and customers should dominate our activities and day to day lives.
2. speed. this is not sense of urgency, it is speed.
3. risk taking: we have great people. we need to allow them to take risks and coach them accordingly.
4. accountability: results count, period. consistent with a culture that encourages smart risk taking, with speed and delegation to act, we must all feel and live with a sense of accountability.”
I can’t believe it! I worked at NorthWestern Mutual and this is the same BS rhetoric they spewed before dumping all of the technical people who actually did work, in March! Accountability doesn’t extend upward to management, they are like teflon.
Does he have time to play with his little toy cars? Reminds me of “Lord Helmet” in the movie Spaceballs playing with his dolls.
“we must drive home the following concepts and behaviours”
Behaviours? That’s the British spelling. GM is American Leyland!
accountability: results count, period. consistent with a culture that encourages smart risk taking, with speed and delegation to act, we must all feel and live with a sense of accountability.
“Smart” risk taking? Live with accountability? This sounds to me like you can only do something risky if success is guaranteed — i.e. DON’T TAKE ANY RISKS.
“I would also recommend that each level of management review the next level above. ”
I worked for GM for 35 years and can tell you the quickest route to oblivion for your career path is to criticize your superiors. GM management does not tolerate comments from their underlings. Again, the only route to success for The General is a purge at the top and an outsider to run the place. Another Allan Mullally who would kick ass and take names.