In his column in today's New York Times, David Brooks quotes from two memos by GM executives:
a brave and prophetic memo. Its main point was contained in this
sentence: “We have vastly underestimated how deeply ingrained are the
organizational and cultural rigidities that hamper our ability to
execute.”
On Jan. 26, 2009, Rob Kleinbaum, a former G.M. employee and consultant,
wrote his own memo. Kleinbaum’s argument was eerily similar: “It is
apparent that unless G.M.’s culture is fundamentally changed,
especially in North America, its true heart, G.M. will likely be back
at the public trough again and again.”
Just about smack dab between when those two memos were written, I had a long and fascinating interview with super-communicator John Onoda, who had been recruited from Levi-Strauss, where he had practically invented the concept of transparency and created one of the most forward-thinking communication operations in the world.
Alas, Onoda was initially overwhelmed and then quickly frustrated as VP of worldwide communications at GM. Early on he had hired 10 communicators from outside GM to work in the headquarters. So "thick" was the culture at GM—so thoroughly defined were the cultural mores—that Onoda told me "it was as if I had hired ten Haitians."
Onoda was gone in a couple years; no word on where the Haitians landed.
In his column, Brooks rightly concludes that restructuring and re-strategizing isn't all: "G.M.’s core problem is its corporate and workplace culture—the
unquantifiable but essential attitudes, mind-sets and relationship
patterns that are passed down, year after year."
But then he hopelessly concludes that the federal takeover of GM will make the culture only more of a quagmire. "These thickening bonds between public and private bureaucrats will
fundamentally alter the corporate culture, and not for the better," he writes.
I'm not sure I hold out a great deal of audacious hope for GM. If GM wasn't so terribly crucial to the structure of the economy, I'd probably lump it in with Chrysler, United Airlines and the Sid-and-Nancy combination of Kmart and Sears: Companies living only on their size as their irreparable reputations only worsen. Companies that should give us all a break and give up the goddamn ghost.
But I'm persuaded that keeping GM afloat—at least until the rest of the economy gets stronger and can absorb a liquidation of this magnitude—is a worthy federal effort.
And when I try to imagine GM becoming any more of a cultural quagmire than what John Onoda described to me in the late 1990s, I fail.
Hey: Maybe it's time for Onoda and his gang of Haitians to ride again.
John, are you out there?
Surely they know that social media is the answer. There are 100 social media experts following me on twitter that can make miracles happen.
Communicators can help, but they need to have strong leaders to support. Without a leader who is pushing for change, it’s a losing game. There are a few great books about this: The Heart of Change: Real-Life Stories of How People Change Their Organizations by John P. Kotter, and Good to Great, by Jim Collins.
In Collins’ language, one can conclude that GM has been in a “Doom Loop” for a long time. Here’s his description of the syndrome:
“Instead of a quiet, deliberate process of figuring out what needed to be done and then simply doing it, the [unsuccessful] companies frequently launched new programs — often with great fanfare and hoopla aimed at ‘motivating the troops’ — only to see the programs fail to produce sustained results. They sought the single defining action, the grand program, the one killer innovation, the miracle moment that would allow them to skip the arduous buildup stage and jump right through to breakthrough.”
Good communication can’t break a company out of a doom loop. Years and years of focused attention and disciplined leadership can, and communication is an important part of that.
Ron, thanks for the “Doom Loop” quote. It’s right as rain.
Seems to me they ought to hire Reuben – HE seems to be making excellent progress at changing corporate culture at his organization.
Reuben: are you out there?? I’d be interested in your uniquely qualified opinion on this post!
If GM thought it was in a Doom Loop BEFORE the government took it over . . . . . .
If GM thought it was in a Doom Loop BEFORE the government took it over . . . . . .
No, Steve, GM WAS in a doom loop before the government took over.
What’s your helpful suggestion, Mr. Crotchet?
Based on Henderson’s remarks at the June 1 press event, I’m afraid the GM pessimists are right — a string of “reinvention” cliches. And as CNBC’s Phil LeBeau pointed out, we’ve heard this from General Motors in the past. “How should the American public look at this today and say, we have confidence that this is, finally GM’s getting it right?” Unless GM starts answering that question, the company is toast.
Well, I think there is one factor that is perhaps not being considered…the massive amount of white collar layoffs…..Tens of thousands already and with 6000 more announced last monday. The culture may or may not change but the simple truth is that much of the old culture is disappearing by being shown the door. WSJ today says GM readying for top exec. changes as welll. That’s not to say a better culture replaces the one that is leaving but it is fair to say the old culture is going and you may have to consider a new post in a few months.
Well, John, that would be fantastic.
INteresting thoughts. Thanks for sharing this article.