Even after what most people thought were the ingredients of potential success in the GM bankruptcy scrubbing, I wasn't ready to "buy in" (of course there's nothing at this point to buy in literally, as there are no publicly traded shares). Why wouldn't all these decisions give GM a significant chance of success--namely the large reductions in:
- pension funding
- corporate debt
- dealers
- brands
- labor costs
- AND a brand new, from the outside, Chairman, CEO, and board ?????
One critical element was still missing, but it has been addressed and now I'm a believer. More than 400 of the top 1300 U.S. executives are being removed. To those not steeped in running businesses, or in turning them around, this may seem like just another cost reduction, one quite a bit smaller than the others mentioned above. But, in addition to being costly, bloated bureaucracies impair a company in many ways:
- too many layers that miscommunicate upward and downward
- too much time on their hands resulting in endless meetings
- too little focus
- no clarity in points of responsibility
- a lack of urgency
These are huge costs, not in terms of expenditures but in terms of "getting the job done". Congratulations, GM, on recognizing this issue, and good luck.
Comments