Old White Men and changes at GM

Great blog today at MidasNation.com.  Rob Slee is a book author and blogger focused on privately held companies.  And today he took on "Old White Men" - or OWM - in his blog "Why 60 Year Old White Men are Killing America."  Telling the story about how GM management drove the profits out of suppliers while bankrupting the company, he contrasted GM's behavior with the Japanese run firms in America who partnered with suppliers to make a better product customers more highly valued.  We know who ended up with the profitable approach.

Similar to Defend & Extend management, Mr. Slee talks about "past as predicate" as he discusses older managers who keep doing what they always did, even though results keep worsening.  And how "command and control" hierarchies sucked the value out of the traditional Big 3 automakers.  His views about how OWM leaders expect a "return to the norm," creating a recipe for disaster in an ever changing world increasingly producing black swans.  His stories are an action call for all leaders to change their behavior.

According to Marketwatch.com today, "GM Hires Microsoft Exec Liddell as CFO."  Is this good, or just more OWM?  According to BusinessWeek, Mr. Liddell is 50 - which makes him 10 years shy of the minimum 60 Mr. Slee denotes for OWM.  More disconcerting was the final paragraph of his bio at Microsoft.com which claims Mr. Liddell "has completed a number of triathlons, including an Ironman and also enjoys rugby, yoga, golf and tennis."  Pretty seriously testosterone laden language - and appealing primarily to OWM types.  Like his new boss, the retired Southwestern Bell Chairman, now running GM.

Triathlon and rugby often have a way of making people Lock-in on the values of persistence, hard work and sacrifice.  Jim Collins is a rather famous triathlete who loves Lock-in.  Creativity and innovation are rarely the stuff of winners in those sports.  Of course, competing in a global marketplace with fast changing competitors who defy all rules is a far cry from any sport.  Sport analogies are usually more harmful than good in today's global marketplace, where adaptability is worth more than repetitive behavior seeking scale. 

Mr. Liddell's last boss, Steve Ballmer, is one of the 10 most Locked-in CEOs in corporate America.  Not a great mentoring for open-mindedness.  And during Mr. Liddell's 4.5 year career at Microsoft the company's big launches were the me-too, and underwhelmingly exciting, Vista and System 7 products.  Mr. Liddell didn't seem to push the innovation engine much in Seattle. 

From appearances it would seem likely he'll focus on cost reductions pretty hard --- something unlikely to make GM a success.  GM doesn't need to launch it's own version of Vista.  GM doesn't need a tough guy to whack the chicken coop hoping to get more eggs - instead just making the hens all upset.  GM needs significant Disruption - attacks on its Success Formula - with a revitalization of new product development and technology application.  GM needs an entirely new Success Formula, not just a better Defended and Extended one.

Keep your eyes on Mr. Liddell.  Perhaps he'll surprise us.  Look for Disruptions and White Space.  It doesn't seem to be Mr. Liddell's nature.  But watch.  Until then, there's no sign yet that GM is taking the right actions to make itself a vital competitor against Hyundai, Kia, Tata Motors, Honda and Toyota.

Comments

[Joseph Joel Sherman]

Adam,
I like your point that "Triathlon and rugby often have a way of making people Lock-in on the values of persistence, hard work and sacrifice... Of course, competing in a global marketplace with fast changing competitors who defy all rules is a far cry from any sport."

You can often learn a lot from a person by their hobbies and extracurricular activities. Perhaps GM should look for a person who is into an innovative sport that requires adjustment to rapid change, such as snowboarding or wingsuit flying. For a creative person, perhaps GM should find someone who dances for fun.

[adam hartung]

Great comment Joseph. Can you imagine a male executive saying in his bio he loves dancing? Yet look at the popularity of "Dancing with the Stars." Misconceptions about what skills are important today are so prevalent!