Published: Saturday, December 5, 2009
Acting CEO says GM’s bureaucracy must go
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Paul Sancya / Associated Press
New CEO Ed Whitacre Jr. is shaking up GM’s numbers-oriented bureaucracy. In a folksy broadcast to employees, he says they’re free to take risks without fear of being fired.
DETROIT — When auto industry veteran Bob Lutz returned to General Motors in 2001 after 30 years with other companies, he quickly grew tired of GM’s numbers-oriented bureaucracy, printing up post-it notes that asked, “Says Who?”
Lutz stuck his credo on walls and bulletin boards as he publicly challenged the lumbering corporate culture.
In announcing a sudden management overhaul on Friday, GM chairman and acting CEO Ed Whitacre Jr. was speaking Lutz’s words when he told employees that the bureaucracy needs to end and they can take reasonable risks without fear of being fired.
“We want you to step up. We don’t want any bureaucracy,” Whitacre said in his folksy Texas drawl to about 800 GM workers. “We’re not going to make it if you won’t take a risk,” he said in the address, which was broadcast to employees worldwide on the Internet.
Whitacre, 68, who has been frustrated with the pace of change, appointed the 77-year-old Lutz as a top adviser, creating an alliance of hard-charging veteran executives to lead the troubled company.
The former CEO of AT&T Inc., Whitacre heads a board that just pushed out CEO Fritz Henderson after only eight months in office.
In his 45-minute speech, Whitacre, reversed several changes that Henderson made, restoring the position of North American president and rejoining sales and marketing, which had been split in two.
Whitacre, wearing a charcoal pinstriped suit, paced across a stage, encouraging workers to make changes and get things done quickly. Several times he was self-deprecating, acknowledging that he knows little about cars and would need help from workers.
Whitacre made clear he would rely on Lutz, the company’s legendary car guy, to craft GM’s future and teach him the business. “Bob, with me as a pupil, you’ve got a tough job,” Whitacre said.
Lutz’s new role ends his short stint as head of marketing under Henderson. Yet it was apparent from Whitacre’s speech that Lutz has his ear.
Saying he’s sick of ideas sitting on desks “while we wrangle,” Whitacre elevated many of the company’s younger executives. Among them were, Mark Reuss, 46, who for a short time ran engineering and was named president of North America Friday; and Susan Docherty, 47, the former sales chief, who was picked to head sales and marketing. Whitacre also named Nick Reilly president of GM’s European operations, which includes the Opel and Vauxhall brands.
The changes came so fast, though, that Whitacre didn’t even know how to pronounce the name of Karl-Friedrich Stracke, the man he appointed to head global engineering.
“If I butchered your name, I’m from Texas, you’ll understand,” Whitacre said.
Stephen Girsky, the only one of GM’s 12 board members with automotive experience, also was named a special adviser to Whitacre.
Lutz stuck his credo on walls and bulletin boards as he publicly challenged the lumbering corporate culture.
In announcing a sudden management overhaul on Friday, GM chairman and acting CEO Ed Whitacre Jr. was speaking Lutz’s words when he told employees that the bureaucracy needs to end and they can take reasonable risks without fear of being fired.
“We want you to step up. We don’t want any bureaucracy,” Whitacre said in his folksy Texas drawl to about 800 GM workers. “We’re not going to make it if you won’t take a risk,” he said in the address, which was broadcast to employees worldwide on the Internet.
Whitacre, 68, who has been frustrated with the pace of change, appointed the 77-year-old Lutz as a top adviser, creating an alliance of hard-charging veteran executives to lead the troubled company.
The former CEO of AT&T Inc., Whitacre heads a board that just pushed out CEO Fritz Henderson after only eight months in office.
In his 45-minute speech, Whitacre, reversed several changes that Henderson made, restoring the position of North American president and rejoining sales and marketing, which had been split in two.
Whitacre, wearing a charcoal pinstriped suit, paced across a stage, encouraging workers to make changes and get things done quickly. Several times he was self-deprecating, acknowledging that he knows little about cars and would need help from workers.
Whitacre made clear he would rely on Lutz, the company’s legendary car guy, to craft GM’s future and teach him the business. “Bob, with me as a pupil, you’ve got a tough job,” Whitacre said.
Lutz’s new role ends his short stint as head of marketing under Henderson. Yet it was apparent from Whitacre’s speech that Lutz has his ear.
Saying he’s sick of ideas sitting on desks “while we wrangle,” Whitacre elevated many of the company’s younger executives. Among them were, Mark Reuss, 46, who for a short time ran engineering and was named president of North America Friday; and Susan Docherty, 47, the former sales chief, who was picked to head sales and marketing. Whitacre also named Nick Reilly president of GM’s European operations, which includes the Opel and Vauxhall brands.
The changes came so fast, though, that Whitacre didn’t even know how to pronounce the name of Karl-Friedrich Stracke, the man he appointed to head global engineering.
“If I butchered your name, I’m from Texas, you’ll understand,” Whitacre said.
Stephen Girsky, the only one of GM’s 12 board members with automotive experience, also was named a special adviser to Whitacre.
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