Today, I read a very interesting article about GM, GM’s Chief Labors to Get Rebuilt Car Maker Into Gear, by Sharon Terlep. She talked about the new challenges CEO Dan Ackerson has been facing as the new CEO of General Motors Corporation. After taking over as CEO, he traveled to the various locations within the company to get to know the operations of the company. He worked very hard to know how and why things operated the way they did.
Know Your People and Organization
As he went to the different areas of the company, he found that each area had their own competitive advantages and disadvantages compared to the other areas. Each area had their own trade secrets they were not willing to share. There was a high level of competition between areas.
The Silo Approach
Many of these areas had to work together in some form or another, but they acted like their own separate company. Rather than work together for the good of the company, they worked for the benefit of their specific department, group, or area.
That type of an environment led each group to outspend other areas of the company. Each group desired to have the best of everything to the point that they spent money on frivolous things. They all wanted “the best of everything” for their department. This high level of competition created walls within the company. Functional groups were not willing to work with other departments or compromise in any fashion. [Read more…] about Are Your Leadership Choices Building Or Tearing Down Walls?