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dispatches from the new world of work

Go Mike ...

Mike (Neiss, not Porter) gave us a fabulous Comment on GM ... which I deemed worthy of a center-column Post-status.

Thanks, Mike!

"Oh boy ... now this is a topic! First, let me explain that I have seen GM from the inside and from the outside. As a baby boomer, many of the folks I worked with as we were making our way up the ladder in that old traditional corporate model, are now running the place. I have seen great talent at GM. Skip LeFauve comes to mind. Jerry Hirshberg is another. And Tom, we can't forget Pat Carrigan. And let us not be too quick to blame the union. Some pretty good leaders there over the years, Leonard Woodcock, Doug Fraser, Irv Bluestone. And in a much too oversimplified statement, even with all these smart people, they created their own problem. My goodness, while I was there Toyota handed over the entire Toyota Production System model as part of the NUUMI project. They can never say they didn't know. What they can say is that they never had the courage or the stomach to do the hard stuff. Sure they cherry picked shop floor management, JIT, SPC, standardized work ... etc. I remember Dr Deming telling us at a management meeting that the head of Toyota wasn't afraid to share their 'secrets' with us because we couldn't even see what we needed to see and besides 'GM management will never do it.'

"Rick Wagoner is another example of finance whiz kid elevated to CEO. I like his personality better, but I can't help but think this is Roger Smith repackaged with a bit more tact. I am a huge supporter of being a responsible steward for the business when it comes to managing costs, but it ain't the whole enchilada. As a matter of fact lean and operational excellence are part of their problem. Can you really reduce design to numbers? Well, sure you can, it is called market share. But you can't reduce it to numbers short term. Jerry Hirshberg left Buick and went and started a cool little organization called Nissan Design Institute ... and introduced the Infiniti line, the Altima, and his last car, the 350 Z. Read Jerry's account of design at GM in his book 'Creative Priority.' You'll understand GM much better. I have always wondered whether it was a coincidence that Jerry left Nissan (he was retirement age) about the same time Ghosn showed up. Once in awhile GM has deviated from the accountant running the car company story. Bob Stempel was a car guy. Bob didn't have a chance trying to clean up for Roger Smiths mess in a tough economy. What is Bob doing today?? Oh, just running his new company producing hydrogen fuel cells.

"Look, I feel bad for my friends and colleagues at GM. But I don't feel sorry for them. They forgot design, they forgot the customer, they forgot R&D, they forgot they are a car company. Their demise was clearly a choice. Not a symptom of our economy, but a choice made in the boardroom at GM. I for one, don't think Ghosn will matter at GM. He's a cost cutter. Wagoner does that pretty well. It's the last gasp of a drowning company.

"My one hope is that they will be a case study for all those organizations hoping to become as big as GM. The big just crash harder."

(Mike has long been associated with the Tom Peters Company and occasionally Posts here; for some reason he was overcome by shyness, restricted himself to a Comment, and therefore I guess I've got to do it for him!—TP)

Tom Peters posted this on 07/19/06.

Comments

Mike, you rock!

Posted by cathy mosca at July 19, 2006 10:59 AM

Mike,

Thank you for your post. Regarding Ghosn, I think it's pretty unfair to say he's just a cost cutter. In France he's nicknamed "le cost killer" and he's always hated that. Look at what he's done in Nissan: his first move was to recruit the outrageouos designer Nakamura from Isuzu Motors to rejuvenate the look of the Nissan cars. He understands the importance of Design more than anybody. Plus, I saw him in a Bloomberg last week, and he has absolutely no intention to take Wagoner's place. It's already too difficult for him to be the CEO of 2 big car manufacturers at the same time (Renault and Nissan). He clearly said that GM's problems will have to be solved by GM management. The only benefits of this potential triple alliance would be the synergies in purchasing, manufacturing and the best practice sharing.

Posted by Samir at July 19, 2006 5:15 PM

Thanks Samir. I certainly did not mean to imply that Ghosn is "just a cost cutter". He has done some very good things for Nissan. However, I am challenged to come up with any winning designs from Nissan since he took over. Certainly he was well after the Altima and the Maxima. The new QX from Infiniti has been pretty roundly criticized for design and quality. And Samir, the thought of the three of them sharing best practices leaves me a little cold as well. What do any of the three lead the automtive world in that others would look to as best practices? Samir, I give the man his due, but will admit I am often skeptical of "celebrity CEO's". Thanks for the pushback.

Posted by Mike Neiss at July 19, 2006 7:40 PM

Mike - congratulations.

Unlike many people on this Blog (me particularly) you always post such a wonderfully balanced opinion based on your experience - I like your style. As a fellow â€˜baby boomerâ€™ I would love to think one day I will grow up too and think more about engaging my brain before opening my mouth or should I say â€˜hitting the keysâ€™ :-)

The sun is wonderful again in England and we are struggling to come to terms with this heat wave

Posted by Trevor Gay at July 20, 2006 6:01 AM

Trevor, I thought Mike's Post was ... Loaded for Bear. It had the air of un/ir-refutability (I think there's such a word). Balanced? Well done, but a Very Pointed View. As was his recent rejoinder on Ghosn, about which I agree 100%.
(The guy did an amazing job of acculturization in the world.s toughest environment--and used said acculturization as a smokescreen for viscious (necessary) cost cutting. Image: Ghosn sitting on a meditation mat in traditional Japanese garb--using his Samurai pen to sign a doc cutting another 10,000 jobs.)

Posted by tom peters at July 20, 2006 6:38 AM

It's so true we can not or do not want to be in a position to tackle the others even though they want to tell us what they did to succeed. In Oz we have this guy Brad Sugars who gladly tells everyone the secrets of business... "Brad why do you give the secrets away with such ease?" ask his assailants, "Easy, most will not act on them even though they know them". Too true, Remember, never look a gift horse in the mouth!

Cheers
Steve Gray

Posted by Steve Gray at July 20, 2006 6:59 AM

INFINITI [Nissan] - love the design of le QX4 - learn from the creative way ISRAEL is designing the new MidEast [low IQ Annan as lapdog] ...

Posted by sean at July 20, 2006 8:25 AM

I would be happy if the so-called TURNAROUND MANAGERS thought a lot more about augmenting REVENUE STREAMS rather than focus on CUTTING COSTS!!! Well, maybe its perception but I DO feel & believe that BUSINESS MANAGERS should focus more on the positive side of the business rather than the probable side!!!

And for those of you who thought turnaround management was all about STRATEGY, I would like to draw your attention to a wonderful quote by Prof. Gary Hamel who once coined the term STRATEGIC CONVERGENCE which he used to explain the limited scope of the strategies being used by rivals in greatly differing circumstances.

Bottom-line = EXECUTION! Period.

Posted by K.Sriram at July 20, 2006 10:07 AM

Great post Mike! I worry that GM is merely the tip of the iceberg of companies that are spending so much time trying to cut costs and "grow top line" that they are forgetting what made them successful in the first place.

Though I'm in a different industry, I see some parallels with what is happening here in terms of focusing so much on the internal that we're forgetting the external. Even more concerning, I'm not sure that there is a plan for applying the internal changes to making the external customer experience any better. Cut costs, increase margins and sell, sell sell!!!! But at what price.

Posted by Andrew Hayden at July 20, 2006 10:14 AM

Oh, THAT 350Z... (insert snicker here...)

Posted by Mike H. at July 20, 2006 5:03 PM

Tom - love the image of Mr Ghosn on the meditation mate with the Samurai pen ... brilliant!

The other image I see;

A poster in every office and on the production line saying; 'If morale does not improve the sackings will continue'

Posted by Trevor Gay at July 20, 2006 6:24 PM

"If morale does not improve - you'll be forced to read [Simplicity]."

Meanwhile Trevor perpetuates the myth that HE IS the 5th Beatle - sad really but true.

Posted by sean at July 21, 2006 8:54 AM

purchase viagra from canada Fascinating post. I loved (the great) W. Edwards Deming's comments. Here's a favourite Deming quote:

"Support of top management is not sufficient (to achieve sustainable performance improvement) - obligations cannot be delegated by senior managers; action is required. If you, the senior management can't come, send nobody."

Posted by Michael from UK at July 21, 2006 9:02 AM

Hi Sean â€“ Actually I did have a 'Beatle hat' when I was kid in the early 60's but sadly the myth of me being the fifth Beatle went, along with my hair, in the 80's.

Friday afternoon Simplicity advice to those males among us who are folically challenged - Go Bald gracefully!!! Get over it!!!

Posted by Trevor Gay at July 21, 2006 9:19 AM

My big concern is Ghosn is not a one off! For me he is however iconic of the sterility of a big slice of contemporary management.

GM lost it's balance. Systems suffocated the passion. Cautious, process policemen lost sight of the dream... and therefore their courage evaporated.

buy viagra generic online australia I believe GM (in it's current form) needs to die. V. sad for the human beings involved, however - It's an evolutionary process. The fit will adapt and survive.

Business fitness = Systems + Passion. Forget the "soft" stuff (aka "outsource" it to HR) at your peril.

There is no risk free way to greatness in any arena... sport, military, politics ... why should business be different? Built to last - Don't make me laugh. Study Darwin for 5mins.

Posted by Chris at July 21, 2006 9:37 AM

Andrew,

So good to see you here. On a completely nonrelated item, I still don't have the cat project quite engineered. Been thinking about having wind generators provide the power for the exhaust fan. --smile==

I am fascinated, and somewhat dismayed about your comments. It strikes me that sometimes there are "celebtity" companies as well as celbrity ceo's. Just because you get phenomenal press doesn't always make it so, huh? I trust you are doing well and hoping your company is tapping your great talent to help reimagine. Best Andrew....Mike

Posted by Mike Neiss at July 21, 2006 1:22 PM

GM's problem is it trying to be a car company. It is not. Pontiac, Saturn, GMC, etc. are the car companies. GM is in reality more of a private equity firm.

If given the chance I'd bet all I have and then some on the following actions:

generic viagra online canada First, turn and attack from my weakest point: legacy pension and healthcare costs. GM is in a unique position to carve a profitable niche out of the multi-trillion dollar retirement services market. Especially if they leverage thier labor union relationships. Make women secure and happy and the rest will follow.

viagra for women in australia

Second, divide my assets and drive them relentlessly into the face of the competition. Anyone who gets "the slows" or tries to turn back will be sold off or left to die.

GM needs a gunner from the private equity world more than Ghosn.

Posted by Tom Coffin at July 21, 2006 2:02 PM

Thanks Trevor...ask my wife, I don't always think before I talk! Always a pleasure to read your contributions.

Posted by Mike Neiss at July 21, 2006 6:51 PM

Tom Coffin...I couldn't agree more....GM is really GMAC. The shared platform idea robbed the brand os their identity. I suspect we could see GM sell off brands one by one...(too late for Oldmsmobile) Thanks for the comment

Posted by Mike Neiss at July 21, 2006 6:53 PM

I'd be curious everyone's ideas would be about the legacy cost issues.

Thanks

Posted by Tom Coffin at July 22, 2006 11:36 AM

"Go Bald gracefully!!!" - Trevor - now with the bald socialism - look where it got the pattern bald Frenchman Zidane's - biggest game of his life and a lousy bald head shave job - and he butts with it drawing more close up attention! :>} TG - you'll finally be happy when you've subverted the whole TP site ...

Posted by sean at July 22, 2006 3:42 PM

Hi Sean - Bald is the new young look - balding rebels taking over :-) and 'We'll keep the red flag flying here!

Posted by Trevor Gay at July 22, 2006 4:52 PM

OPEN & le Tour Trevor - fun Sunday - ABT - anybody but Tiger - pulling for Mr. Els and/or Sergio!

Once Floyd Landis gets his titanium hip - then he'll really be FAST - 98% Execution ... 2% titanium!

Posted by sean at July 22, 2006 5:04 PM