GM Looks For a New CEO - Hunting Leadership
December 5th, 2009 |
On Tuesday, December 1st, Frederick “Fritz” Henderson, the man charged with steering America’s largest car maker away from the precipice of financial disaster, decided to call it quits. Stepping in to replace Rick Wagoneer as the beleaguered auto maker’s CEO during the restructuring phase, Henderson was quoted as saying, “over the next 60 days, we will work around the clock, with all parties, to meet the aggressive requirements that have been set by the Task Force, and to make the fundamental and lasting changes necessary to reinvent GM for the long-term.”
Perhaps Mr. Henderson understood the daunting task and sheer physical toll the restructuring phase would demand on the new CEO. 244 days after his appointment he resigned. While some sources close to the company commend Fritz’s herculean efforts during his short stint, the company is left standing in a financial hurricane amidst a relatively barren US auto market. Given the current scenario, many stake holders are beginning to wonder how GM will find the right captain to weather the storm. Here is breakdown of the major obstacles and necessary strategies to help land the right leader.
Uncle Sam
With a 60% stake in GM, the Government is by far the biggest stockholder. Given the recent public debacle of the AIG bonus scandal, it is highly unlikely that the new CEO of GM will be offered a pay scale anywhere close to the private sector. So how does a company that requires the absolute highest levels of steely resilience and business intellect in their new CEO compete with the deep pockets of the private sector? The new CEO of GM will have to be both mentally and emotionally invested in the company. A major requirement for GM’s leadership position should include a deep sense of sympathy for the US auto market and an unwavering resolve to get off the matt at nearly all costs. Essentially we are looking for the Rocky Balboa of CEO’s.
Psychology
In retrospect, perhaps Fritz Henderson was the right man for the interim job. Maybe he never intended to see the company through the long and arduous trek back to profitability, but rather simply guide them through the tough initial transition out of bankruptcy. GM needs a marathon runner. GM needs someone with nerves of steel; someone who performs best under pressure and someone who enjoys a monumental challenge. Raising GM from the dead may not be the same as putting a man on the moon, but in economic terms it is certainly in the same ballpark. The new CEO must thrive on high stakes decision making.
Organization
With the public holding a major stake in the company, the CEO search will inevitable become the subject of public domain. The process of recruiting leaders requires internal discussion and the tweezing apart of the subtle differences in character, personality, experience and overall psychology of each candidate. While the American people must be satisfied with their investment, the last thing that GM needs is a corporate version of American Idol. Organization, communication, feedback and collaboration among the decision makers selecting the new CEO are critical for the long-term success of the company. This group should go out of their way to ensure the maximum level of cooperation. From boosting internal collaboration and feedback with special hiring software to working with a PR team to ensure public satisfaction with the overall process, the selection team has their work cut out for them.
Given the obvious challenges associated with finding a new leader for General Motors, there are several advantage that GM has going forward. Despite the fact that government ownership makes CEO pay scales uncompetitive, having Uncle Sam as your backer is like having Don Corleone invest in your olive oil company. Investors, competitors and even prospective car buyers know that there is an underlying level of financial insurance at least for the time being. GM is also on the verge of producing a new breed of electric cars, like the Chevy Volt, that could potentially y revitalize the company and reposition them as a technological leader in the auto industry. Last but not least, there is a still a fighting spirit in this country, in the auto industry and in America’s deep history with our manufacturing base that may offer an intangible but powerful ally as GM’s new CEO takes the wheel on the bumpy road to recovery.
I am an aspiring writer who enjoys sharing helpful information an opinions on current events. My three favorite topics are business, technology and travel.
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