
When Your Culture is Wrong
Now that General Motors is out from bankruptcy, with the US Government owning enormous amounts of the company, they’re putting out ads about reinventing themselves.
But putting out new cars is far easier than changing corporate culture. It’s slow work, thankless and worse, and, importantly for those forced to issue quarterly reports, unquantifiable. How can you measure changes in how people think? The Times of London reports:
Fritz Henderson, the carmaker’s chief executive, said that he was determined to bring about a profound culture change in the company.
He announced a flatter organisational structure, stripping out layers of management, shedding 35 per cent of the company’s salaried executives, and eliminating its regional operating structure.
Admitting that “the culture at GM has been an impediment to change”, Mr Henderson said that he and other senior managers would travel every month to meet suppliers, customers, employees and dealers.
Are these the right actions? In particular, I have no idea. But it’s remarkable for a company to admit they’re wrong, in the sense that they don’t have the capacity to rule the world because of internal dysfunctions. Just admitting that is a huge step, but certainly not enough. Many managers around the world have run up against brick walls in trying to change corporate culture.
My question: do any readers have experience with corporate culture reform attempts?
[photo: credit sxc.hu member photo_mana]
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