Tough Management is Good Politics
I think there are always two issues in making change: perception and reality. At times they reinforce each other and other times contradict one another.
In terms of reality, GM is a company in deep trouble, nearly bankrupt, and one that, for outsiders at least, lacks a coherent future business model. When you are walking down a road, and believe you know where it ends, and the result is not good, it is often wise to walk in a different direction. In this case the Obama administration is hoping for a new direction, a more cogent plan, and stronger leadership before it invests more taxpayers dollars. The facts of this reality are sufficient to warrant a leadership change and should not be seen as "irrespective of talent or disruptive" anymore than tanking the company might be.
The perception of tough management of taxpayer's dollars is both a strong signal and good politics. The perception of leaders being held responsible might help some bankers hear the drums beating, start to cancel their private jet orders, and shelve any new creative bonus strategies. Accountability, sharing in the pain and gain, is a tried and true American value.
Posted by: email@example.com | March 30, 2009 2:26 PM
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