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Archive: November 14, 2010 - November 20, 2010

'Rapid' turnarounds can be years in the making

The fundamentals of our economy and the talent of our people are strong, but it is our debt and entitlement programs that stall our recovery and long-term profitability as a nation. As with GM, rapid turnaround can come, but it will take hard choices and the courage to reset programs like social security and Medicare...

By Robert Goodwin | November 19, 2010; 2:30 PM ET | Comments (0)

When culture eats strategy

There's a tendency in struggling organizations to focus on fixing systems and processes, as if structural repairs are all that stands between current problems and success. Certainly, GM did plenty of tinkering over the years, but it wasn't enough. That's because often it's the organizational culture--the day-to-day behaviors and beliefs and attitudes of employees at all levels--that needs changing...

By John R. Ryan | November 17, 2010; 2:35 PM ET | Comments (1)

How to save a company from demise

If culture is, as Terry Deal states, "the way we do things around here;" then corporate leadership must question the underlying assumptions that drive the behaviors of those within the company. Many assumptions are unconscious and have a dramatic effect on operations; surfacing them is critical to a company's ability to change. An integrated approach to leadership means...

By Katherine Tyler Scott | November 17, 2010; 10:55 AM ET | Comments (1)

The danger of complacency

In the army, leadership is continuously cycled. Lieutenants tend to only be a platoon leader for 15 months and then become an executive officer or take another staff position. Captains command companies for no longer than 24 months. Further, any military family can relate to the saying, "Home is where the Army sends you." This consistent leadership change keeps unit atmosphere continuously fresh, preventing complacency issues like GM had...

By West Point Cadets | November 16, 2010; 10:31 AM ET | Comments (3)

Combat insularity, confront reality

Failure to confront reality doomed General Motors, as it has many other companies. When you are really big, you tend to lose the hunger for excellence that many smaller companies have. In its early days, General Motors was a formidable competitor. It understood its customers and...

By John Baldoni | November 16, 2010; 10:18 AM ET | Comments (1)

Mapping GM's decline

It was a failure of leadership as astounding and momentous as the company's early achievement. Time will tell if the newly profitable automaker has truly overcome the last three decades of its own history and created an organization as committed to brave, effective and conscientious stewardship as the one that grabbed the industry gauntlet...

By Nancy Koehn | November 16, 2010; 10:08 AM ET | Comments (2)

Prior success is a powerful narcotic

Sometimes it takes a clear threat to organizational survival to prompt a new way of doing business that is responsive to changes outside of the company. As we have seen with General Motors before the bankruptcy, sometimes even that is not enough...

By George Reed | November 16, 2010; 10:02 AM ET | Comments (1)

The 'mechanics' of leadership

Remember when Rick Wagoner flew by private jet to DC to ask for a bailout? GM's executives ignored the seemingly obvious cost-cutting measure of reducing executive pay--something Toyota enacted without government instruction. A sense of "just" compensation--legitimate or not--prevents both union leaders and executives from making the obvious decision to cut costs...

By Coro Fellows | November 16, 2010; 12:34 AM ET | Comments (1)

GM's 'arrogance' virus

They arrogantly believed that foreign manufacturers were likely to produce lesser products that the American public wouldn't purchase. That is until Toyota came along and ate GM's lunch, Honda their breakfast and European manufacturers their dinner. By the way, GM would be wise to watch out for both Subaru and Hyundai, who are as we speak nibbling on pre-dinner hors d'oeuvres...

By Alaina Love | November 15, 2010; 5:37 PM ET | Comments (3)

Too big to U-turn

A company is asking for trouble when it becomes so big, when its profits are so great, that it believes it can do no wrong. GM's woes are the woes of a company that stopped scanning the landscape to see how the industry could be changing, a company that stuck to the same old formula for success and neglected true innovation, a company that forgot that what worked yesterday won't necessarily work today...

By Yash Gupta | November 15, 2010; 3:57 PM ET | Comments (0)

Laud the White House, not Woodward Ave

A mess as big as GM's could not have been fixed this quickly without the U.S bankruptcy code that allowed GM to wipe out its debt and the millions of dollars infused into the restructured company by the Obama Administration. This took guts and calm at a time when there was no good economic news and vigorous political opposition...

By Kathryn Kolbert | November 15, 2010; 1:18 PM ET | Comments (5)

Reviving a boiled frog

It is so much easier for leaders to rally the troops in response to crisis, because the rationale for change--the "burning bridge"--is evident. But today our organizations are dealing with forces that are so dynamic and fast moving that to wait until there is proof of crisis is to respond far too late. The way that the accelerated pace of change drastically shortens response time was once explained to me in the following manner...

By Carol Kinsey Goman | November 15, 2010; 1:11 PM ET | Comments (0)

 
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