THE AUTOEXTREMIST

August 18, 2010

Akerson’s “to do” list revolves around two key points, plus one.

By Peter M. De Lorenzo

(Posted 8/16, 10:30AM) Detroit. In the hand-wringing frenzy of media coverage surrounding “Big Ed” Whitacre stepping away from the GM Corp. CEO job in favor of 61-year-old Daniel Akerson last week, there were many in the media expressing “surprise” about the move, at least those in the media who hadn’t been paying attention, that is. But it shouldn’t have been a surprise at all because Big Ed made no bones about the fact that he wasn’t going to be around forever (and his home was in Texas and he wasn’t moving here, thank you very much) - and since the entire raison d’etre for GM now is to get out from under the “Government Motors” tag - the company’s focus is clearly on appeasing Wall Street and making sure the IPO that’s imminent goes off successfully and without a hitch. And Big Ed’s “interim” leanings weren’t a positive part of the plan.

Wall Street not only doesn’t like surprises, they want to know that a company’s management team that’s in place on the eve of an IPO is going to be the management team that will be there to see it through. All the way through. And that’s why the change was made. Akerson gets the CEO title on September 1 and the Chairman title when Big Ed steps completely away at the end of the year.

GM absolutely needs this IPO to go well because the entire future of the company rests on it. Until GM can get out from under the tainted “Government Motors” moniker there’s no amount of smart marketing - they have several crucial launches coming up, Chevy Volt and Cruze to name just two - from Joel Ewanick’s troops that will be able to overcome that ball and chain. That’s how crucial all of this is.

The moment the “Government Motors” tag is buried GM has a shot. Until then its future is cloudy, at best, no matter how good their hot new products are.

Much has been made of Akerson’s ball-busting tendencies, his use of “colorful” language and that his take no prisoners style is exactly what GM needs right now, blah-blah-blah, but to put a finer point on things, Akerson’s day-to-day managing will revolve around two things: Speed and Accountability.

Speed in that GM has finally – finally – begun to leave its sedentary ways to the dusty old history books and is acting like a car company that gets it, one that realizes that months of meetings and territorial posturing is not a way to bring a vehicle to market in this right now global automotive economy we live in today. And that agile decision making and the ability to marshal the company’s resources are what will allow GM to compete both here in this market and around the world. Akerson has to emphasize this speeded-up decision making and product action every day. If GM’s newfound tempo slides just a little or they ease up on the gas in the least it’s not going to go well for them. And from all accounts Akerson understands this and lives by it. I certainly hope so anyway.

As for accountability the fact that I’m even mentioning it means that I am not firmly convinced that GM is out of the woods just yet. Far from it, in fact. Oh, the right people are engaged in all the right management positions now but that doesn’t mean the entire organization gets it. Akerson would do himself – and the “new” GM – a huge favor by rooting out the last vestiges of the complacency and lack of accountability that have plagued GM’s vast “bureaucratic middle” for over 40 years now, because it’s exactly this cancerous, odorous quagmire of “not invented here” myopia combined with a stunning lack of decision-making responsibility that contributed mightily to this once-great company’s downfall into bankruptcy.

And Akerson must be absolutely ruthless in eliminating it if GM is going to thrive after the IPO.

And the plus one?

Akerson needs to make sure that Mark Reuss and Ed Welburn and their respective product teams have all of the tools and resources necessary for them to do their jobs. And then he needs to step away and stay out of the way so that they can execute the various product plans commensurate with their considerable capabilities. The fact that Akerson isn’t a “product guy” ultimately won’t matter, as long as he keeps out of the way of the people who are.

If Akerson can do all of that - without allowing his considerable ego to get in the way - this company has a shot to be great again.

If not, well, let’s just say that Akerson and the rest of GM will be hearing from me about it.

And that’s the High-Octane Truth for this week.

 

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