(Mike Jackson featured on the left during better days at GM.)This controversial column was written by Mike Jackson, a former GM executive regarding the marketing efforts of the auto giant. Jackson took a lot of flack about his no holds bar analysis about GM. Now while Jackson comments focus on GM, many critics believe his comments could apply to a number of automotive and non automotive companies. Recently, the new GM (post-bankruptcy GM) invited dealers, suppliers, analysts and key individuals in the media, including JeffCars.com, to view some of their "fresh looking" rides scheduled to hit the road over the next twenty-four months. This group also included a select group of disgruntle non GM customers, too. Based upon the sales success of Chevy's Malibu, Caddy's CTS and Buick's Enclave, for the most part, we think you'll be impressed with GM's upcoming line up. Here's a reprint of Jackson's commentary, which was written while GM was in bankruptcy.......
If a new and vibrant General Motors is to emerge from the ashes of mismanagement and neglect, it must change its culture radically. The company intends to focus on developing vehicles that consumers want, but the new GM also must have a leaner, fresher, more focused way to market those vehicles.
Much has been written about what caused the demise of GM. Most accounts fail to acknowledge that the cancer that drove the company into bankruptcy lies within the culture created by the GM lifers in the U.S. sales and marketing organization. It is a culture so bureaucratic it stifles all passion and creativity.
At GM, there is a bias against outsiders, especially those without automotive experience. But to do what is needed, GM again must look outside the organization.
Ten years ago, I was brought into GM as part of a major reorganization led by Rick Wagoner and Ron Zarrella. Wagoner was a great leader with global experience committed to lead a new GM. Zarrella was a visionary marketer committed to making GM brands relevant to American consumers.
It was a strong team. Also recruited from outside were such executives as Paul Ballew, Roger Adams, CJ Fraleigh and Debra Kelly-Ennis. We were charged with revitalizing U.S. sales and marketing efforts.
Gaining momentum
At first things went well. We earned the respect of those in the organization who embraced the vision and yearned to create a different culture. Veteran leaders such as Bill Lovejoy, Kurt Ritter and Lynn Myers provided support, guidance and experience. Under Lovejoy's leadership, there was passion and enthusiasm, and we seemed to be gaining momentum.
We were close to changing the culture and achieving outstanding business results. But when Lovejoy retired at the end of 2002, the GM lifers once again assumed control.
Immediately there was talk of returning to the good old days of a command-and-control culture in which a chosen few made every decision. Their tactics were simple: focus on getting dealers to take inventory and launch an incentive program every month. Programs such as Employee Pricing for All and Standards for Excellence infuriated the dealers and alienated consumers. Eventually, many of us who were supposed to be agents of change got frustrated and left GM and the auto business.
Change the culture
That must not happen again. With the right changes in the organization and the culture, GM's storied brands and great people can rise from the ash heap. Here are some things that ought to be done: -- Streamline the organization structure.
Get rid of the cancerous GM lifers. The new GM must be nimble and evoke emotion and passion. Have the leaders of the divisional brand teams report directly to the office of the CEO, rather than through four layers as they have done. -- Hold sales and marketing leaders accountable for revenue and profit performance. -- Change the image of the company.
For too long the image of GM — and the Detroit 3's leaders — has been one of old white guys. Diversify marketing leadership teams to reflect the organization and the face of America in 2009. -- Target young, well educated, multicultural consumers who live in the smile states and don't consider domestic brands. Build emotion into the marketing communications. -- Challenge American consumers by being inclusive and give them the cars and trucks that they want. --
Treat dealers, ad agencies, media companies and suppliers as partners, not vendors. The days of big, bad GM and the old our-way-or-the-highway attitude are over. The new GM must value and leverage its partners or replace them with partners who embody the new culture. This is not as complicated as it might seem to those who worked at the old GM.
President Barack Obama has provided a lifeline from the American taxpayer. The automotive task force is addressing the difficult and painful structural issues. The UAW and the dealers have made major concessions. American consumers have been patient and supportive. Now GM's senior leaders must seize this opportunity to overhaul the culture once and for all. With fresh leadership, a new GM will emerge and prosper.
This column was written in Automotive News, an industry trade magazine, by Mike Jackson, a former GM automotive executive. Jackson holds a key executive position with a non-automotive company in New York. Jackson is also a former Coke ad executive.
If a new and vibrant General Motors is to emerge from the ashes of mismanagement and neglect, it must change its culture radically. The company intends to focus on developing vehicles that consumers want, but the new GM also must have a leaner, fresher, more focused way to market those vehicles.
Much has been written about what caused the demise of GM. Most accounts fail to acknowledge that the cancer that drove the company into bankruptcy lies within the culture created by the GM lifers in the U.S. sales and marketing organization. It is a culture so bureaucratic it stifles all passion and creativity.
At GM, there is a bias against outsiders, especially those without automotive experience. But to do what is needed, GM again must look outside the organization.
Ten years ago, I was brought into GM as part of a major reorganization led by Rick Wagoner and Ron Zarrella. Wagoner was a great leader with global experience committed to lead a new GM. Zarrella was a visionary marketer committed to making GM brands relevant to American consumers.
It was a strong team. Also recruited from outside were such executives as Paul Ballew, Roger Adams, CJ Fraleigh and Debra Kelly-Ennis. We were charged with revitalizing U.S. sales and marketing efforts.
Gaining momentum
At first things went well. We earned the respect of those in the organization who embraced the vision and yearned to create a different culture. Veteran leaders such as Bill Lovejoy, Kurt Ritter and Lynn Myers provided support, guidance and experience. Under Lovejoy's leadership, there was passion and enthusiasm, and we seemed to be gaining momentum.
We were close to changing the culture and achieving outstanding business results. But when Lovejoy retired at the end of 2002, the GM lifers once again assumed control.
Immediately there was talk of returning to the good old days of a command-and-control culture in which a chosen few made every decision. Their tactics were simple: focus on getting dealers to take inventory and launch an incentive program every month. Programs such as Employee Pricing for All and Standards for Excellence infuriated the dealers and alienated consumers. Eventually, many of us who were supposed to be agents of change got frustrated and left GM and the auto business.
Change the culture
That must not happen again. With the right changes in the organization and the culture, GM's storied brands and great people can rise from the ash heap. Here are some things that ought to be done: -- Streamline the organization structure.
Get rid of the cancerous GM lifers. The new GM must be nimble and evoke emotion and passion. Have the leaders of the divisional brand teams report directly to the office of the CEO, rather than through four layers as they have done. -- Hold sales and marketing leaders accountable for revenue and profit performance. -- Change the image of the company.
For too long the image of GM — and the Detroit 3's leaders — has been one of old white guys. Diversify marketing leadership teams to reflect the organization and the face of America in 2009. -- Target young, well educated, multicultural consumers who live in the smile states and don't consider domestic brands. Build emotion into the marketing communications. -- Challenge American consumers by being inclusive and give them the cars and trucks that they want. --
Treat dealers, ad agencies, media companies and suppliers as partners, not vendors. The days of big, bad GM and the old our-way-or-the-highway attitude are over. The new GM must value and leverage its partners or replace them with partners who embody the new culture. This is not as complicated as it might seem to those who worked at the old GM.
President Barack Obama has provided a lifeline from the American taxpayer. The automotive task force is addressing the difficult and painful structural issues. The UAW and the dealers have made major concessions. American consumers have been patient and supportive. Now GM's senior leaders must seize this opportunity to overhaul the culture once and for all. With fresh leadership, a new GM will emerge and prosper.
This column was written in Automotive News, an industry trade magazine, by Mike Jackson, a former GM automotive executive. Jackson holds a key executive position with a non-automotive company in New York. Jackson is also a former Coke ad executive.
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