In December, I blogged about why GM needs to reinvent itself and why a bailout will not be enough. So, when I heard that GM was planning to reinvent itself, naturally I was both excited and curious. But before we go any further, just in case any of you gung-ho readers get any wrong ideas - no, I am not taking any credit, just asking questions.
Is GM truly reinventing itself or is it merely trying to dress up its image for life after bankruptcy? Let's not be self-serving and evaluate GM's actions against the criteria for reinvention laid out in my December blog, let's just listen to GM's own words on how it intends to lead its new reinvented life and then pause to ask ourselves - symbolism or substance?
Based on reviewing a number of GM's press and video releases, GM's new identity revolves around the following features:
New GM to be built from GM's best and strongest parts
Best brands, best products (fuel efficient, world class quality, green, outstanding design)
Best in class cars and trucks
Product focussed and dedicated to customers (quality and service)
Leaner, meaner, greener, faster
While we don't need to add to the growing numbers who want to kick GM in the teeth, we don't need to be naive bystanders either. Does the agenda above suggest reinvention or does it suggest semantic symbolism aimed at placating its new stakeholders and gaining unexamined sympathy of the general public? Seems like the latter - as far as my vote goes.
Reinvention is not stitching together the best remnants of an eroding asset base that is incapable of producing relevant value for future markets. Its about transformation, about creating a new asset base capable of producing relevant value for future markets.
GM has failed on both counts. Its reinvention manifesto is totally silent on its vision of future value and future customers.
Cars and Trucks are not the only platforms for future value - or is GM declaring that it has no intention of participating in creating mass transit systems for green cities of the future?
Individual customers and families are not the only future customers - or is GM declaring that it has no intention of partnering with municipalities and local governments to help them search for longer term and sustainable transportation solutions?
Alfred D. Chandler, the noted business historian declared that essentially businesses are people. Another Alfred, Alfred Adler, no business historian, but a psychologist par excellence, advised us that in order to understand people watch their feet. The Washington Post informs us that at the Detroit Metropolitan Airport, before you reach baggage claim, a new GM auto sits on display in the airport's gift shop. Its not the much touted 2011 Volt, not one of the new GM hybrids, not even the Chevy Malibu which has got some impressive positive press. But a car that flies in the face of all claims of reinvention - the Chevy Camaro SS with a V8 engine!
A throwback to the muscle car days, an era that still maintains an eerie grip on GM's self image and its business mission. Sexy with charisma, is how Bob Lutz one of the executives most identified with GM's reinvention, recently described the Camaro. He himself drives a gas guzzling Corvette 2009, the ultimate aspiration of muscle car lovers. If businesses are people, and the people most responsible for GM's reinvention walk as described above, then all the din about GM's reinvention is exactly what it is - all hype, no hope!
Wake up, GM! For true reinvention to materialize, the caterpillar needs to become a butterfly! Time for merely being a faster, leaner, meaner, car company are over - that's just the cost of doing business, not the platform of a rejuvenated glorious existence.
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