How Fast Can a Behemoth Change Culture?

Author: Dave Crisp

10 Nov

Giant GM is struggling to change, that much is certain. But recent reports confuse the reader about what’s really going on. Take Workforce Week for October 7 and October 19. In various ways, from the headlines to content, both articles suggest that new CEO (Fritz Henderson), named March 30 to replace the former old-style executive (Rick Wagoner), has ‘done’ the work needed to change the culture.

Depending on how you read these, the messages are puzzling. The long term HR head is replaced with a former operations executive. Layers of management have been laid off to streamline things and shake up the physical bureaucracy, but whether this shakes the bureaucratic habits of thinking and behavior that inevitably form the anchors of culture remains to be seen. HR is dropped from some key operating senior teams, but is tagged as an ‘enabler’ of the change process. Enabling from the outside?

There are suggestions that the new CEO sees the culture change as ‘done’ (or more likely sees it as having been given a momentum-driving start through his bankruptcy restructuring, which appears to have been sold to managers as ‘a gift’). There are other hints he understands it must be a continuing process. I’m skeptical of calling precipitous down-sizing a gift. For sure you can try to make lemonade from such lemons and if you look at the CN restructuring (in Les Dakens excellent new book, Switchpoints) that preceded the sort of culture change GM is talking about, you can see it is possible to make necessity work more for you than against you, but it’s still a wrenching process with some uncertainty as to what it produces.

You can also see with the CN example that it took 10 years in various stages to evolve something like the full impact on culture that GM almost certainly needs. Yes, you can make early gains, but if you assume that’s all, you will certainly fall short of what’s possible and perhaps even create a situation where culture falls back toward what it used to be. Habits take time and repetition to change.

It’s very hard to tell from reports such as this whether the people managing the new structure really understand that it takes years of stable and continuing reinforcement of consistent practices to actually change culture. Are reporters putting their interpretations on things – that change is ‘done’ or that it is ‘in progress?’ We won’t know for some time, but the reporting is worrisome.

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