In an earlier article, I wrote that once GM emerges from bankruptcy, it would have to change its company culture and some of what I predicted has come true. (See the Great 2009 Tsunami That Swept GM and Chrysler).

I for one am glad that GM is embracing change, if a company does not change or at least attempt change it becomes stagnant, quality of products decrease and customers turn away, which results in profit loses and sometimes bankruptcy and closings.

Ask any successful small business owner and they will tell you that constant change is the life blood of their business, and keeps them ahead of the competition. The ones who don’t well they are no longer among the buying public. Some of the areas GM will have to see changes in:

• Corporate Culture. (office politics, management and company philosophy)
• Product Development. (more attractive cars)
• Consumer Confidence. (quality)

Applying the five step process of change to GM’s survivability will be critical and how successful, will be up to GM. They will have to recognize past attitudes and techniques resurfacing that drove them to the brink of extinction and which could ultimately happen again.

1. Reemergence of Dated Attitudes, Policies and Procedures. In this step the numbers for change will be small. The workers remaining from the old GM will try to revert back to the past ways of doing things. The employees who embrace the new changes will be ridiculed, openly criticized and persecuted by whatever methods to force them to conform to the old methods of doing things and established norms.

2. Identification. As Gm moves through the process of change and a new way of doing business to be competitive globally. The forces for and against the new changes will be more identifiable. And informal groups will be formed.

3. New Life or Termination. This is the life or death of any new changes. Opponents against change will do anything to derail success sometimes intentional or unintentional. They still find it hard to change and although the rank for change has grown considerably the opponent’s ranks and strength should not be underestimated.

4. Overcoming Major Challenges. If GM overcomes the challenges from inside as well as outside the company, they still will have some opposition regardless of how small, and this group if given enough time could gain enough support to derail the company and create a major setback in some areas.

5. The New GM. At this point Gm will have overcome a lot of major challenges, during this phase they will have to evaluate some of the changes they instituted and whether they are still viable to continue. This phase is important, because they changes that are successful you want to continue with, and discard the low performing changes. They will also need to evaluate what it took for the successful changes to come about. GM will also see how past employee training of TQM, Six Sigma will be instrumental in the new company. And going forward the employees who are detrimental to their long term survival will have to be left behind.

Anthony J Jackson is a management consultant and can be reached at: ajackson@officeliveusers.com
Website: http://www.waterhouseconsulting.web.officelive.com

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