Wednesday, June 3, 2009
My GM Survival Plan
As you know from my recent Facebook and blog postings, I have been a bit obsessed with the GM situation.
So, in the spirit of "walking the walk, not just talking the talk", I hereby submit my list of what I think GM must do - at breakneck speed - not only to flourish, but ensure survival.
1. There is only one priority - Restore consumer confidence in the GM brand. This is job one - without it, we all lose our money (and more jobs). Consumer confidence in the brand and the corporate reputation have hit all time lows. This has to be the focus - from executive level on down to dealers and the assembly line folks. This is a long term excercise and must be the focal point of the "new GM".
2. Revolutionize the culture. This might be even harder than number one, but if we regress to union fighting managment it's all over. Every single employee has to drink the Kool Aid and be part of the new GM - including dealers. A new spirit is essential and it must focus on the customer - not the pension plan or more bailout dollars. The culture must be innovative and aligned to compete in the new global realities. Pride and workmanship and quality must shine through.
3. Evangelze dealers as brand ambassadors. No more plaid jackets and gimmicky pricing. Dealers and staff are the front line for GM - they must be smart, professional and "consultative" in selling - not high priced commission types.
4. GM must re-invent marketing - especially their web site and advertising strategy. GM's web site compared to best of breed Mercedes, is a joke. The experience is dismal and does not even allow you to book a test drive online! This is 2010 - that stuff is basic! As for the millions spent on advertising, - time to hire a new agency and re-visit strategy - starting with alignment between the manufacturer/brand spending and dealer or association campaigns. We are tired of "specials " and "deals" and "rebates' - give us great ads, that tell us why we should buy the cars and simplify the price message (Benchmark Hyundai!)
5. Make global supply chain managment a core executive competency. If you cannot accurately forecast demand, and constantly overproduce and end up with high ivnentories you do not deserve a dime of tax payer money. GSCM needs to be executive mandated and drilled into product managment.
6. Deliver and experience. Exceed expecations across the board - from early online looking to dealer test drive visits to service and follow up - integrate the customer experience from top to bottom. Bring this to warranty - make it easy for us to love you.
7.Drive innovation across the organization. This is part of the cultural mandate and innovation in product planning through to retail experience is essential to win back customers. Don't confuse "no charge oil change" with innovation!
8. Stop the infighting. By now everyone has skin in the game - the unions, managment, government, dealers, bondholders, and the enitre auto eco-system. Focus on the basics and the customers - this constant internal warrring is winning you nothing.
9. Bring in some outside talent. Year over year results have proven the need for some expertise beyond "car guys". Hire some creative folks with unique skill sets in areas of retailing, product development online and web marketing - forget hiring guys from other car companies.
10. Prove you can make decisions fast. You need to demonstrate intense managment capabilities now more than ever - and truly move at the speed of light. Not everything is going to go as planned, even with the influx of new cash - so don't vascilate - make changes quickly.
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