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GM dumps seniority to find success

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Old Dec 15, 2009 | 07:03 PM
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GM dumps seniority to find success

There's a reason General Motors Co. CEO Ed Whitacre is promoting fortysomethings into top jobs:

It turns the automaker's decades-old entitlement ladder upside down. It says you don't get the next big job just because you're next in line. It prizes performance and perspective over longevity and cynicism. It rewards working to succeed over working to retire, a time-honored Detroit tradition that hastened its decline.

The dispatching of CFO Ray Young to a new job overseeing international operations, announced Monday, is only the latest move by Whitacre to reload GM's executive ranks, to accelerate its turnaround and to prepare the company to sell itself anew to would-be investors, perhaps as early as the second half of next year.

Net-net, this is just what the General needs -- fresh eyes, hungry new leadership, people less tarred by the past and more focused on a future unencumbered by the weight of GM traditions, group-think and self-justification. The art will come in the balancing -- of who to fire (as Whitacre & Co. clearly are prepared to do), who to promote from the inside, who to woo from the outside.

But everyone will know who will be held accountable -- and what's likely to happen to them should they stumble for very long. That's a dramatic cultural shift for GM, a company that, more often than not, rewarded operational failure with either a) promotion or b) multiple second chances or c) an endless litany of excuses usually intended to defend the CEO's often flawed personnel choices.

My guess is that neither Whitacre nor his fellow directors would accept a head of GM-Europe delivering five-plus years of red ink and declining market share (as former CEO Rick Wagoner tolerated). Or a continual slide in North America whatever the state of the national economy. Or perennially meager showings in Consumer Reports' "recommended" list.
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Old Dec 15, 2009 | 09:34 PM
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While good on paper..prmoting people because they are "young and fresh" has drawbacks also.
Old Dec 15, 2009 | 10:10 PM
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I'm behind promoting and paying people by the job they do. Young or old, fresh hire or 30+ year veteran, you should be rewarded for what you do and how well you do it.

Experience can be outstandingly important, but so can new ideas. The old way of thinking that seniority is everything needs to go.
Old Dec 16, 2009 | 08:58 AM
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I love it, he could even go younger.

A lot of old people are just there to collect a pay check. A big paycheck at that. They don't want to upset the balance of things because at that point in their life they just want to get through it. They are worn out and know they will have a hard time starting over. They don't care about the company like they did 30 years ago. They just want to be financially stable and retire.

A young person has energy, isn't set in their ways from 30 years ago and isn't as worried about upsetting the balance as much.
They also work a lot cheaper. Where do I apply?

Keep a few old people for a different perspective and hire/promote a lot of young people. Just make sure they are middle of the road normal and not some liberal art hippy nuts whose only goal is to make a prius everything.
(unless of course you are hiring for the hybrid department.)

Last edited by Aaron91RS; Dec 16, 2009 at 09:00 AM.
Old Dec 16, 2009 | 12:37 PM
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Originally Posted by formula79
While good on paper..prmoting people because they are "young and fresh" has drawbacks also.
Isn't this age discrimination?
Old Dec 16, 2009 | 04:01 PM
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Originally Posted by Aaron91RS
They don't care about the company like they did 30 years ago.
I think its more of a problem of trying to conduct business like they did 30 years ago=FAIL .
Old Dec 16, 2009 | 04:28 PM
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Originally Posted by 95redLT1
Isn't this age discrimination?
Yes, but then again, the reverse is discrimination also, only hiring older, seasoned folks in lieu of younger folks with the same qualifications.

Discrimination is still rampant in the workplace; it will always exist. The cases you do see are the ones where it's obvious or people have tried really hard to make a case.

What GM needs is visionaries with a plan, regardless of age, and to put people in key positions that are willing to take risks and who want to be there for the sake of furthering the automotive community.
Old Dec 16, 2009 | 08:28 PM
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Originally Posted by 90 Z28SS
I think its more of a problem of trying to conduct business like they did 30 years ago=FAIL .
Agreed, its a tough dynamic business, ergo you need to be dynamic to be effective (pretty much that case in any business).

Originally Posted by Aaron91RS
A lot of old people are just there to collect a pay check. A big paycheck at that. They don't want to upset the balance of things because at that point in their life they just want to get through it. They are worn out and know they will have a hard time starting over. They don't care about the company like they did 30 years ago. They just want to be financially stable and retire.
an inherent problem with back loading pay and benefits.

Last edited by bossco; Dec 16, 2009 at 08:31 PM.
Old Dec 17, 2009 | 03:42 PM
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Originally Posted by 95redLT1
Isn't this age discrimination?
It isn't age discrimination if the reason they do it has nothing to do with your age. If it has to do with your business habits, thoughts on company culture etc, it is just fine.
Old Dec 17, 2009 | 03:44 PM
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Originally Posted by 95redLT1
Isn't this age discrimination?
No, they're hiring people based on performance, not based on seniority.

If anything they're reversing prior standing policies that ensured only older people would hold the highest positions.

They're not saying older people can't hold these positions, just that they won't be holding them for any reason other than stellar performance.
Old Dec 18, 2009 | 07:05 AM
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Originally Posted by Aaron91RS
A lot of old people are just there to collect a pay check. A big paycheck at that. They don't want to upset the balance of things because at that point in their life they just want to get through it. They are worn out and know they will have a hard time starting over. They don't care about the company like they did 30 years ago. They just want to be financially stable and retire.

A young person has energy, isn't set in their ways from 30 years ago and isn't as worried about upsetting the balance as much.
They also work a lot cheaper. Where do I apply?
Whole lotta assumptions there. Got any data to back that up?
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