Whitacre got a bureaucratic company to move quickly -- now new boss Akerson needs to create a vision

DETROIT -- Ed Whitacre's short tenure as CEO of General Motors Co. ended fast. And "fast" is what his tenure will be known for.

Decide fast, he exhorted GM's executives.

And at much of today's GM, speed rules.

New CEO Daniel Akerson, 61, is expected to continue that tempo as he prepares to take the company public.

Shortly after becoming CEO last December, Whitacre quickly overturned many of the dealership terminations from bankruptcy, changed marketing plans and shook up the executive ranks.

Another example: Before Whitacre, executives could meet for half a year trying to decide whether to build a vehicle, said Karl Stracke, vice president of global vehicle engineering.

Today, a good concept can go from product boss Tom Stephens' monthly global product committee meetings directly to the executive committee of the board for approval. Once the full board votes, engineering work can begin the next day, Stracke said.

While it's too early to conclude that Whitacre's demand for faster decision-making has taken root throughout the company, evidence is growing that GM is changing.

"Ed and the whole executive committee are making very quick decisions these days," Stracke says.

The culture issue is critical for the automaker as investors weigh whether to gamble on GM common stock, soon to be available through an initial public offering.

Perhaps nowhere have faster decisions been more important than in vehicle development.

In an interview with Automotive News last week, Stracke said product decision-making has been drastically streamlined.

At the pre-Whitacre GM, Stracke said, product decisions easily would take five months or more.

The debate, Stracke said, was characterized by numerous meetings, endless discussion, tabled decisions, more meetings and maybe an answer several months after projects were proposed.

Today, good concepts can be fast-tracked, Stracke said.

"As soon as the board decides on a [product] portfolio, that directly cascades down immediately," Stracke said. "We communicate that to everyone, and almost the next day we start to work on it."

Minivan on the horizon?

ENLARGE

At an automotive conference in northern Michigan earlier this month, Whitacre alluded to projects that might go through the new process.

He said at the CAR Management Briefing Seminars in Traverse City that GM is considering bringing a new minivan out in North America and is developing plans for new mid-sized pickup trucks.

Stracke declined to say whether those vehicles are on a fast track. But he did say that GM wants to have offerings in all vehicle segments. GM ended minivan production in 2008 and is scheduled to phase out mid-sized pickups in North America in 2012.

Whitacre also has empowered managers, including in the product segment, to hire quickly when needed, said Mary Barra, GM vice president of global human resources.

For example, she said, Stephens could hire engineers right away without red tape. Before Whitaker, there would have been layers of oversight of headcount decisions, Barra said. Even decisions on shifting senior executives are made weekly instead of taking weeks as in the past, she said.

"There's more empowerment," Barra said, but there's "also accountability that leaders must deliver with the resources they're using."

Stracke said that after GM and the U.S. Department of Energy again cosponsored EcoCAR -- a collegiate advanced powertrain engineering competition -- this spring, GM hired 12 young engineers and brought in seven interns.

Barra said the streamlining is happening throughout the global organization. In the past year, she said, 90 percent of human-resources reports have been eliminated as either outdated or unnecessary.

Suppliers see change

International Automotive Components Group, the giant interiors company owned by billionaire Wilbur Ross, has seen ample evidence of a more-nimble GM, said CEO Jim Kamsickas.

"GM has carefully aligned its internal engineering and purchasing operations, which, from our perspective, has significantly increased the speed of their decision-making," he said.

Brett Healy, CEO of sunroof maker Webasto Roof Systems, said that GM is making quicker decisions on sourcing and product development and that the production releases Webasto receives from GM are now "more stable" than in the past.

"That allows us to run our business more wisely," Healy said. "In the past there wasn't a great focus on a win-win relationship, but that's switched. They understand that everyone can get something in the end."

As for Whitacre, he's putting down his badge and riding out of town just as quickly as he arrived.

Whitacre said he never intended to stay a day longer than he had to. He said: "I see no reason to delay."

The GM that Akerson inherits

STRENGTHS
1 Strong post-bankruptcy balance sheet, large cash cushion.
2 Factories working close to capacity.
3 Experienced, talented staffs in engineering and marketing.
4 Solid global sales for economies of scale, with particular strength in China.
5 Improved supplier relations under purchasing chief Bob Socia, putting GM in line to receive critical new technology.
6 Expertise and investment in all conventional and new powertrains, including plug-in hybrids.
7 Competitive product lineup and pipeline spurred by Bob Lutz.

CHALLENGES
1 Rehabilitate image blow from bailout and bankruptcy.
2 Create clear corporate vision (comparable to Alan Mulally's One Ford strategy) while putting four surviving brands at center stage.
3 Find strong new marketing equilibrium after chaotic changes in leaders, agencies and brand pitches. Create four compelling brand images.
4 Build on strong crossovers and trucks by strengthening small cars as regulations tighten.
5 Keep production in line with real demand.
6 Keep breakeven low, even as growing profits whet workers' appetites for payback.
7 Execute successful IPO; make taxpayer whole.