Wednesday, June 11, 2014

They fired the wrong 15 - What about their managers?


Last week, Jenner & Block released a report to the Board of General Motors regarding the recalls of defective ignition switches. This report, commonly known as the Valukas Report after its author Anton R. Valukas, outlines the results of the internal investigation.

To say that General Motors, for over a decade, failed to take significant action on the compromised ignition switches would be an understatement. The report, which describes inaction, indifference and neglect, is painful to read. The report’s own author states: "GM personnel's ability to address the ignition switch problem for over 11 years is a history of failures."

But it is the people behind the GM façade and brand that brought about this "history of failures". From everything that I have read, it seems clear to me that senior executives at the company abdicated their accountability to manage.

In my book How Dare You Manage?, I make the point that managers are accountable for the behaviour and outputs of their employees. If it goes wrong, the manager is at fault. The employee is accountable to work effectively only on the work managers delegate to them. Managers need to be aware of what their employees are working on and how successfully they are doing it. If employees cannot work effectively on what they are delegated to do, and have been coached and talked to about performance with no increase in performance, they should be removed from their role. If the employee’s manager’s manager judges the manager to have been ineffective in managing to the required results, they should be fired and removed from their role.

For instance, when back in 2002, the choice was made to use an ignition switch that did not meet GM's own specifications, was that a lower level engineer's decision? Did his or her manager approve that substandard selection? If they did, why? And if they were not aware of the selection, they were not adequately supervising the work being done.

Managers appear to have completely abdicated their accountabilities to manage, monitor and ensure their employees solved the switch problem. What the heck was the definition of management at GM and why has no manager been fired?

I understand there has been substantial turnover in the executive management at GM. It is sad there is little forgiveness and apparently misguided reprisal for the “switch fiasco” meted out on employees. Another employee trust building failure by the Executives at GM.