By Casey Williams
MyCarData

(April 22, 2013) It’s all about leadership. As Ed Whitacre points out in his new book, American Turnaround, only GM and Chrysler ended up in bankruptcy, despite facing no different market or economic forces than other major automakers. Yet, when he was named GM Chairman immediately after the implosion, executives were blaming almost everything but their leadership. 

I recently interviewed Whitacre about his time at GM. Whitacre is no push-over.  His 17 years as Chairman and CEO of Southwestern Bell and AT&T proves that.  During his tenure, SWB went from the smallest “baby bell” to acquiring AT&T.  His method was to set a vision, choose executives wisely, give them broad areas of responsibility, and then hold them accountable.  He followed the same script when he added the CEO title at GM.
   
As he said in his book, “Management is one-hundred percent responsible for what happens to a business.  One-hundred percent.”
   
When I asked him about his leadership style during the phone interview, he jokingly replied, “I’m not sure I have any leadership.” Then continued, “It is a product of upbringing, what you learn along the way - just my own personality.  It is not out of a textbook.” 
   
Leadership is about actions.  He was well-known for showing up at factories unannounced.  Employees loved him for it.  One of my favorite stories from his book tells what happened when the Cadillac line in Lansing, MI shut down due to a minor paint issue.  Whitacre grabbed a car and drove to the factory knowing how important it was to get high-margin Cadillacs rolling off the line again.  It was a little surprising to employees working the issue to look up and see GM’s Chairman walking down the aisle.  It made a point:  Get the line running.  But, he was also there to remove barriers should they need help.
   
Good leaders know when to make common-sense decisions and stay above the clouds.
   
Perhaps the craziest activity underway was the plan to move GM headquarters from downtown Detroit to its Tech Center in Warren, MI.  Even after months as GM Chairman, Whitacre did not know about it until a week before the planned move.  Not needing another distraction, the $100 Million expense, or the P.R. disaster from moving thousands of jobs out of downtown Detroit, Whitacre simply said, “It’s over.  Shut this move down today.” 
   
He spent considerable time talking with employees at lunch, by randomly stopping by cubicles, and more famously, by showing up unannounced at plants wearing blue jeans and a sweatshirt.  He got the real story and boosted the team.  He also showed up unannounced to meet with the president of the United Auto Workers.

When the UAW chief mentioned no GM Chairman had ever stepped through his threshold, Whitacre simply said, “Well, I’m here.”  It changed the adversarial tone between GM and its workforce.
   
In the end, leadership is exhibiting behaviors others want to follow.  I’m sure Whitacre was not an easy person to work for.  However, you’d probably follow him anywhere because you know he’ll win and greatly appreciate your effort (he’s been known to remember the names of family members of security guards).
   
Despite all of this, former GM executives have criticized Whitacre for not being a “car guy." Not true — he has pretty good taste in cars.
   
“My first car was a 1951 Chevrolet,” said Whitacre.  “I had a Pontiac LeMans in the ‘60s.  Loved that car!  Now, I have a Cadillac CTS-V sedan.  It’s the second one I’ve owned and won’t be without one.  My wife has a CTS wagon.  We also have a Suburban, Cadillac XTS, and GMC Pickup.  I grew up with GM.”
   
While his place in history will recall the helm of AT&T, we car guys appreciate his efforts to get GM back in gear.  He didn’t do it alone – many others fought the battle with him.  Yet, when GM needed a firm hand, common-sense leadership, and a sincere appreciation for hard-working employees, it got the right guy. 
   
“Treat people like you like to be treated, recognizing most people want to be involved and make a difference,” said Whitacre.  I suspect that sentiment will ultimately be his legacy.