Week 1 Forum - Importance of Leadership

Week 1 Forum - Importance of Leadership - leader of GM were...

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How Rick Wagoner Lost GM After reading the other posts that were posted prior to mine, it seems that all of the other posts were focused on the positive traits that a great leader brings to an organization. I decided to go in a different direction. If a great leader can turn an ordinary company into something special, then common sense tells me that the opposite must also be true. More often than we probably think, a company that has great employees, a great product or service, and only needs leadership to make it great is destroyed or severely hampered by inadequate (or just plain bad) leadership. The article discusses a few of the reasons that General Motors was forced to reorganize and ultimately file bankruptcy in 2009, under the leadership of Rick Wagoner. From 1992-2009, Wagoner served as President, CFO, and CEO of GM. Chapter 1 of the textbook mentions that leaders must, among a number of things, be honest and forward-thinking. Many of the things that Wagoner did as the
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Unformatted text preview: leader of GM were about as “anti-leader” as you can possibly get. From 1994 to 2009, when Wagoner was forced to leave, GM saw it's market share fall from 33 percent to less than 19 percent. Yet for some reason, in 2007 his salary rose over $6 million from the previous year. During a time period where other car companies like Honda and Toyota were focusing on hybrid vehicles and increasing the MPG of their cars, GM was focusing on their pickup and SUV lines. While the recession may have been difficult on most of the car manufacturers, it seems that GM, under the leadership of Rick Wagoner, was a company with very little direction. Thankfully, the government was there to provide a bailout, both monetarily and by calling for Wagoner's resignation. http://www.businessweek.com/managing/content/jun2009/ca2009061_966638_page_2.htm...
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This note was uploaded on 02/18/2012 for the course MGMT 620 taught by Professor Pogue during the Spring '12 term at Chadron State College.

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