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Theater Review: GM on Capitol Hill

Capitol Marquee.001The curtain rose on the congressional hearings into General Motor's ignition problems yesterday. Another performance has been scheduled for today, but with luck the show will then close.

As usual, these hearings followed a familiar plot line in the repertory of these predominantly old war horses. But a visiting cast member, new to this stage, gave a promising performance.

As is well known, Members of Congress treat these hearings as political theater in which they are the stars. There's more posturing at these events than on Fashion Week runways. 

Almost everything knowable by the time the hearing starts has already been summarized in a lengthy memo prepared by the Committee's staff. The real goal of the hearing is to show the members staring down a CEO when they're not raking her over the coals. 

But in yesterday's performance, GM's CEO played her part with exceptional sensitivity and control:

  • She sat alone at the witness table and didn't hide behind lawyers.
  • She didn't succumb to the members' baiting and remained calm and cool.
  • She repeatedly expressed regret and sympathy for the people hurt by the company's long delay in replacing faulty ignitions.
  • She didn't make execuses and explained what she is doing to answer questions like why it took so long to recall the switch, who was accountable for failing to do so earlier, and how it can be avoided in the future.
  • She announced that, in addition to hiring lawyers to find answers to those questions, she has also retained Kenneth Feinberg to address the ethical issues involved, suggesting the company won't hide behind bankruptcy protection.

This last plot point -- a novel twist in a hackneyed plot -- may lift the performance into award territory.

It indicates that GM sees this not an engineering, marketing, or financial problem, but as an ethical issue. That puts the company on the right flight path to restoring its reputation. And it suggests a storyline other companies might consider if cast in the same role.

 

  

Comments

Ethics in a a company's culture are indeed on display when customer problems are traced to leadership. This CEO's mantra, in effect that the company is moving from a "cost" culture to a "customer" culture, can signal an investment in an ethical lift. Your analysis is incisive, Dick, and it benefits from your years in the C-suite where leadership communication begins.

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