Drunk Uncle Industries

Wow, over two months since I posted last! Our beautiful daughter was born in late May, and I haven’t had a chance to write more than an email since. It’s funny to me that after following GM’s decline for years, I had to hear they went into bankruptcy from my husband’s grandmother, because I hadn’t been listening to the news while recovering from childbirth. What a crazy few months it has been for everyone.

Now I hear that GM is being allowed to put all its viable parts in a “new GM,” while getting rid of the “old GM” and all its liabilities. What a deal! Can I get the same arrangement? Do you think the government, now that it is a majority stakeholder, realizes this is the only way to make GM profitable again? What about the consequences of promising the moon to the unions for so many years, or of building shoddy cars or not thinking long-term about consumer demand? Companies who behaved like this used to fail, and that was a good and fair thing–painful but better for everyone in the long run.

The bailouts of Wall Street and the auto industry have served a purpose–to keep the world from sliding into a Depression as a result of America’s greed–but it’s all starting to look a lot like that family you know who enables their drunk uncle to continue his bad behavior so he won’t embarrass the family or have to face his inner pain. I am acutely aware of the consequences a failed auto industry would have for Michigan and the country, but I’m starting to worry that if the government keeps using magic tricks to avoid the consequences of deregulation and excess, we are going to have a much bigger price to pay down the road… or my daughter will.

On GM Management

Photo © GM Corp.

Rick Wagoner is stepping down. Chrysler is trying to merge with Fiat. Ford is laying low and putting on a brave face. My friends and family working at GM are on edge. It’s tough to watch this unfold when you know so many people who could be devastated by the likely outcome (hmm, including myself I suppose). I’m not looking to make any big preachy statements on the situation. I just find myself thinking again today about management problems. GM’s still got ‘em, big-time.

The company has had bloated management ranks for years, and when a company is tasked with laying off a certain number of workers, it’s simply not common for the dud manager in charge of making cuts to lay himself off. So, even if Dudley the manager makes good decisions about which employees under him to let go, the company is still stuck with Dudley. Dudley has kids to feed and no job prospects, and he’s not going anywhere.

I know, Dudley has a manager who can decide to lay him off, but in a crisis, Dudley’s manager is not going to remove the person taking care of the next layer of people below her. Someone’s got to manage the department and keep track of the projects in progress. Dudley stays. Dudley’s employees who had job prospects left several years ago when they saw the oncoming train. Everyone else is too stressed to do their work properly. Anyone know how to fix this? GM would like to hear from you. Please call the Renaissance Center, and ask to speak with Dudley’s manager’s manager’s manager’s manager.