The Creative Transformation of GM

This was a short essay I wrote for a creativity class over a month ago (October 15th) well before the present foray with the American auto companies. I think the last two sentences of this post are perhaps the most potentially useful to GM. In addition, though I did not mention it in the essay, GM *could* collaborate with Tesla motors, among others to create a reasonably priced, reasonably powerful electric car. Who knows?

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Though General Motors was for many years one of the largest and most profitable automotive companies in the world, it has been on a steady decline in the latter half of the 20th century and into the beginning of the 21st. Although there are many factors which constitute and contribute to a company’s overall performance, from a customer’s perspective, it appears that a lack of creativity has stifled the automotive giant. In particular, with regard to changing demographics, environmental attitudes, and the comparatively adroit adaptation of the Japanese and European competitors, General Motors appears to be in need of a creative transformation. The creative changes listed below are in no particular order, but should be taken in concert.

Ignore the naysayers: While General Motors has been in competition with Chrysler and Ford it has also been in collusion. This is particularly true in its response to government regulation or externally imposed change. When Congress has mandated safety features or compliance with fuel efficiency standards, GM has felt it in their best interest to fortify its position with its U.S. competitors in order to oppose change and regulation. The result was, while GM stagnated and did not innovate, Honda and Toyota, assuming U.S. fuel efficiency standards would be imposed and mandated, did innovate and are now at least a decade ahead in technology and brand image. GM should ignore its traditional allies in this respect – even perhaps ignore members of its executive staff or board, and start moving of its own accord.

Nonlinear thinking: Once GM has freed itself to respond in a more dynamic fashion, non-traditional or non-linear thinking can more easily become part of its identity. GM could adopt just-in-time manufacturing methods as employed successfully by Dell computers. They could adopt more creative work practices which further encourage innovation and operational efficiency.

Go beyond traditional media: In order to refashion its brand image and build awareness for the new GM culture of innovation, non-traditional promotional methods may be useful. Ideas in this respect could include: more ads in theaters, perhaps a GM car featured in a James Bond movie, a GM amusement park ride, and perhaps a musical compilation of songs inspired by GM concept cars.

Be brave: In tandem with ignoring naysayers, GM should demonstrate a degree of corporate bravery by striving to be a leader of transportation technology. I believe the decline of the company may be attributed to a key cultural attribute: following rather than leading. It appears from a customer perspective that GM has been content to sit on its laurels and let other companies take risks and reap the rewards for the risks. GM must reenergize itself and not allow itself to be content with following industry trends. Rather, it should be the trend-maker. Bravery may also be a factor of a willingness to fail. Innovation and creativity may result in more frequent or more pronounced failures, but it is better to fail quickly and learn from one’s mistakes then to fail slowly without realizing one has made a mistake until it is too late.

Increase collaboration: GM could re-invent itself and increase its prospects for success by increasing its level of collaboration with other companies and with the customers. It is possible that GM could do something unique in car industry history by creating a new car which is the collaborative effort of one or more competitor car companies. Pooling knowledge, techniques, and resources could create something a step ahead of other competitors. Finally, GM should enlist the creativity of potential customers by involving them in the car design process. New car models could become “open-source” by allowing designs to be rendered by potential customers on the internet. The features of the car could be further customized online including colors, dash options, and financing.