During a GM video conference meeting, General Motors Co. chairman and CEO Dan Akerson made it a point to address the recent leaks of sensitive company information. Regarding the matter as a breach in ethical behavior, Akerson said, "It's unfortunate when those among us don't live up to those standards. If you don't want to play by the rules, then you ought to work somewhere else. We have the right to expect that people will behave with integrity. And when they don't, we can't tolerate it, and we won't."
Regarding Marketing exec Joel Ewanick's costly $559 million deal with Manchester United, Akerson said that the leaked reports were, "almost verbatim what happened. That is unfair to anybody whether you think he's right, wrong or in-between."
What's more, Akerson noted that another employee had filmed the interior of a brand new truck and had posted the image on the Internet. "That hurts us. That helps the competition" Akerson said. "We have to stop leaking in this company. It's an act of treason - it really is."
In an attempt to discourage further leaks, Akerson announced that all employees will be required to sign a document called "Winning With Integrity," which holds all employees accountable for their word.
Other than employee integrity, Akerson is also concerned about GM's corporate structure and a lack of proactive effort to respond to issues as quickly as possible. Akerson noted that GM has a total of 30 doorlatches while Toyota's structure of only five allows execs to be much more approachable to assembly line laborers. What's more, GM has a total of 23 data centers while other companies range from two to four.
Looking to simplify the company, Akerson emphasized on two points: "It's easier to ask for forgiveness than permission. Just do it... We're a global company that operates as small, little fiefdoms. That's got to stop."
Despite the multiple deeply rooted challenges, the new GM remains financially sound. Akerson points out that GM has enjoyed 10 straight profitable quarters worldwide and has posted $17 billion in profits since the company emerged from bankruptcy in 2009. Providing a personal vote of support, Akerson has purchased 25,000 shares of company stock at a total cost of $508,750. In total, Akerson owns 272,838 GM shares.
What's usually a good sign that a stock is worth investing? When the CEO of the company is betting his own money on the company's success.
[Source: Detroit News]
