General Motors (GM)
CEO Dan Akerson recently told The New York
Times that the automaker's derisive moniker, "Government
Motors," continues to hurt sales.
Citing an industry
survey last quarter of 30,000 car shoppers, the NYT reported that 32 percent of
respondents who opted against buying a GM vehicle did so because of the
company's federal bailout. That's an improvement over 2009, when 59 percent of
surveyed shoppers rejected GM vehicles, but it still represents a problem for
the company.
Akerson is GM's third
CEO while the auto giant operates under federal oversight, and he is still wrestling
with company past issues. Federal ownership limits executive compensation at
GM, which affects its ability to recruit what it perceives to be top
talent.
Akerson also sees GM
as "a political football" in an election year. The government is
unlikely to loosen its grip on GM until the company's stock price rises;
otherwise, U.S. taxpayers would be in for a loss on the bailout. Still, that
control irks Akerson. "I try not to let it bother me. But the fact is it
does bother me," told the NYT's Bill Vlasic.
As David Whiston of
Morningstar, an investment firm, told the Times: "It's important
for people to realize that [GM is] not done transforming themselves. It is
going to take more time to right the ship." How GM is addressing this
transformation is Akerson's job, and it is what he should focus on with his
public comments.
Or in other words,
senior leaders cannot be seen as whiners. They may raise concerns about their
organization's public challenges, but if they are seen as grumblers that makes
them seem less leader-like. That attitude also effectively licenses others
within the organization to moan. This kind of negative thinking can be
pervasive and gradually spiral in ways that damage morale.
I much prefer the
example of a CEO who owns up to issues and seeks to improve them. Take David
Cote, who became CEO of Honeywell (HON)
in 2002 when the firm was still trying to find it self after being acquired by
Allied Signal.
According to The Economist, Cote
focused on a dozen "behaviors" he wanted the company to change.
Collectively, these behaviors -- focus on customer, advocacy for change, and
self-awareness -- were called "One Hon." That philosophy, coupled
with a focus on four lines of business, has since enabled Honeywell to prosper.
Its share price is close to its all time-high. As Cote puts it, "You have
to get to the point where people say, 'This is how I do my job now.' " And
that starts with the CEO owning up to the issues.
Leadership is a matter
of personal responsibility. As much as leadership relies on others to be
implemented, it starts with the individual. The leader is accountable for his
or her own actions, and that includes public behavior. When faced with
adversity, acknowledge the challenge. Skip the "pity party" act and
focus on what you are doing to resolve the situation.
CEOs that suck it up
are leaders who people want to follow. Leaders who wallow in their misery are
the ones people are best avoiding.
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