1. Executive Decision Making at General Motors
David A.Garvin
Lynne C. Levesque

2. index Intro Ⅰ. Alfred Sloan’s GM : Revving up
Ⅱ. Coasting Toward Collision
Ⅲ. Getting Back on a Common Track
Ⅳ. ASB : The matrix in action
Ⅴ. The Future of GM’s Basketweave Structure
Comments

3. Intro

4. 1908 설립
태동(B.Durant) by 인수합병
구축(A.Sloan)
위기(1980년 7억6천만$ 적자)
잘못된 구조조정(R.Smith)
새로운 GM(J.Smith)
2002 대우 인수, 안정기

5. 지엠의 리더들
Durant
J.Smith
R.Smith
R.Wagoner
Larry Burns

6. Ⅰ. Alfred Sloan’s GM : Revving up
1908. Billy Durant 설립
-첫 번째 자동차 재벌그룹(복합기업)
-산업내에서 첫 번째 수직통합형 회사
(by. M&A-25개의 회사들)
=>GM culture : internal competition, duplication were tolerated and encouraged
1920 Alfred P. Sloan,Jr. 임명

7. 1. Strategy
1) Pricing pyramid
“a car for every purse and purpose”

8. 1. Strategy
2) Commitment to innovation -annual vehicle changes -high compression -overhead value v-8 engines -premium gasoline -chrome tail fins -fully automatic transmission -new financial product ‘General Motors Acceptance Corporation subsidiary’

9. 1. Strategy
3) International diversification 1925 began to exporting cars purchased ‘Vauxhall’-British vehicle firm 1929 ‘Opel’-Germen operation 1931 ‘Holden’-Australia firm

10. achievements More than one-half of the vehicles sold in USA
The first Fortune 500 ranking
1956 the first company to net more than $1 billion

11. 2. Structure
Multidivisional structure Divisions aggregated into groups. -new one in American business - reduced the nuimber of direct reports to the CEO ->CEO to focus on guiding the broad policies of the enterprise

12. 2. Structure ①Management Committee role: ultimate responsibility
-resource allocation
-spending authorities
-planning GM’s future resided
member: the top officers of the company
except Group executives
②Policy group
-policy setting
-supporting decision-making

13. Multidivisional structure
*to maintain a delicate balance *M.C., P.G ->Coordinated control in the decentralized organization

14. 3) Policy and Decision-Making Process
P.Gs 달마다 표준과 정책결정 위해 모임 -plant design, specifications, new technologies, grades for materials, labor contracts, HR pay policies... -No formal authority but, expected to carry out the policies set Senior managers, Sloan 미팅 참석, 반대의견 등 논쟁 유도 ->Senior manager들을 더 넓은 이슈로

15. 3) Policy and Decision-Making Process
As profit centers, the division developed their own plans and forecasts
Hall mark of Sloan’s GM
Analytical decision making at all management levels
“the figures did not give automatic answers to problems”
->ROI 등으로 성과 측정

16. 고위관리자가 분리된 이들을 관리하려 노력하는 희망없는 직위 되지 않도록
Results
수익증대
Balance 위해서는 환경변화 필요
Senior Management
“horns of a delemma”
새로운 조건에 닿기 위해서 관리 필요
고위관리자가 분리된 이들을 관리하려 노력하는 희망없는 직위 되지 않도록

17. Ⅱ. Coasting Toward Collision
1960s~1990s
환경변화
①increased competition
②tighter governmental regulation&standards
③proliferation of car models and platforms
-1970’s oil crisis -> fuel-efficient car
but, 빠른대처하지 못함

18. 1. Strategy 부적절한 대처 →homogenization of cars across the divisions
≫brand confusion
Revenue보다 cost에 집중
Arrogance and insularity
What was good for our country was good for General Motors, and vice versa

19. 2. Structure In the 1960s, 1970s Cost and product proliferation
→more centralized assembly division
But, not enough
Because of changes in vehicle structure
Changes+lack of cost competitiveness
=new organization with two car group
(a dacades later)
Oldsmobile
Buick
Cadillac
BOC(large cars)
Chevrolet
Pontiac
Canada
CPC(small cars)

20. 3. Policy and Decision-Making Process
1980’s reorganizaion
→slowed down decision making
by adding a new layer of required review
P.G.
-recommending
Companywide
Policies
To support
Particular
positions
Existing divisional management review
-Lining up needed votes before meetings
-Arguing over transfer prices and overhead allocaions
-Attending pre-meetings to eliminate surprises at the regular meeting

21. 3. Policy and Decision-Making Process
Larry Burns
Wagoner ≫문제 있다!!
Jack Smith
1990’s “dinosaur”
“death spiral”
“inexorable decline”

22. Ⅲ. Getting Back on a Common Track
1992 and Beyond
1992 J.Smith as CEO
P.G 없앰
2개의 Vehicle groups 폐지
M.C→five member president’s Council
Reduced the corporate staff
Closed the executive dining room

23. 1. Strategy Market share ↓↓ To overhaul processes
Reduce overlapping product lines
Eliminating similar
Often competing
Models
Developing common Sys. For product manufacturing, design and development
Speeding up
Bringing more discipline to the Decision Making Process
Streamling the bureaucracy
Eliminating the interdivisional competition

24. 2. Structure
Restructuring!
ⅠⅡⅢⅣⅤⅥⅦ①②③④⑤⑥⑦ ∴
→≫↓

26. What’s ASB?
You win by knowing when to push a little more global, and when to push a little less global. That’s the “race to the middle” and it’s a tough assignment.
-G.Richard Wagoner,Jr.
Matrix organization(J