So, the replacement CEO at General Motors, Fritz Henderson, has himself now been ousted. If we all purchased new vehicles as often as GM has replaced CEOs in recent months the auto industry would have a lot less to worry about.
Continuity and change: this is the trade-off which leaders have to manage. Clearly at the moment GM needs more of the latter than the former. But we risk over-emphasising the impact a single leader can have. Change has to be brought about by the leadership team and by senior management generally. It is not just down to one person. Knifing a CEO gives us a story to gossip about but does not change the fundamental challenge at the company.
After Mr Henderson’s decision to sell GM’s Opel subsidiary was reversed by his board he was probably doomed. But his fellow board members would be mistaken in believing that they will rapidly make things better by putting a new person in at the top. The challenge remains the same. Difficult decisions still have to be made. There are no quick personnel-related fixes available.
Paradoxically, bringing about successful change means understanding the value of continuity.