Tuesday, September 1, 2009

China takes the Lead!!!

2008 Buick Enclave photographed in USA.Image via Wikipedia

Have you read the latest about GM? Have you checked into the areas of the planet with double digit growth? If not, don't be surprised what you find and see why GM is letting China take the lead for growth of the organization every place except the US, Canada and Mexico. And why, you might ask...its growth. The status symbol for success in China is Buick. Growth of GM during cash for clunkers was down about 20% in the US and up about 75% in China. Whoa!!! Seriously, if you're running the company where do you put your investment dollars and where do you keep your nose out? Fairly obvious, isn't it. Or is it. Ford was in the positive area in the US and I think that maybe, just maybe investors should be looking at ways to increase market share here in the good old USA AND invest in those other markets. But aren't we overlooking something. Something bigger than a breadbox and so large major organizations don't see. What about diversity? The US workforce has struggled with diversity in the workplace for many years. It still doesn't have it right and still needs consultants and experts to help them out. Now add on the cultural diversity of working globally and it gets really interesting. It is no longer about the US culture dealing with other cultures. Its shifted to the US Company Headquarters people getting their arms around their Chinese colleagues' culture and diversity within that culture which will be dealing with the Opel group and the German culture and internal diversity which needs parts from Mexico to deliver a product in the US. Hmmm, fairly complicated but important to understand if GM is going to succeed globally. If GM is to be at the top of their game again they are going to need to jump in their Buick and head out on a road trip away from Detroit to understand the critical nuances of Cultural Diversity. Why??? Well because it will help them grow globally to be able to bring those jobs back to Detroit to a workforce hungry (about 30% unemployment rate currently) for jobs and eager to do them right. And guess what, everybody wins. The leadership comes back to rest in the hands of General Motors which might still be headquartered in Detroit but will be leading globally. Its all about understanding cultural differences and having a product which people want to buy everywhere. I've wanted a great GM product for a long time. I still do. I hope it happens again.


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