Tuesday, June 16, 2009

Lessons on Change from Chrysler Bankruptcy

As news emerges on what was going on internally at Chrysler right before bankruptcy, it gets me thinking od some true-isms of change :

1. Change is messy - Things never go as planned. Even when there is a plan for change. For some reason we all expect change to be linear: change a and turn into b. I have never seen a large scale change work that way. There is usually a big mess in between a and b. If that wasn't the case, we would have no customers!

2. Leaders often fold under the pressure - In Chrysler's case they seemed to be pressuring dealers to buy more inventory (even if they couldn't sell it) right up before bankruptcy. In other cases, they withhold the truth, bend the truth, put off hard choices. Not everyone can hold up the pressure of change.

3. Leaders often are peceived as liars - see trueism's 1 & 2. They lead into the perception (whether true of not) that leaders are not telling the truth. They may be telling the truth as best as they know it, however the "truth" and facts are often changing.

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