Diamond Model of Leadership and GM Case Study

The Diamond Model of Leadership

• The Diamond Model of Leadership illustrates a framework for understanding effective leadership.
• The model posits a leader's influence on others and an organization.
• Key factors include developing influence, commitment to strategy, strategic thinking, designing tasks, managing change, organizational commitment, and results like profits, customer satisfaction, market share, efficiency, learning, productivity, and employee energy.
• Environmental effects are also a factor in the leader's context.

GM Leadership Problems

• A cartoon portrays a leadership problem, highlighting a perceived disconnect between desired innovation and actual results.
• The cartoon suggests a lack of clear understanding or implementation of a specific concept.

Short Background on General Motors

• In the 1950s, General Motors implemented a strategy of establishing plants in the southern and western USA, which were non-unionized ("right-to-work states").
• This strategy was seen by unions as an attempt to move away from union-controlled states.
• These new plants, as per the background information provided, became some of the most conflicted and problem-ridden within GM's system.

1982 GM Fremont Plant

• Statistics from the 1982 GM Fremont plant include 5000 employees, 20% absenteeism, 2000 unresolved grievances, 5000 total annual grievances.
• Reported issues include 3-4 wildcat strikes, unfavorable product performance (Chevrolet Nova assembly costs 30% over its Japanese counterpart), low productivity, and poor quality.

1986 GM NUMMI Plant

• The 1986 GM NUMMI plant showed significant improvement.
• The statistic-based comparison mentions 2000 employees, 2% absenteeism, 0 unresolved grievances, 2 total annual grievances, 0 wildcat strikes.
• The plant produced a Chevrolet Nova+Geo Prism, the product's assembly costs were comparable to Japanese counterparts, and the plant's productivity and quality surpassed the GM average and were amongst the best in GM.

How Culture Changes

• Lessons from NUMMI's transformation are consistent with Edgar Schein's model of organizational culture.
• This model suggests that changing artifacts—observables such as actions and behaviors—can reshape a company's culture.
• The model also stresses the need to define desired behaviors and craft processes reinforcing them.

Levels of Leadership

• Effective leaders influence human behavior at three levels;
• Visible behavior,
• Conscious thought, and
• Values, assumptions, beliefs, and expectations (semi-conscious).

Knowing the Heart Means Understanding Needs

• The importance of understanding employees' needs, particularly in the context of the NUMMI plant, is highlighted.
• The need for leaders to motivate and understand employees' expectations and goals.
• The importance of considering difficult employees and how leaders can still successfully engage with them.