GM & Delphi to Lose 40k Brains

Buyouts may top 40,000 – 06/24/06 – The Detroit News Online

Wall Street will celebrate, but GM and Delphi are about to lose the experience and problem solving ability of 40,000 people. Well, wait a minute, was GM getting the most of out of those brains anyway? Or, had employeeschecked their brains at the door at management’s request? Hopefully, they can pick their brains up on their way to retirement or their next jobs.

It’s amazing to me that Toyota considers employees to be a great strength and something to develop, for the good of the company and the employee, while GM sees employees as a cost. How sad. What waste.

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Mark Graban's passion is creating a better, safer, more cost effective healthcare system for patients and better workplaces for all. Mark is a consultant, author, and speaker in the "Lean healthcare" methodology. He is author of the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, as well as The Executive Guide to Healthcare Kaizen. His most recent project is an eBook titled Practicing Lean that benefits the Louise H. Batz Patient Safety Foundation, where Mark is a board member. Mark is also the VP of Improvement & Innovation Services for the technology company KaiNexus.

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7 Comments on "GM & Delphi to Lose 40k Brains"

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  1. Jamie Flinchbaugh says:

    You make a very important point. Not all brains are equal, and sometimes its the combination of person and company that just needs a change. How many people that spent 20-30 years in the GM / Delphi system are still highly engaged change agents moving the company forward? Probably only a handful. Although the disengagement is a product of the company and environment, if you want to move forward, sometimes you have to make a break?

    Of course, these companies also just plain old have too many people. To survive, they need less. Demand is x and they have 1.4x people (or whatever the right ratio of waste is).

  2. Mark Graban says:

    True, GM has to get capacity down to sales (it’s easier than increasing sales, unfortunately). I guess my point is that it’s a shame that it got to this point and that others can make sure that their employees aren’t wasted resources. Had GM gotten better use out of people’s brains, they might not be in this mess today. But, instead, arrogant GM management (at all levels) had the answers and expected employees to “just do it” (no thinking!). The Frederick Taylor model is losing to the Toyota model.

  3. Jamie Flinchbaugh says:

    So here is the real question – forget GM and Delphi, what can we (collectively) do with 40,000 people who are well trained and fed up with the status quo?

    There is no question that many of these folks have both trained and learned skills, even if they aren’t helping their current employer. Wilber Ross wants to collect the pieces of the supply community and build a multi-billion dollar Tier 1. He might use some of them.

    So who wants to form a new company?

  4. Anonymous says:

    I’d take the subset with good skills but then would also want the sub-set of those who haven’t been “ruined” by the GM system. Look at what happened with NUMMI…. Toyota had to be pretty selective, but they found good employees who could proper in the TPS system. I would do like Southwest Airlines does (or did) and “hire for attitude”, assuming you train people on the rest.

  5. Anonymous says:

    The number is 35k according to today’s WSJ.

    “The buyouts pose a challenge because some plants may be left short-handed. GM said it will use temporary employees as necessary.”

    Great, do you want a car built by temporary workers?

  6. Anonymous says:

    Almost every car is built by some temporary workers, even at Toyota

  7. Anonymous says:

    But do you trust GM to have good standard work, standard processes, and training as compared to Toyota?

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