Question
Post Of the lessons identified in Chapter 5 on managing uncertainty, which one do you think would be the easiest of a company to adjust
Post
"Of the lessons identified in Chapter 5 on managing uncertainty, which one do you think would be the easiest of a company to adjust to and "fix" and which one would be the hardest? Why? Give examples to support both."
Mary Barra's handling of the General Motors (GM) ignition switch crisis can be evaluated based on the lessons for managing crisis uncertainty outlined in the provided text:
Lesson 1:Organization members must accept that crises can start quickly and unexpectedly.
GM's crisis was not entirely unexpected, as the faulty ignition switch issue had been known within the company since 2004. However, it escalated into a major crisis in 2014 due to the public's awareness of associated deaths.
Lesson 2:Organizations should refrain from responding to crises with routine solutions.
Mary Barra should have responded with routine solutions. She initiated a thorough investigation into the issue, recalled millions of vehicles, and took significant steps to address the crisis.
Lesson 3:Threat is perceptual.
Different perceptions of threat were likely present within GM's crisis. While the company understood the severity of the issue, the public and regulators may have yet to grasp the extent of the problem entirely.
Lesson 4:Crisis communicators must communicate early and often following a crisis, regardless of whether they have critical information about the crisis.
Barra's frequent communication was a key strength. She communicated early and often, even when all details were not known. This approach helped build transparency and trust.
Lesson 5:Organizations should not purposely heighten the ambiguity of a crisis to deceive or distract the public.
Some issues could have been more apparent during GM's crisis, particularly regarding the extent of the problem and why it took so long for a recall to be initiated. Barra's communication did not purposely heighten ambiguity but aimed to provide clarity.
Lesson 6:Be prepared to defend your interpretation of the evidence surrounding a crisis.
Barra consistently defended her interpretation of the evidence surrounding the crisis. She acknowledged GM's mistakes, accepted responsibility, and committed to addressing the issues.
Lesson 7:Good Intentions Before Crisis
Barra had the challenging task of addressing a crisis that had begun before her time as CEO. She intended to rectify the situation, learn from the mistakes, and prevent them from happening again.
Lesson 8: Responsibility Assignment
Barra didn't deflect responsibility. Instead, she accepted the responsibility for the crisis and worked on making necessary changes.
Lesson 9: Preparedness and Training
While the provided text doesn't explicitly mention simulations or training, Barra's establishment of the "Speak up for Safety" campaign and the changes she initiated within GM's culture indicate efforts towards preparedness.
Lesson 10:Challenging Business Conduct
The crisis challenged GM's previous practices and highlighted the need for a change in culture and approach to safety. Barra used the crisis as an opportunity for organizational learning and growth by introducing new safety initiatives and emphasizing continuous improvement.
Schmidt, A. (2020, July 12). How Mary Barra led GM through its 2014 recall scandal and changed the company's culture. Fox Business. https://www.foxbusiness.com/money/mary-barra-gm-2014-recall-scandal-winning-formula
Ulmer, Robert, R. et al. Effective Crisis Communication. Available from: VitalSource Bookshelf, (5th Edition). SAGE Publications, Inc. (US), 2022.
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