I read with interest in a recent WSJ article the way in which Richard Waggoner, CEO of GM, had to change his nature to save his job--to become more conscious of the outside since "perceptions are reality". Also interesting was the way Ken Fisher, Board Member of GM and former CEO of Motorola handled the critical board meeting. I have "preached" in many of my classes the importance of preparation. What is it? It is being prepared for all possible contingencies or situations through forward thought and planning--especially in important meetings or events. If you confront a situation where there are multiple potential outcomes, think through each one and figure out how you should respond in advance. Too often, people go in with their "gut" and rely on "intuition" to make a snap decision. But your gut can be swayed by your heart/emotion and is usually one sided--i.e., does not consider all potential alternatives.

At a critical board meeting where the performance of Richard Waggoner was discussed openly by the Board, Fisher was able to control the meeting through his preparation. The Board was trying to decide whether to endorse Mr. Waggoner or not. This is a demonstration of how you get things done in a fast way with precision.

(Addressing the Board) the planned April 9 meeting put him in a precarious position, Waggoner said. He requested a strong and unified expression of support. Without it, he added, in a matter-of-fact tone, he couldn't continue as chief executive.

Mr. Wagoner then left the call. Mr. Fisher asked that directors issue a "reaffirmation" of their confidence in Mr. Wagoner and his turnaround strategy. It was clear the board wasn't eager to face the crisis of a suddenly vanished CEO without a clear successor lined up. "If not Wagoner, who?" asked one director.

Some said Mr. Wagoner was making progress on the strategy they all had approved. Director Armando Codina, according to a person familiar with the meeting, said that labor relations were a critical issue, and that Mr. Wagoner had unions' respect to work out a labor pact without a debilitating strike. Through a GM spokesman, Mr. Codina declined to comment.
Several directors voiced concerns about parts of Mr. Wagoner's strategy, such as his focus on large sport-utility vehicles. Mr. Wagoner had moved up the timetable to unveil a redesigned Tahoe, a big SUV, during the first quarter. Its sales popped at first, but the move also turned out to be just before a spike in fuel prices that hurt all car makers' SUV sales.
Avoiding a Vote

Some directors indicated they were uneasy going public with a show of support they might wish to withdraw in the future. But Mr. Fisher urged fellow directors to consider what was "in the best interest of GM right now." Then, avoiding a vote, he called for a consensus that the auto maker under Mr. Wagoner's leadership was moving in the right direction.
Mr. Fisher had come equipped with three possible wordings for such a statement, varying in the strength of their endorsement. Despite reservations by some, the directors finally agreed on a relatively strong statement from his list.




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