From Bankrupt to Profitable: Chrysler’s Culture Change

chryslerThe Guardian has an excellent profile of how Chrysler has turned around its culture, shifting from a bureaucratic, innovation-killing culture to a flatter, faster and more purposeful one:

Incoming CEO Sergio Marchionne was determined to revitalize the business. He understood this could only be accomplished by changing Chrysler’s innovation-stifling culture. [Chairman] Kidder put his faith in Marchionne, assembling a board of directors who would stand behind the new CEO’s efforts to perform radical surgery.

“Sergio crashed through the old culture,” Kidder recalls. On his very first day at Chrysler, Marchionne moved the CEO’s office from the penthouse to the middle of the engineering department. He then streamlined senior leadership and asked most of his remaining 15 direct reports to lead more than one function, knowing that the increased work load would yield faster decision making. Marchionne also gave his team full authority to take risks without bureaucratic barriers. People were trusted to make smart decisions and be accountable. Kidder says: “Suddenly, we had this very flat organization, and guess what? The speed picked up immensely.”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Enter your email address to follow this blog and receive notifications of new posts by email.

Join 9,368 other followers

%d bloggers like this: