Avoid Costly Mistakes: Make Decisions That Drive Success

In this episode of How Leaders Lead, David Novak interviews Mary Barra, CEO of General Motors, who shares insights on leadership, innovation, and transformation in the automotive industry. Barra emphasizes the importance of seeking truth and making decisions based on data rather than assumptions. She discusses GM's transition to electric vehicles and the integration of software and autonomy into their products. Barra also highlights the significance of fostering a collaborative culture that values both legacy expertise and new technological skills. Her leadership style is characterized by transparency, accountability, and a commitment to safety and customer satisfaction.

• Mary Barra emphasizes the importance of seeking the truth in decision-making processes at General Motors (GM).
• Decisions should be based on accurate information and data, not personal biases or convenience.
• A holistic, enterprise-wide perspective is crucial for effective decision-making.

"Seek truth was really our message to the entire company. Don't just give us something that optimizes your area. But it was that frustration of decisions coming to us that weren't the whole truth because they didn't look at it from an enterprise perspective."

• This quote reflects the importance of looking at the bigger picture and making decisions that benefit the entire organization rather than individual departments.

• Mary Barra's journey at GM began at age 18, showcasing her long-standing commitment to the company.
• Her career path included diverse roles, from inspecting car parts to leading the company as CEO.
• Her personal experiences and upbringing influenced her work ethic and leadership style.

"I read that you drove a Chevrolet Chevet in college. Now, what did that say about who you were at that time and stage of your life?"

• This anecdote highlights Barra's humble beginnings and connection to the automotive industry, which shaped her career and leadership approach.

• The automotive industry is undergoing significant changes, particularly in propulsion systems and vehicle technology.
• Electric vehicles (EVs) and software integration are key trends shaping the future of automobiles.
• Autonomy and driver assistance technologies are areas of focus for GM.

"I think there's two things. Everybody's talking about the change in propulsion, going from internal combustion engine to EVs... But there's two trends I think that are even more significant."

• This quote underscores the transformative trends in the automotive industry and GM's strategic focus on these innovations.

• GM is bringing in external experts to enhance its capabilities in battery technology and software development.
• The integration of new talent with existing teams is crucial for innovation and success.
• Building mutual respect and collaboration between legacy employees and new hires is a priority.

"It's bringing in people outside the company who are experts who really bring that expertise... marrying that knowledge and that expertise from the outside in with the people who know how to do great vehicles really well."

• This quote illustrates GM's strategy of combining new skills with traditional automotive expertise to drive innovation.

• Mary Barra attributes her leadership style to her upbringing and the values instilled by her parents.
• Hard work, dedication, and the belief in the American dream are central to her personal and professional philosophy.
• Continuity and growth within GM have been driven by opportunities and a strong company culture.

"Well, I think early in my career, I just had so many opportunities. I mean, General Motors sent me to Stanford to get my MBA. I worked in an assembly plant."

• This quote highlights the diverse opportunities at GM that contributed to Barra's development and success as a leader.

• Focus on excelling in your current role rather than constantly seeking the next opportunity.
• Owning your job and making meaningful contributions can lead to recognition and advancement.
• Passion for the industry and the product is essential for sustained success and motivation.

"So often I see people who are very talented and very smart, but are more focused on their next job than they are on the one they're in."

• This advice emphasizes the importance of dedication and excellence in one's current role as a pathway to career advancement.

• Mary Barra initially struggled with shyness and hesitancy to speak up in meetings.
• She received advice from a mentor at GM to express her thoughts, even if they might be wrong.
• This advice helped her gain confidence and distinguish herself by understanding the broader business context beyond her immediate responsibilities.

"One of the things I learned and I got great advice from a person. I had many mentors at GM, but one of the mentors said, you know, Mary, no one knows what you're thinking if you don't speak up. So don't be afraid to speak even if you're wrong."

• The quote highlights the importance of voicing one's thoughts and ideas to be recognized and to contribute effectively to the organization.

• Barra was considered for the CEO position unexpectedly due to her predecessor's personal circumstances.
• She experienced a mix of surprise and excitement upon learning about her selection.
• Barra celebrated her achievement privately with her husband, emphasizing the personal significance of the moment.

"I was going to be CEO and I'm like, you know, oh my gosh. And but then I had to go right into the right into the boardroom and I didn't get a chance to tell my husband."

• The quote illustrates the unexpected nature of her promotion and the immediate responsibilities that followed.

• Barra did not initially plan to become CEO but was motivated to grow and lead within the company.
• She enjoyed leading people and understanding how to motivate them to perform at their best.
• Once aware of her candidacy for CEO, she worked hard to distinguish herself and aspired to achieve the role.

"I like leading people. I like to understand what makes people tick and how do you motivate them to do and be their very best?"

• The quote underscores Barra's passion for leadership and her focus on creating an environment where people can excel.

• Barra faced additional pressure as the first female CEO of a major global automaker.
• She recognized her role as a model for young women and girls, particularly in STEM fields.
• Barra emphasized the importance of visibility for women in leadership roles to inspire future generations.

"I realized I had a really important role to help make sure women understood yes you can achieve these kinds of jobs."

• The quote reflects Barra's awareness of her position as a trailblazer and her commitment to inspiring and supporting women in the industry.

• Barra's leadership was tested by a major product recall due to a faulty ignition switch.
• The crisis required daily meetings, transparency, and a focus on customer protection.
• GM conducted an internal investigation and self-reported the issue, demonstrating accountability.

"We were the ones who actually figured it out and self-reported that we knew what the problem was."

• The quote highlights GM's proactive approach in addressing the crisis and Barra's commitment to transparency and accountability.

• Barra took responsibility for issues that occurred before her tenure, emphasizing the importance of leadership accountability.
• She focused on culture change and demonstrated commitment to company values during the crisis.
• Barra's approach reinforced the importance of doing the right thing, even when faced with challenges.

"If you're in the chair, you own them. You've got to fix them. We can't make excuses."

• The quote emphasizes Barra's belief in leadership accountability and the necessity of addressing issues head-on.

• Safety became a foundational aspect of GM's culture under Barra's leadership.
• GM implemented regular safety protocols and dedicated a week to safety awareness annually.
• Barra also emphasized the importance of speed in innovation and maintaining a competitive edge.

"We start every meeting with a safety uh safety protocols and a safety message, but once a year we dedicate a whole week."

• The quote illustrates GM's commitment to safety and the integration of safety practices into the company's culture.

• Barra promotes a culture of truth-telling and seeks enterprise-wide solutions rather than siloed approaches.
• She encourages employees to present comprehensive solutions that benefit the entire organization.
• This approach aims to foster collaboration and innovation across different departments.

"Seek truth was really our message to the entire company from our individual contributors all the way to our vice presidents."

• The quote highlights the importance of transparency and comprehensive problem-solving in fostering a collaborative and innovative organizational culture.

• Emphasizing the importance of truth and data in decision-making processes within a large organization.
• Importance of demonstrating facts with data to make informed decisions quickly.

"What's let's get to the truth, not what someone wants it to be. How can you demonstrate it with information, data, and information so we can make the very best decision quickly?"

• The quote highlights the commitment to basing decisions on factual data rather than subjective desires, ensuring swift and informed decision-making.

• Regular engagement and benchmarking across industries to ensure employees feel valued.
• Enhanced communication strategies, including global town halls and leadership accountability, to address employee concerns and align the organization.

"We do regular engagement. We benchmark our information across other industries and other companies and then we hold our leadership and managers accountable."

• Emphasizes the proactive measures taken to ensure employee engagement and the importance of leadership accountability in addressing employee feedback.

• Teamwork as a critical factor in overcoming challenges such as COVID-19 shutdowns and semiconductor shortages.
• The role of cross-functional teams in removing roadblocks and making priority decisions.

"It was a cross-functional team that started meeting on a daily basis leadership met on a daily basis to help remove roadblocks to help make priority decisions."

• Highlights the reliance on teamwork and collaboration across functions to tackle complex organizational challenges effectively.

• The strategic decision to transition to all-electric vehicles by 2035 to eliminate internal debates and focus on action.
• Importance of aligning company strategy with customer guidance and industry trends.

"When we put the proclamation that we plan to be all-electric by 2035 for our light-duty vehicles, it stopped the internal debate of if we should and people got working on what it would take."

• Illustrates the decisive action taken to focus the organization on achieving a significant strategic goal, moving from debate to execution.

• Addressing setbacks in EV production due to automation challenges and the importance of honest communication.
• The belief that transparency and truthfulness build credibility and trust.

"We literally are having automation challenges with building modules for battery packs. So we were honest. It cost us it hurt for almost a year but we then had a year of execution."

• Demonstrates the commitment to transparency in addressing challenges and the long-term benefits of maintaining credibility through honesty.

• Observations from Tesla's advancements in range and charging infrastructure as a benchmark for innovation.
• Collaboration with Tesla to enhance charging network access for GM vehicles.

"Early on when they came out with a vehicle that had over 300 miles of range that was huge because others who had EVs out there 300 miles became consumer confidence."

• Reflects the importance of learning from industry leaders to drive innovation and improve competitive positioning.

• Addressing skepticism about the future of US automakers by showcasing award-winning products and market share growth.
• Emphasizing the need to change perceptions and demonstrate leadership through product excellence.

"One of the sell-side analysts said we're the best house in a bad neighborhood. I said okay we got to move neighborhoods because we got a good house."

• Highlights the strategy to overcome negative industry perceptions by focusing on product quality and market differentiation.

• The evolution of customer-centricity from manufacturing quality to product development and marketing.
• Continuous learning and reliance on a strong marketing team to enhance customer focus.

"In product development now we have all the chief engineers who are deciding what is this product going to be. We start with a blank piece of paper and have to make all the decisions."

• Illustrates the importance of understanding customer needs in product development and the ongoing learning process in marketing.

• Bringing in talent from outside the industry and monitoring competitors to remain externally focused.
• Recognizing the risks of insularity and the need to stay informed about global trends and technological advancements.

"Being insular was one of the things that hurt General Motors. They went from the success of the 50s and 60s and I think they stopped looking outside."

• Emphasizes the necessity of maintaining an outward-looking perspective to avoid the pitfalls of insularity and drive continuous improvement.

• Emphasizes the importance of preparation in any professional endeavor, likening it to preparing for a major event in sports.
• Preparation involves practicing and gearing oneself for specific challenges and environments to ensure readiness and optimal performance.

"You can't walk into a business meeting, you can't walk into anything or a sales, anything if you're not prepared."

• Highlights the necessity of preparation for success in various professional settings.

"I prided myself on being prepared to play when I was ready to play, wanted to play."

• Stresses personal commitment to being prepared as a key factor in achieving desired outcomes.

• Ambidextrous leadership involves managing current tasks while also planning strategically for the future.
• Requires a balance between addressing today's issues and setting strategies for tomorrow to ensure relevance and progress.

"Ambidextrous leadership is how do I manage for today and manage and look over the horizon for tomorrow."

• Describes the dual focus of managing present operations while planning for future developments.

"You might perfect today, but it's irrelevant for where the industry and the world is going."

• Warns against focusing solely on current perfection at the expense of future relevance.

• Prioritizes spending more time on strategic planning over day-to-day management.
• Involves periodically reviewing time allocation to ensure focus on future goals.

"I try to spend more of my time on strategy. Although if we're having issues, I'll dig deep."

• Indicates a preference for strategic involvement while remaining responsive to immediate problems.

"I do go back every now and then and look at how much time have I spent on what's for the future of the company versus the problems of today."

• Emphasizes the importance of reviewing time spent on future planning versus current issues.

• Continuous learning and staying informed about technological advancements and global trends is crucial.
• Engaging with team members and participating in learning sessions aids in understanding and applying new tools.

"I'm working on making sure I understand AI and just using the tools in my daily life."

• Highlights the importance of understanding and integrating new technologies in daily operations.

"Reading of everything that's happening around the world is so important to stay up on trends on business around the globe."

• Stresses the necessity of staying informed on global business trends for effective leadership.

• Encourages every individual in an organization to contribute to innovation, focusing on customer needs.
• Historical examples of innovation at General Motors demonstrate the company's commitment to solving customer challenges.

"One of the innovations with Cadillac way way back when is they invented the electric starter."

• Illustrates GM's history of innovation driven by customer needs.

"Every engineer, every single person in the company can be thinking along those lines."

• Encourages a culture of innovation where every employee is motivated to contribute.

• Balancing professional responsibilities with family life involves creative scheduling and prioritizing important family moments.
• Emphasizes the importance of being present for family events while maintaining professional commitments.

"There were times where when the kids were little, I'd take the break so we could have family dinner together."

• Describes the effort to balance work and family by prioritizing family time.

"What I encourage people to do is that period of time, you think it's going to go on forever, but it doesn't."

• Advises others to cherish and prioritize family time, recognizing its fleeting nature.

• Successful long-term partnerships are based on friendship, mutual support, and honest communication.
• Partners should enjoy spending time together and support each other through various challenges.

"We're best friends. I mean, I want to be around my husband and I think he wants to be around me."

• Emphasizes the importance of friendship and mutual enjoyment in enduring relationships.

"He's also the person every now and then holds up the mirror to me and says, 'Mary, come on.'"

• Highlights the role of honest feedback and support in a successful partnership.

• Effective leadership involves knowing and caring about team members and providing constructive feedback.
• Feedback is essential for personal and professional growth, enabling individuals to perform at their best.

"Get to know your people, care about them, and give them feedback. Feedback is a gift."

• Stresses the value of feedback as a tool for improvement and growth.

"If you don't give someone feedback, how do they know what you think they're missing?"

• Highlights the necessity of feedback for individuals to understand and improve their performance.