In 2010, Brooke Melton was driving her 2005 Chevrolet Cobalt when she suddenly lost control of the car on a rainy night. As she was driving, the car’s ignition switch unexpectedly shifted into the “off” position, cutting power to the engine, steering, and, crucially, the airbags. Her car slid into oncoming traffic, was hit by another vehicle, and, tragically, she died. She was 29 years old.
She was not the only one. For at least another 123 people died violently whilst driving their General Motor (GM) cars, caused by the same ignition switch defect that had occurred in Brooke’s Chevrolet. To make matters worse, GM had been aware of these defects (affecting the Chevrolet Cobalt and several other models of theirs) for over a decade, yet still they hadn’t issued a recall.
Four years on from Brooke’s fatal crash, and just before the ‘ignition switch crisis’ became public, thereby sparking a major public outcry and intense scrutiny from regulators, Mary Barra became the new CEO of General Motors. She quickly found herself at the epicentre of a well-publicised corporate scandal, not only facing a technical problem, but also a deep-rooted cultural issue which had allowed such a safety lapse to go unaddressed.
However, she resolved herself to embrace the challenge boldly, leading and managing the situation with transparency and decisive action. Her skilful handling of the crisis didn’t just save GM from a major scandal; it set the stage for a fundamental transformation of the company. By showing openness and clarity, accountability, and a commitment to change, Barra managed to guide GM through one of its’ toughest chapters, making it a more resilient and trusted brand in the process.
So what were Barra’s decisive actions? How did she stop the ship from sinking? Well firstly, she prioritised transparency and accountability by issuing a public apology to the families affected, acknowledging the gravity of the crisis, and ordering an internal investigation to understand how the defect had been allowed to persist for so long.
She then oversaw a massive recall of over 30 million vehicles worldwide, costing the company billions of dollars. Barra emphasised that safety would take priority over cost, instructing GM’s teams to move swiftly and thoroughly to replace faulty parts.
Next, she aimed her focus on transforming GM’s corporate culture. There was a long-standing “silo” ethos at GM, where departments didn’t effectively communicate with one another, and problems were passed on rather than being resolved. She worked hard to implement a new culture emphasising safety, accountability, and open communication, by introducing a company-wide initiative called “Speak Up With Safety”, which encouraged employees to report safety concerns without fear of reprisal. And to underline this cultural shift, Barra dismissed fifteen senior employees who were found to have contributed to the safety lapses, demonstrating that the business would hold individuals to account.
This was followed by refocusing on safety and quality, through establishing a team solely dedicated to ensuring safety and quality were deemed the highest of priorities throughout every stage of product development. She also altered GM’s decision-making structure so that safety and quality reports would reach CEO level faster, and thus ensuring issues wouldn’t be buried within the organisation.
And finally, Barra faced regulatory and legal consequences head on, cooperating fully with U.S government investigations, testifying before Congress multiple times, and providing extensive documentation about GM’s response to the crisis. Consequently, GM paid $900 million in settlement costs to the Department of Justice for resolving the criminal investigation into the handling of the defect, and so acknowledging its’ responsibility.
In summary, Mary Barra’s response to the ‘ignition switch crisis’ is widely regarded as a case study in crisis management. By electing for transparency, and taking swift and decisive action, she rebuilt public trust in General Motors, and reshaped the company’s internal culture.
But what about those who aren’t the CEO of a global car manufacturer? Well, for anyone who leads for long enough (whether that’s a multi-national corporation or an amateur sports team), challenges will inevitably come along at some point. Leading a team – any team – through tough times calls for resilience, support, and crystal-clear communication.
Therefore, to help you navigate through future choppy waters, take a look at these ten leadership and management techniques to give you the best chance of sailing the ship into calmer seas:-
1 Embrace Transparency
- Share the reality: Be honest about the challenges. People appreciate knowing the truth, even when it’s tough.
- Explain the “why”: Articulate the rationale behind the decisions and challenges. Letting your team know the context can foster a sense of shared responsibility and reduce fear of the unknown.
“Transparency breeds legitimacy.”
JOhn c. Maxwell
2 Prioritise Support
- Listen actively: Give your team members the time and space to express their concerns, frustrations, or ideas. By acknowledging their feelings, it shows that you care about their wellbeing.
- Offer resources and support: If possible, connect them with resources that can help, whether it’s professional development, counselling, or additional guidance.
“Helping others is the way we help others.”
oprah winfrey
3 Focus On What You Can Control
- Set short-term goals: During uncertain times, long-term planning can be difficult. Break goals into small, achievable steps to maintain momentum.
- Celebrate small wins: Acknowledging and rewarding minor victories can really boost morale, and reminds the team that progress is still being made.
“We can’t direct the wind, but we can adjust the sails.”
Thomas s. Monson
4 Make Decisive Yet Compassionate Decisions
- Analyse with data and intuition: Use data to inform decisions, but remain aware of the human impact. Balancing rational decision-making with compassion helps maintain trust.
- Involve the team whenever possible: Ask for input, especially when tough choices affect the whole team. This can lead to innovative solutions and a greater sense of ownership.
“Compassion is the basis of morality.”
Arthur Schopenhauer
5 Role Model Resilience
- Stay grounded: Your attitude sets the tone for the team, especially important during difficult times. Show optimism and resilience while acknowledging the reality of the challenge. When the team see that you’re steady and grounded, it can reduce their anxiety.
- Adapt quickly: Demonstrate flexibility by adapting to new challenges as they arise, and encourage your team to do the same. Being able to pivot and find alternative solutions shows that you can handle setbacks constructively.
- Share personal challenges and strategies: Reveal some of the ways in which you’re managing your own stress, and how you are staying resilient. This can make you relatable, and your strategies might help others cope as well.
- Reinforce positivity with a ‘can-do’ attitude: Encourage a focus on solutions rather than dwelling on obstacles. Highlight how the team can collectively navigate through tough times by staying proactive and constructive.
“What lies behind us, and what lies before us, are tiny matters compared to what lies within us.”
Ralph Waldo Emerson
6 Maintain Open & Ongoing Communication
- Regular check-ins: Schedule frequent team meetings to keep everyone updated on developments and progress. Consistent communication reduces anxiety and builds trust.
- Encourage two-way feedback: Cultivate an environment where team members feel safe to voice concerns, ask questions, and give feedback. When people know their voices matter, they are more likely to stay engaged.
“The art of communication is the language of leadership.”
James c. Humes
7 Empower Your Team To Problem Solve
- Delegate meaningfully: Give team members responsibility over specific challenges and encourage collaborative problem-solving. It shows trust and gives them a stake in overcoming difficulties.
- Encourage innovation: Provide your team room to experiment with new ideas and strategies. Tough times can lead to innovative solutions that may not otherwise have emerged.
“Empowerment is realising your own strength, and helping others realise theirs.”
Unknown
8 Prioritise Wellbeing
- Recognise burnout signs: Be vigilant for signs of stress and burnout within your team. Offer flexibility where possible, such as adjusted hours or mental health resources.
- Foster a supportive culture: Remind the team to take breaks and practice self-care, and then demonstrate this by taking care of yourself. Creating a culture of wellbeing can improve resilience.
“Take care of your body, it’s the only place you have to live.”
Jim rohn
9 Align With The Purpose
- Revisit the team’s mission: Help your team reconnect with the core purpose of their work, which will reinforce a sense of meaning and motivation.
- Lead with integrity: Ensure that all your actions and decisions are consistent with the team’s mission and objectives. Leading by example builds credibility, especially when stakes are high.
“A man without purpose is like a ship without a rudder.”
Thomas carlyle
10 Stay Focused On The Long-Term Vision
- Provide hope and direction: Even in difficult times, keep your team oriented towards future goals. It’s crucial to inspire a sense of hope and purpose that will get them through challenging periods.
- Plan for recovery: And once immediate challenges are managed, help the team prepare for a recovery phase. Discuss lessons learned, opportunities for growth, and potential improvements for the future.
“Vision is the art of seeing what is invisible to others.”
Jonathan swift
I once heard a leader say that, “anyone could do my job most of the time, but most people couldn’t do it when there’s a crisis.” Leading through tough times is the ultimate test of your skills and of the team, but it’s also an opportunity to strengthen your collective resilience, and a chance to deepen their trust in you as a leader.
So take a big breath and go for it………..you’ve got this!
Please do get in touch if you have any comments or questions on this article, or if you’d like to suggest a topic for another pice.
Nathan Wood Consulting 