Mary Barra, MBA '90, Chairman and CEO of General Motors, on Achieving Results with Integrity | Summary and Q&A

TL;DR

Mary Barra, CEO of General Motors, discusses the challenges and opportunities of leading a major auto company through the rapidly changing automotive industry.

Key Insights

• 😥 General Motors is focused on understanding customer needs and pain points to provide value and new experiences.
• 😫 The shift to a software-focused world requires a more dynamic and entrepreneurial mindset, and General Motors is investing in talent and shifting their skill set to adapt.
• 🚙 Autonomous cars have the potential to increase safety and convenience, but there will still be a long period of coexistence with human-driven vehicles.

Transcript

[MUSIC] It's an incredibly exciting time to have you here. There's so much going on in the auto industry. And before we delve into the trends within that, and potentially your personal career, and the leadership that you've shown, it'd be great to look at the space as a whole. And it seems at the moment there's a sort of existential threat where th... Read More

Questions & Answers

Q: How does General Motors navigate the decline in the desire to own cars and the rise of ride-sharing?

General Motors recognizes that customer preferences are changing, especially in dense urban environments. They are focusing on understanding customer needs and providing value through services like their alliance with Lyft and their own car-sharing program, Maven.

Q: How does General Motors manage the shift from a hardware-centric to a software-focused world?

General Motors has been investing in talent and shifting the skill set of their organization to include more software engineers. They also emphasize the importance of quicker iterations and decision-making in order to adapt to the faster pace of the software-focused world.

Q: What are the advantages and concerns of autonomous cars?

Barra believes that one of the most exciting aspects of autonomous cars is the potential for increased safety and a reduction in human error-related fatalities. However, she acknowledges that it will be a long transition period where autonomous and human-driven vehicles coexist, and there may be concerns about the limitations and potential imperfections of autonomous technology.

Q: What was the rationale behind General Motors' investment in Lyft?

General Motors believes that the future of autonomous driving will first happen in a shared environment, such as ride-sharing. Their investment in Lyft was driven by the belief that autonomous driving will provide safer and more convenient transportation options, and by aligning with companies like Lyft, they can develop and commercialize these technologies more effectively.

Summary

In this video, Mary Barra, the CEO of General Motors, discusses various topics related to the auto industry, leadership, and her personal career. She talks about the changing trends in the auto industry, the need for a customer-centric approach, the shift from hardware to software focus, the importance of being dynamic and entrepreneurial, the potential of autonomous driving, the alliance with Lyft, and the role of General Motors in the future. She also discusses the political environment, job creation, and diversity in the workplace. Mary Barra emphasizes the importance of being proactive in crisis situations, the value of collaborative leadership, and the excitement of being in the auto industry. She concludes by discussing the merging of cultures in the automotive and technology sectors and the need for both depth and breadth of skills in today's workforce.

Questions & Answers

Q: How does Mary Barra lead such a huge iconic company like General Motors in a context where the desire to own cars is declining?

Mary Barra explains that the company conducts research to understand consumer behavior and needs. They focus on understanding the pain points of customers in different urban environments and strive to provide value and new experiences. This drives their decision-making process when it comes to investing in different concepts, such as the alliance with Lyft, the acquisition of Cruise Automation, and the launch of their own car sharing program, Maven. The goal is to provide the most value for the customer as they move from point A to point B.

Q: How does General Motors adapt to the changing trends in the auto industry from a hardware-centric to a more software-focused world?

Mary Barra explains that General Motors has invested heavily in shifting the skill set of the organization. They have hired a significant number of software engineers and have mixed and remixed the workforce to adapt to the changing needs of the industry. The company recognizes that every vehicle they make now has tens of millions of lines of code, and they have embraced the challenge of developing software at both vehicle development cycle speed and agile software development cycle speed. They also acquired Cruise Automation to learn from their startup speed and infuse that thinking into the broader organization.

Q: What should people be excited about and concerned about in the transformation to autonomous cars?

Mary Barra highlights that one of the most exciting aspects of autonomous cars is the potential to significantly improve safety. According to statistics, 96% of all fatalities in the US are due to human error, and autonomous vehicles have the potential to greatly reduce these accidents. Additionally, autonomous cars can offer more convenience and provide users with additional time and experiences during their commute. However, there is a need for education and understanding during the transition period when autonomous vehicles will be interacting with vehicles driven by humans.

Q: What was the motivation behind General Motors' alliance with Lyft, and how do they see themselves in competition with Uber?

Mary Barra explains that General Motors believes autonomous driving for end consumers will first happen in a shared environment. They recognize that shared autonomous vehicles have better economics, as the costs can be spread across multiple users. The alliance with Lyft allows General Motors to understand and learn from the ride-sharing space while partnering with a company that has a deep understanding of customer behavior and preferences. Mary Barra does not directly address competition with Uber, but she emphasizes that General Motors is focused on providing the best value and experiences for the customer.

Q: What does General Motors look like in the next 10-20 years?

Mary Barra states that it is difficult to predict the future with certainty, but her goal as CEO is to ensure that General Motors leads the transformation in the auto industry. She believes that General Motors has the technical talent and the ability to focus on solving real issues for customers and making the world better from a customer, environmental, and congestion perspective. The company aims to improve the entire transportation space and contribute to the country and the world.

Q: How does General Motors balance the need for manufacturing jobs in the US with its manufacturing hubs around the world?

Mary Barra explains that General Motors has a philosophy of building where they sell, and in the US, 70% of the vehicles sold are built in the US. They have over 100,000 jobs in the US alone. However, she also emphasizes the importance of making manufacturing more competitive in the US by addressing issues such as a level playing field in global trade and working to improve job creation and job training. The foundation of all decisions, according to Mary Barra, should be good business and economic sense.

Q: How did Mary Barra handle the tweet from President Trump regarding General Motors sending Mexican-made Chevy Cruzes to the US?

Mary Barra explains that it was necessary to provide the facts and transparency in response to the tweet. While the vehicles were built in Mexico, the economics of building cars allowed General Motors to offer a vehicle that wouldn't have been possible if it was only built in the US. She emphasizes the importance of a level playing field and creating good business sense, and she believes that General Motors can contribute more jobs by selling more vehicles and making more vehicles in the US.

Q: How does Mary Barra handle the expectation that she should champion women in the workplace?

Mary Barra expresses her belief in being a champion for all people in the workplace and creating an environment where everyone's hearts and minds are engaged. She acknowledges the importance of being a role model for young women who aspire to pursue careers in STEM or other fields, and she takes pride in providing good middle-class or better jobs to her employees. Mary Barra also emphasizes the need for diversity in the workplace and the benefits that come from solving issues for women also benefiting other groups.

Q: What advice does Mary Barra have for individuals considering a long-term career at one company?

Mary Barra highlights the need to love your job and find fulfillment in your work. She believes that if you find yourself not enjoying the job or feeling unchallenged after six months to a year, it's time to make a change because life is too short. She encourages individuals to proactively advocate for themselves and communicate their interests and aspirations to their superiors. Mary Barra acknowledges that career paths may not always be straight, but being open to new opportunities and finding a position that aligns with your passion and values is crucial for long-term career satisfaction.

Q: How did Mary Barra handle the transition from peers to leading people who had previously been her peers?

Mary Barra explains that she had a strong relationship with her colleagues before becoming CEO, and they had worked together in the past. She has a collaborative leadership style and values diverse perspectives. This made the transition smoother, and she emphasizes the importance of open communication, constructive tension, and trust in leadership teams. Mary Barra believes in giving everyone a voice and making decisions based on collective input while maintaining the final accountability as the CEO.

Q: How did Mary Barra handle the faulty ignition switch crisis, and is there anything she would have done differently?

Mary Barra acknowledges that there were mistakes made over a long period of time leading to the ignition switch crisis. However, she emphasizes that the team within the company was the one that discovered the issue and took action by initiating a recall. She states that if they had known about it sooner, they could have made better decisions. Mary Barra highlights the principles of doing the right thing for the customer, being transparent, and making sure it never happens again, and explains the changes and improvements that were made to prevent such crises in the future.

Takeaways

Mary Barra discusses various aspects of the auto industry, leadership, and personal career. She emphasizes the importance of customer-centricity, understanding pain points, and providing value to customers. Mary Barra also highlights the need to adapt to the changing landscape of the industry, embrace software-focused approaches, and balance the need for depth and breadth of skills in the workforce. She encourages proactive leadership, being transparent and proactive in crisis situations, and fostering a collaborative and inclusive work environment. Mary Barra believes in the potential of autonomous driving to improve safety, convenience, and the overall transportation experience. She also addresses the importance of job creation, diversity, and being a role model in the workplace. Finally, Mary Barra reflects on her love for the auto industry, the excitement of building cars, and the transformation happening in Detroit.

Summary & Key Takeaways

• Barra emphasizes the need to understand customer preferences and pain points in order to provide the most value and new experiences for them.

• She highlights the importance of adapting to the shift from a hardware-centric to a software-focused world and the need for a more dynamic and entrepreneurial mindset.

• Barra talks about the importance of having a diverse and talented workforce that can adapt to the industry's changing demands.