CEO Revamps General Motors

When former General Motors (GM) Chair Jack Smith stepped down in May 2003, G. Richard Wagoner Jr. smoothly stepped up to assume control as GM’s youngest chair and CEO in company history.

Wagoner had already been the president and CEO of GM since 1998, so the step did not come as a shock.

“To be honest, I wasn’t surprised. It was a pretty logical progression,” Wagoner says.

Nevertheless, Wagoner faced a formidable challenge—steering GM through a weak economy and jittery investment period.

One year later, as Wagoner comes to Harvard Business School (HBS) as its Class Day speaker, he brings with him a string of accomplishments: earnings are increasing steadily, worldwide expansion progresses and a host of new products are flowing through the markets.

Although So-Young Kang, chair of the four-person HBS Class Day committee, says the actual selection process for selecting the speaker is confidential, she says Wagoner was chosen based on his significant contributions to the corporate world.

“There is a screening process where we gather information from students,” she says. “We take into consideration indirect faculty influence, student interest and their leadership ability—which is ultimately what HBS stands for.”

Kang says Wagoner is a very active alum and was the top choice for Class Day speaker.

“We’re absolutely ecstatic he will come here tomorrow,” she says. “We’re so excited that he’s able to come.”

BUSINESS LEADER

Wagoner, who received an economics degree from Duke University in 1975 and an MBA from the Business School in 1977, says he had always been interested in business management. And that, combined with an interest in the automobile industry, led him to where he is today.

“I always enjoyed being involved with groups of people, even in junior high school,” he says. “I enjoy a profession that’s based on meritocracy, and I’ve been particularly interested in the auto industry: it contains a broad range of constituents—government, worker unions...and involvement in every aspect of economic policy.”

Wagoner recalls his time at Harvard as a “wonderful experience.”

“I was quite young when I went to HBS,” Wagoner says. “I think they have terrific professors...they encouraged students to think about problems, and that’s something that’s really stayed with me.”

Since Wagoner took the wheel at GM, he has instituted a fresh set of policies.

“We’re focusing on staying aggressive in the market-place in every market in the world—and it’s worked pretty well thus far,” he says.

“I think it certainly appears from the outside, and also in conversations with insiders that Rick Wagoner is already making a major difference in the company,” says H. Kent Bowen, Rauner professor of business administration at HBS. “First of all, he’s very smart. Secondly, he’s become CEO at a relatively young age, so in addition to focusing on changes in the near term, he has clearly a long-term view for the company.”

COMMUNITY LEADER

Not only is Wagoner a leading influence in business, but he also actively participates in the Detroit community.

Last year, Wagoner led a committee which convinced the National Collegiate Athletic Association (NCAA) to hold its Division I men’s basketball Final Four tournament in Detroit in 2009.

According to The Detroit News, the endeavor will helps draw more than 75,000 fans and secure more than $75 million for the Detroit economy.

Bradford Kinsman, athletic director of the University of Detroit Mercy and another member of the committee that pushed for the NCAA tournament, says Wagoner displays unwavering dedication to the community.

“He’s extremely passionate about college basketball,” Kinsman says as he describes Wagoner’s decision to send a representative to Albuquerque, N.M., to try to sway the NCAA. “He served as executive chairman and literally led the corporate initiative. I think the NCAA was extremely impressed by his manner and presentation. He just does a fabulous job.”

Susan Sherer, who also sat on Detroit’s NCAA committee, says Wagoner’s leadership was paramount to securing the Final Four.

“There is no doubt in my mind that his commitment is what made it happen,” she says. “He has a great love for athletics—he was a college basketball player for Duke University—so he understands what athletics brings to the community.”

Wagoner also lists education as one of his top priorities. He serves on the board of trustees at Duke University and spearheads a national program called a World in Motion, which encourages students to pursue careers in science and mathematics.

“It’s a program where engineers who work for a variety of companies work with teachers in teaching students how math and science is used in real world,” he says.

A DAY IN THE LIFE OF A CEO

Wagoner says there’s no such thing as an “average day” in his schedule.

For instance, yesterday, he inspected new products, met with union leaders, watched a high school basketball game and attended a middle school graduation.

And then he went over the speech he is delivering today.

“To do this job, you gotta have energy, enjoy a lot of different things and don’t mind a full schedule,” Wagoner says.

When asked what qualities he believes make for a successful business person, Wagoner says one should have “an enthusiastic attitude” and attempt “to learn every day, no matter what you’re doing—outside the company...or with people on the factory floor.”

“Focus on doing your job well, and don’t worry about somebody else’s job,” he says.

—Staff writer Risheng Xu can be reached at xu4@fas.harvard.edu.