
I read with passing interest a recent article in the Wall Street Journal regarding the Chrysler Group LLC preparing for bad news about its September sales (Chrysler Faces Chilly Autumn, September 15th).
I didn't think much about the article at first, truthfully. Yes, Chrysler is in extremis and needed US government help to navigate through a bankruptcy that was filed on April 30, 2009. Yes, America's number three car-maker has been struggling for some time and it's leaders are now fighting for the company's survival.
I re-read the article and it dawned on me an additional daunting leadership challenge Chrysler faces - one related to organizational culture. Chrysler was recently purchased by Fiat of Italy
and is now led by Italian CEO Sergio Marchionne. It struck me how dramatic the changes have been at Chrysler over the past several decades - changes that undoubtedly have had major impacts on the culture of the company.

Chrysler has a long history going back to its founding in 1925. Everyone knows of the turnaround Chrysler made under Lee Iacocca in the 1980's.

From 1998 to 2007, the company was part of the German firm DaimlerChrysler AG. And now in 2009, it is part of an Italian ownership team. When you think about it, these dramatic changes almost certainly have to generate significant changes in the organizational culture of Chrysler. Beyond the typical cultural changes inherent in a changing of CEO's, the added dynamic of differing country cultures is at play. This company, in crisis, has gone from the leadership of an American icon, to leadership from a German company to now an Italian company. These changes couldn't have come easily.
Senior leaders must be skilled at change management and establishing a vision for the new company, absolutely. I would submit that senior leaders must exhibit cultural intelligence to understand the differences between the American and Italian cultures. Perhaps Chrysler workforce has become used to such changes and is very adaptable. From another article in the WSJ, it appears that the new CEO is finding out that his engineering and management talent has been thinned out due to attrition over the past several years. Instead, perhaps, many of Chrysler's employees have decided to get off the merry-go-round.
Chrysler's web site does speak to the existence of a "Global Diversity Council" comprised of senior leaders, so the company may in fact be actively working the cultural challenges.
As the world becomes a smaller place and companies become increasingly global - in reach and in leadership composition - cultural intelligence and a
keen understanding of diversity are critical skills that senior leaders of the future must possess. Without the proper leadership and insight, country cultures and ways of doing business will clash. Good leaders recognize these challenges, build upon the strengths and differences of country cultures. With their hands on the steering wheel, they can navigate their companies through the obstacle course that cultural diversity can sometimes seemingly present.

Chrysler LLC:
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