Bob Lutz speaking in Detroit (Photo credit: Wikipedia)
Usually if the title of a business book contains the word “idiot” in the title I assume the book is a screed on the perils of working for bosses who are not as smart as the author and therefore deserve belittlement. Such books I avoid like the plague because like subjects of these fevered rants, the authors – often disgruntled employees or self-important consultants – offer little of merit other than an ability to rail against the system.
But should the title also contain “icon” and is authored by one Robert Lutz who could veritably be called that himself, it is worth a read. Lutz's newest book, Icons and Idiots: Straight Talk on Leadership is not only entertaining, if you like larger than life stories about auto magnates, it is also illuminating.
Lutz knows of what he speaks. Now in his late seventies, Lutz was unusual player in the auto business. He is one of a handful of auto executive to have worked as a senior leader for all of Detroit Three (plus BMW) and did it in an era when executives, particularly in the auto business stayed with one company for their entire careers. [Lee Iacocca for whom Lutz worked is an exception.]
Lutz during his years in Detroit, as No. 2 at Chrysler to Iacocca and later Bob
Yes he was colorful, but he was savvy executive. While he never served in the CEO slot, he contributed plenty in his years as an auto executive, and including in his final stint as vice-chairman of General Motors. Then GM CEO Rick Snyder brought in Lutz who had retired from Chrysler to shake up the product development and shake he did. Under Lutz, product development became smarter, leaner, and more focused. Part of GM’s renaissance – aside from bankruptcy and federal bailouts – can be attributed to Lutz’s magic.
Icons and Idiots is a romp through his career with a discerning look at the executives (all men in Lutz’s day) who left their mark, sometimes not always for the better. For example:
Eberhard von Keuhnheim was CEO of BMW when Lutz was recruited away from Ford to work for the Germany automaker. Lutz descripted von Keuhnheim as a Prussian aristocrat turned street fighter. While he was not particularly liked, perhaps because he didn’t like many people himself, von Keunheim was autocratic but nonetheless successful. During his 23-year tenure as CEO the company grew in size as well as stature, and “successfully resuscitated the iconic Mini brand… [as well as] Rolls Royce.”
Harold “Red” Poling was Ford CEO and a bean counter to his core. While engineers didn’t like Poling’s obsession with containing cost versus improving performance, Lutz argues that Poling taught him that “tough, uncompromising, unfeeling and almost nasty approach to initial cost and investments could produce meaningful savings.” This is something Lutz took with him to Chrysler.
Rick Wagoner was GM’s last independent CEO. Much liked throughout the company for his demeanor and his willingness to bring in outsiders (like Lutz) were good for the company. But Lutz labels him a good “’peacetime’ CEO” who was done in by his unwillingness to disrupt the culture and cut costs more sharply.
Lutz keen insights in management and leadership are leavened with good stories. And it is the storytelling the Lutz truly makes his characters come to life. Rather than dry statistics about declining market share or analyses of ill-conceived vehicles, Lutz shows us what it takes to lead in a larger than life industry when too often the characters in charge were not suited for such leadership. Too many were focused on their own reputations rather than corporate viability and as a result the companies they led (too often downward) suffered.
Lutz was there with a front row seat, and auto historians – as well as anyone with an interest in business -- are fortunate that he was.
