Nummi & Gm

NUMMI became a learning organization and therefore more competitive than the GM plant it replaced by having the willingness to experiment, trusting and encouraging feedback from its workers, implementing an integrated system in its work process, and installing leadership that showed the necessary commitment and patience.

First, NUMMI was not afraid to experiment. They were willing to work exclusively with previous GM workers from the Fremont plant, even though the plant was famous for being considered unmanageable. Also, they were not afraid to negotiate with the UAW by giving the union a strong job security clause and greater say in plant operations.

Second, NUMMI put complete trust in its workers by putting an emphasis in human development NOT technological development and implemented a team production assembly. They felt workers had the desire and motivation to do each job well and encouraged them to create ways of improving the products or processes. NUMMI's 'team assembly" was given autonomy to run its own line and rewarded each worker for improvement ideas.

Third, NUMMI implemented a complete integrated system in its work process that paid attention to detail. From the outset, it set up the plant properly, did not complicate the work force with brand new technology, selected suppliers, developed transportation systems to coordinate shipments, focused on effective quality controls from each division, and established credibility and trust with the UAW early in the process.

Fourth, NUMMI instilled proper leadership. They created a well designed product, Chevy Nova, to build (Leader as Designer). They figured out what was causing the old GM workers to fail, lack of trust from upper GM management, and instilled such trust which empowered the workers to change how they operated (Leader as Teacher). Finally, NUMMI's top management showed positive attitude and commitment by having deep interest in all the details and spending quality time on each plant visit (Leader as Steward).

NUMMI meets Senge's fundamental leadership challenges. It established its seven point operating philosophy and educated its workers through an extensive hiring and evaluation process (Building shared vision), encouraged each worker to think of ways of improving quality and rewarded workers for such improvements (Surfacing and