Autos: Managing to Succeed

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No organization is sounder than the men who run it and delegate others to run it.

—Alfred P. Sloan

Though good management is the concern of every business, giant General Motors has raised it almost to the status of a religion. Under the system developed by Sloan when he was G M's president, each of the corporation's 661,000 employees is carefully screened for signs of managerial ability, and his performance is reviewed and recorded by superiors every six months. Several hundred who show the greatest potential are listed in a confidential "black book" and methodically shifted from one job to another to test that potential. The best in the black book eventually rise to the "Greenbrier Group," a select party of executives who are invited every three years to a top-secret meeting in Greenbrier, W. Va., where they study G.M.'s past, reflect upon its present and try to chart its future.

Last week one of the Greenbrier

Group, a man who has been watched, tested and evaluated for 38 years moved into the presidency of the world's largest industrial company becoming only the sixth man to assume the post in 42 years. He is James Michael Roche, 58, whose job as chief operating officer places him second in command—and makes him a likely successor—to Board Chairman Frederic Donner, 62, the chief executive officer. Roche, who succeeds retiring John Gordon, 65, has a particular qualification that boosted him over three or four other contenders and provides a telling indication of G.M.'s plans. The qualification: considerable knowledge of international business, gained as the executive vice president in charge of all G.M.'s overseas operations.

Ahead Abroad. G.M. is planning to move more deeply into the overseas market, which last year accounted for 3% of all its sales. At home it is faced with increasing Ford and Chrysler competition—which has reduced its share of the market to 49% from 1962's 2%—and conversely by the threat of antitrust action if it succeeds in raising its market share substantially. Besides G.M. is acutely conscious that for three years more autos have been produced abroad than in the U.S.

Under Roche, G.M.'s overseas sales m 1964 were 22% higher than in 1963 and double 1958 sales. New G.M plants as well as styling and engineering centers have been built or are rising in Britain, Germany, Belgium, Australia, New Zealand, South Africa, Mexico and Peru. In 1966, when all the construction that began under Roche is completed, G.M. will have doubled its 962 overseas production capacity.

In the Crown Colony. Roche's career is practically a textbook of G.M. managerial development. He joined G.M in 1927 as a statistician for Cadillac, remained with the division for 33 years, serving as personnel director, head of the business management department public relations man and sales manager

Along the way, he also picked up pro duction and engineering knowledge After three years as Cadillac's chief, he became corporate vice president in charge of distribution, then in 1962 was promoted to executive vice president.