These 5 CEO leadership moves helped transform General Motors

These leadership takeaways are part of the new primetime series “CNBC Leaders Playbook,” with all new episodes airing Wednesdays at 10pm ET/PT. Hosted by CNBC’s Julia Boorstin, the series goes inside the minds of the world’s top business leaders to uncover how lasting success is built.

General Motors CEO Mary Barra says leadership isn’t about delaying difficult conversations.

Acting quickly the moment you know something is wrong protects people, trust and business, she says.

Less than a month after taking over as CEO, Barra faced the biggest crisis in GM’s history. A faulty ignition switch in the Chevrolet Cobalt and other vehicles could cause the car to stall, cut off power, and disable the airbags. It could also occur just before the collision.

The defect was linked to at least 54 head-on crashes and more than a dozen deaths. Once the full extent of the problem became clear, Barra took swift action.

She talks about bringing cross-functional teams together, holding daily meetings to get the facts, and basing every decision on a few clear principles. It’s about being transparent, putting the customer first, and making sure this never happens again.

Rather than trying to contain the damage, she said she faced this crisis head-on, communicated openly, took responsibility and made tough decisions that helped reset GM’s culture of safety and responsibility.

During the ignition switch crisis, Barra says he relied on facts, open communication and a clear focus on the customer. She credits this approach with creating a new atmosphere at GM, making transparency and accountability part of the culture rather than just a crisis response.

For Barra, agility isn’t about chasing every new trend, it’s about allowing GM to adapt to changes in the world without losing its footing.

That means rethinking where and how the company hires, investing more deeply in software and technology talent, and even expanding its presence in Silicon Valley, she says.

But Barra points out that the most important shift is underway, building a flexible assembly line that can produce both gasoline and electric vehicles.

As government policy, consumer demand and EV adoption all move in unpredictable directions, and technology evolves at breakneck speed, Barra says flexibility gives GM room to adjust without abandoning its long-term direction. Rather than treating GM’s 118-year history as a constraint, Barra aimed to turn it into a foundation upon which it could evolve.

Barra says she learned early on that leadership isn’t about giving orders and expecting people to conform.

Seeing how GM’s top leaders made decisions showed her that true alignment occurs when people understand the reason behind the call, not just the directive itself.

That lesson stuck with her, and she says it still shapes the way she lives her life today. It’s about slowing down, explaining your intentions, and taking people on a journey.

Correction: This article has been updated to reflect that General Motors is celebrating its 118th anniversary. A previous version of this article showed an incorrect diagram.