(FORTUNE Magazine) – Ask Jack Smith if there are any GM CEOs he identifies with, and he replies, "We're focused in on Sloan. He came in when the place was upside down and got it straightened out." That's an understatement. Sloan took over GM in 1920 when it was close to bankruptcy and Henry Ford still ruled the world. When he retired as chairman in 1956, GM had become the largest auto company on earth. With FORTUNE editor John McDonald, Sloan wrote My Years With General Motors, describing how he created GM's decentralized but coordinated management system.

Smith never met the austere Sloan, who died in 1966 at age 90. But history has linked them together. Consider these similarities:

-- EVENTS LEADING TO THEIR APPOINTMENT AS CEO SLOAN: The board of directors was dissatisfied with incumbent CEO William Crapo Durant. SMITH: The board of directors was dissatisfied with incumbent CEO Robert Stempel.

-- WHAT PRECIPITATED THE MANAGEMENT CHANGE SLOAN: Sales were falling in an economic downturn, and GM was short of cash. SMITH: Sales were falling in an economic downturn, and GM was losing its credit rating.

-- WHY GM WAS PERFORMING POORLY SLOAN: Excess inventory, overlapping product line, lack of operational and financial controls. SMITH: Excess capacity, confused product line, failure of operational and financial controls.

-- SOURCE OF PRODUCT LINE CONFUSION SLOAN: Divisions operated independently, and some cars competed head-to-head. SMITH: Ditto.

-- NEW FINANCIAL YARDSTICK INTRODUCED SLOAN: Return on invested capital. SMITH: Return on net assets.

-- NO-BRAINER MOVE TO SAVE MONEY SLOAN: Centralize purchasing. SMITH: Centralize purchasing.