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Organization Behavior Essay

➢ Anne Mulcahy at the age of 23 she was the director of human resources, head of the Xerox

➢ She spent her first 16 years company’s fledging desktop computer business, and chief in sales, then eight years in an assortment of management of staff to Xerox’s CEO.

➢ She never aspired to run Xerox nor she was groomed to be CEO. In 2001 she became the CEO of Xerox.

➢ She accepted the position when the company was in horrible financial shape. It had $17.1 billion in debt and only $154 million in cash. It was about to begin seven straight quarters of losses.

➢ Mulcahy felt a deep loyalty to the company. She felt an obligation to do everything in her power to save Xerox. Duty and loyalty compelled her to take a job that nobody else really wanted, despite the fact that she had zero preparation.

➢ She didn’t know financial analysis. She had no MBA and her undergraduate degree was in English/journalism. So she asked the company’s director of corporate finance to give her a cram course in Balance Sheet 101. He helped her to understand debt structure, inventory trends, and the impact of taxes and currency rates.

➢ This allowed her to see what would generate cash and how each of her decisions would affect the balance sheet. Mulcahy says now that her lack of training had its advantages. She had no preconceived notions, no time to develop bad habits.

➢ She appealed to employees with missionary zeal, in videos and in person to “save each dollar as if it were your own. In 2002, for instance, she gave all employees their birthdays an off. The gentle pressure was vintage Mulcahy: Work hard, measure the results, tell the truth, and be brutally honest.

➢ After less than two years as CEO, Mulcahy has made startling progress in turning Xerox around. Employees appreciated her truthful and straightforward style. They also liked the fact that she was willing to work shoulder to shoulder with subordinates

➢ She was working hard, people felt obligated to work harder too. But Mulcahy is no softy. She’s smart, energetic, tough but passionate.

➢ She showed the ability to make hard decisions. For instance, she slashed costs in part by cutting Xerox’s workforce by 30 percent and she shut down desktop division. She oversaw the streamlining of production, new investment in research and development, and restructured the sales force so vague lines of authority became clear. She met with bankers and customers.

➢ In 2003, Xerox had had four straight quarters of operating profits. The company’s stock was up to $11 a share. And while Xerox’s future was still far from secure, at least it was beginning to look like the company would have future. 1. How did Anne Mulcahy create trust with employees after becoming CEO?

➢ We see that Anne Mulcahy is the ultimate loyal employee in Xerox. She represented herself as a Savior who would deliver them from the storm though she didn’t have any vision nor she was trained but she was determined in doing her task. Duty and loyalty compelled her to take a job that nobody else really wanted.

➢ Though she didn’t have any knowledge in financial aspects she learned in the short span of time and took initiative to cut costs by using strategies like reducing the work force, which was a smart move of cutting cost, and she restructured sales force, etc.

➢ She appealed to employees with missionary zeal, in videos and in person to “save each dollar as if it were your own”

➢ She believed in these words that it is an era to work hard, measure the results, tell the truth, and be brutally honest.

➢ That is how employees, appreciated her truthful and straightforward style. They also liked the fact that she was willing to work shoulder to shoulder with subordinates

2.Did Mulcahy have a vision for Xerox? Explain.

Anne Mulcahy had no vision or any aspiration to run Xerox. We can see this as initially when the Xerox’s board chose her as CEO of Xerox. She was neither groomed nor aspired for this position. But she accepted the position with a mixed feeling. She took the position when the company was dooming. She had a deep loyalty to the company and she realized her responsibility to save Xerox although she was not prepared.

But she had a determination to save Xerox.

3. What qualities do you think helped Mulcahy to affect the turnaround at Xerox?

➢ Charismatic quality: – She has an inborn quality to stand in any kind of situation that is a special quality of determination to serve her company.

➢ She also had inner qualities like self-confidence, Problem-solving ability. When she took the position of CEO the company was in horrible financial shape. A leader needs lots of self-confidence in such situation, which Anne Mulcahy had.

➢ She stood to save her company and sole the crisis. Mulcahy wasn’t groomed for the CEO position is a true understatement. For instance, she didn’t know financial analysis. She had no MBA and her undergraduate degree was in English/journalism. So she asked the company’s director of corporate finance to give her a cram course in Balance Sheet 101. He helped her to understand debt structure, inventory trends, and the impact of taxes and currency rates. This allowed her to see what would generate cash and how each of her decisions would affect the balance sheet. Mulcahy says now that her lack of training had its advantages. She had no preconceived notions, no time to develop bad habits.

➢ Passionate: – She was passionate in doing her work and also influenced others to follow her and she believed that employees should “Work hard, measure the results, tell the truth, and be brutally honest.”

➢ She also had other qualities like smartness, energetic, tough but passionate

4.What does this case say about leadership experience?

Through this case we can see that Anne Mulcahy is a successful leader. Why a leader? Because she was a shepherd to her company leading her sheep’s. And Anne Mulcahy is said to be a leader as she lead her people to follow her.

A Leader is an individual person who initiates and implements that is what Anne Mulcahy did. She can be called a Transformational leader as she implemented changes. For instance she slashed costs in part by cutting Xerox’s workforce by 30 percent and she shut down desktop division.

She oversaw the streamlining of production, new investment in research and development, an restructured the sales force so vague lines of authority became clear. She met with bankers and customers. Most importantly, she traveled. She galvanized “the troops” visiting Xerox offices—sometimes hitting three cities a day—and inspiring employees.

This is what matters as a leader to influence people to follow them. And she led her company from “rags to riches”


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