empowering people was instrumental in chairman
and CEO Anne Mulcahy’s stunning turnaround
of Xerox. When Mulcahy was asked to
take the company’s reins from her failed predecessor,
Xerox had $18 billion in debt, and all
credit lines were exhausted. With the share
price in free fall, morale was at an all-time low.
To make matters worse, the SEC was investigating
the company’s revenue recognition
practices.
Mulcahy’s appointment came as a surprise
to everyone—including Mulcahy herself. A
Xerox veteran, she had worked in field sales
and on the corporate staff for 25 years, but not
in finance, R&D, or manufacturing. How could
Mulcahy cope with this crisis when she had
had no financial experience? She brought to
the CEO role the relationships she had built
over 25 years, an impeccable understanding of
the organization, and, above all, her credibility
as an authentic leader. She bled for Xerox, and
everyone knew it. Because of that, they were
willing to go the extra mile for her.
After her appointment, Mulcahy met personally
with the company’s top 100 executives
to ask them if they would stay with the company
despite the challenges ahead. “I knew
there were people who weren’t supportive of
me,” she said. “So I confronted a couple of them and said, ‘This is about the company.’”
empowering people was instrumental in chairmanand CEO Anne Mulcahy’s stunning turnaroundof Xerox. When Mulcahy was asked totake the company’s reins from her failed predecessor,Xerox had $18 billion in debt, and allcredit lines were exhausted. With the shareprice in free fall, morale was at an all-time low.To make matters worse, the SEC was investigatingthe company’s revenue recognitionpractices.Mulcahy’s appointment came as a surpriseto everyone—including Mulcahy herself. AXerox veteran, she had worked in field salesand on the corporate staff for 25 years, but notin finance, R&D, or manufacturing. How couldMulcahy cope with this crisis when she hadhad no financial experience? She brought tothe CEO role the relationships she had builtover 25 years, an impeccable understanding ofthe organization, and, above all, her credibilityas an authentic leader. She bled for Xerox, andeveryone knew it. Because of that, they werewilling to go the extra mile for her.After her appointment, Mulcahy met personallywith the company’s top 100 executivesto ask them if they would stay with the companydespite the challenges ahead. “I knewthere were people who weren’t supportive ofme,” she said. “So I confronted a couple of them and said, ‘This is about the company.’”
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