Anna Mulcahy Leadership

8/3/2019 Anna Mulcahy Leadership

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Leadershi

p InHighTechCompanyA XeroxCorporationStudy

By HandyFennyantoM9921801

Directed byProf LiaoWen Chih04-Jan-12


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XEROXINTRODUCTI

ONXerox is a global

maker and

marketer of

document

solutions such as

copiers and

printers. The

company also

provides services,

software andsupport for its

systems. Products

target graphic

arts, production

and office

markets. They

include the

Document Centre

490, the fastest

copier in its class,

and the Document

Centre ColorSeries50, the first color-

enabled digital

multifunction

copier.

Xerox today

manufactures and

sells a wide

variety of office

and production

equipment

including LCD

monitors, photocopiers, Xerox

phaser printers,

multifunction

printers, large-

volume digital

printers as well as

workflow software

under the brand

strategy of

Freeflow. The

impact of Xerox

Freeflow products

on the graphic

arts market and

the print industry

in general has

grown

exponentially

since May 2006,

largely as a result

of the Xerox

presence at IPEX

2006. Xerox also

sells and produce

scanners, digital

presses, fax

machines,

professional black

and white copiers,

and several other

products.

Xerox sells bothcolor and black

and white printers

under the Xerox

Phaser brand, with

the color

consumer model

starting at US$

299 and the most

expensive color

model costs US$

6799.

Through its

Developing

Markets

Operations (DMO),

Xerox conducts

business in such

emerging markets

as Latin America,

Russia, India, the

Middle East and

Africa. Xerox also

owns 25% of Fuji

Xerox, a joint

venture with Fuji

Photo Film thatsells products in

Asia

XEROX

CORPORATIO

N HISTORYXerox was

founded in 1906 in

Rochester as the

Haloid Company

which originallymanufactured

photographic

paper and

equipment. The

company

subsequently

changed its name

to Haloid Xerox in

1958 and the

simply Xerox in

1961. Xerox

known as the first

plain paper

photocopier which

is Xerox 914,

using the processof

Electrophotograph

y developed by

Chester Carlson.

This product was

so popular that by

the end of 1961,

Xerox had almost

$60 million in

revenue and

leaped over $500

million in just 4

years later.

The companyexpanded

substantially

throughout the

1960s by

developing Xerox

813 (1st desktop

plain paper

copier). It making

millionaires of

some long-

suffering investors

who had nursedthe company

through the slow

research and

development

phase of the

product. In 1960,

the Wilson Center

for Research and

Technology was

opened in

Webster, New

York, a research

facility for

xerography. Then

in 1961, the

company changedits name to Xerox

Corporation. Xerox

common stock

(XRX) was listed

on the New York

Stock Exchange

in 1961 and on


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the Chicago Stock

Exchange in 1990.

Later on laser

printer was

invented in 1969

and thisdevelopment

resulted in the

first commercially

available laser

printer, Xerox

9700, being

launched in 1977.

Laser printing

eventually

became a multi

billion dollar

business forXerox.

In 1970, under

company

president Charles

Peter McColough,

Xerox opened the

Xerox PARC

(Xerox Palo Alto

Research Center)

research facility.

The facilitydeveloped many

modern

computing

technologies such

as the graphical

user interface

(GUI), Laser

printing, WYSIWYG

text editors and

Ethernet. From

these inventions,

Xerox PARCcreated the Xerox

Alto in 1973, a

small

minicomputer

similar to a

modern

workstation or

personal

computer. This

machine can be

considered the

first true Personal

Computer, given

its versatile

combination of acathode-ray-type

screen, mouse-

type pointing

device, and a

QWERTY-type

alphanumeric

keyboard. But the

Alto was never

commercially sold,

as Xerox itself

could not see the

sales potential ofit. It was,

however, installed

in Xerox's own

offices, worldwide

and those of the

US Government

and military, who

could see the

potential. Within

these sites the

individual

workstations wereconnected

together by

Xerox's own

unique LAN, The

Ethernet. Data

was sent around

this system of

heavy, yellow, low

loss coaxial cable

using the packet

data system. In

addition, PARCalso developed

one of the earliest

internetworking

protocol suites,

the PARC

Universal Packet.

In 1979, Xerox

threw open its

doors to anyone in

the industry and

press, who might

be interested in

seeing theirdevelopments.

Several Apple

Computer

employees,

including Steve

Jobs, visited Xerox

PARC that day.

Jobs very

interested in WIMP

(Window, Icon,

Menu, and

Pointing deviceand think to

implement it to

Apple Lisa. Later

on Job invites

several key PARC

researchers to join

his company so

that they could

fully develop and

implement their

ideas. In the mid

1980, Appleconsidered to buy

Xerox and buy the

rights to the Alto

GUI and adopted it

into a more

affordable

personal

computer. Apple

Macintosh was

released in 1984

was the first

personal computerto popularize the

GUI and mouse

amongst the

public.

The company was

revived in the

1980s and 1990s,

through

improvement in

quality design and

realignment of its

product line.

Development of

digitalphotocopiers in

the 1990s and a

revamp of the

entire product

rangeessentially

high-end laser

printers with

attached

scanners, known

as Multi Function

Machines, or just

MFMs, these wereable to be

attached to

computer

networksagain

gave Xerox a

technical lead

over its

competitors.

Xerox worked to

turn its product

into a service,

providing acomplete

document service

to companies

including supply,

maintenance,

configuration, and

user support. To

reinforce this

image, the

company

introduced a

corporatesignature, "The

Document

Company" above

its main logo and

introduced a red

digital X. The

digital X

symbolized the


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transition of

documents

between the

paper and digital

world.

XEROXBANKRUPTC

YIn 1999 Xerox was

the largest

photocopier

maker in the

world. However in

2000 Xerox found

itself on the verge

of bankruptcy and

was facing a hostof problems. Sales

were eroding due

to electronic

media such as e-

mail, and

increased

competition from

smaller rivals with

cheaper products.

The company was

also carrying a

huge debt load,and its accounting

practices became

the subject of a

Securities and

Exchange

Commission

investigation

(SEC).

Soon after, Xerox

stock prices

dropped fell from

$64 to $4.43 and

the company

underwent a

significant

restructuring by

selling non-coreassets. In

December 2000,

Xerox announced

that it had

exhausted a $7

billion line of

credit, but that

$1.4 billion in cash

remained. Xerox

also lost US$ 20

billion in stock

market from April1999 until May

2000. While in

hand only have

$154 million in

cash.

In January 2001,

the New York Post

ran a report that

the company had

hired the head of

the Blackstone

Group as abankruptcy

advisor. Xerox

officials denied

the rumor, stating

that although they

had received the

services of

Blackstone, it was

as a financial

advisor and

nothing more.

The financial

struggles

continued until

Xerox Corporation

did what no one

expected it to do;the company

survived a brush

with bankruptcy

under the

direction of a CEO

who had no prior

experience

heading a

company. Anne

Mulcahy had

served in multiple

areas of thecompanys

business before

becoming CEO.

She told CNN that

although it

wasnt necessarily

done with the

intent of running

the business, I

found out that it

was a pretty good

set of skills andcapabilities to

have coming into

the job.

ANNE

MULCAHY

Anne M.

Mulcahy born

October 21, 1952

in Rockville

Centre, New York.

In 1974, she

received her BA in

English and

Journalism from

Marymount

College. 2 years

later after her

graduation, she

join Xerox

company. Mulcahy

joined Xerox as a

field sales

representative in

1976 and rose

through the ranks.

From 1992 1995,

Mulcahy was vice

president for

human resources,

responsible forcompensation,

benefits, human

resource strategy,

labor relations,

management

development and

employee training.

She become chief

staff officer for

Customer in 1997

and corporate

senior vicepresident in 1998.

Prior to that, she

served as vice

president and

staff officer for

Customer

operations,

Europe, Asia,

Africa and China.

Though never

intent on running

Xerox, she waselected by the

board of directors

in 2001 to become

CEO on August

1,2001. And later

on become

chairwoman on

January 1, 2002.

Mulcahy currently

serves on four

other Boards of

Directors besideXerox. She also

serves on

Catalyst,

Citigroup, Fuji

Xerox and Target

Corp.


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MULCAHY

STRATEGY The key person

behind Xerox

turnaround isMulcahy decision

as a CEO. In order

to avoid Xerox

from bankruptcy,

she take a lot of

extreme way

which people

classified it as a

nonsense action.

To avoid the

bankcruptcy,

Mulcahy come out

with three

strategy which is

raise cash, reduce

expenses and

improve

efficiency.

1. Turn downShareholder

petitions to

shut down R &

D cost. At that

time Xeroxspent $1

billion

developing a

commercial

digital color

printer, called

the iGen3 for

items usch as

personalized

catalogs,

newsletters

and brochures.2. She cut more

than 28,000

employees, or

nearly 30% of

its workforce,

bolstered cash

to $2.2 billion

as of its most

recent quarter,

and raised

about $2.5

billion (out of a

goal of $4

billion) from

asset sale3. Sold half of its

office-copier

manufacturing

operations to

Flextronics

for $220

million, and in

early

September it

sold most of

its financing

business to GECapital and

receive $2.7

billion

4. Sold half of itsshare on Fuji

Xerox to Fuji

Photo Film.

5. Paid US$ 10million to

settle the

SECs two year

investigation.

It later

restated all of

its part

financial

resulst as

required under

the

agreement.

Because of

this the

company

successful in

working with

creditors in

renegotiating

its debt

obligations to

more

manageable

terms.

Perhaps most

important, the

company's

products are

now more

competitive interms of price

and quality

6. Sold off XeroxChinese and

Hongkong

operations.

7. Lobby 58banks to get

to renew

company

credits

After all the action

has being taken. A

year later in 2002,

Xerox returned to

profitability.

Revenue for the

second quarter fell

8% year-to-year

but increased

2.4% sequentially

to $3.95 billion.

Gross profit

increased by 3.4%

points to 42.5%.

The company

enchanced its

liquidity position

by generating

$541 million in

operating cash

flow and repaying

$2.8 billion of

bank debt. In the

end Xerox still has

$1.9 billion in

cash. Following

the next year in

2003. Xerox

reported net

income significant

rise from $91

million to $360

million. Rise up in

EPS and debt

declining from

$14.2 to $11.2

billion.

All this extreme

action make the

Xerox itself finally

avoid the

bankcrupty in year

200. Later on

during mulcahy

years as CEO, she

made a lot of

such as :

1. Brought 40

new productsto marketproducts thatset newindustrystandards forthe creation ofcustomervalue andwhichgarneredsome 230industryawards.

2. We weregranted 525

utility patents

in the United

States alone a

sign that our

best days are

ahead of us.

3. Decreasing

debt and

increasing

income, EPS

year by year.4. Purchase two

well

performing

company

XMPie and

Amici


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MULCAHY

LEADERSHIPMulcahy

leadership during

the 2001 2009

indeed is a greatone. From the

beginning public

very pessimistic

that Xerox can

avoid the

bankruptcy so

fast. But Mulcahy

herself prove her

great leadership

and work, turn the

company making

profit only in one

year.

She listed severalbasic leadershipguidelines: A good leader

will recognizewhat she doesnot know andbe willing tolearn all thetime.

A leader must

believe in thevalues andprinciples sheespouses andmust "walk thetalk" with totalconsistency.

A leader must

have a clearvision ofwhere shewants thecompany togo. Xerox, shesaid, had longhad a goodvision but hadnot actedforcefully toimplement it.

A leader must

give others

power to makedecisions.

Mulcahy said that

effective

communication

was perhaps thesingle most

important

component of the

company's

successful

turnaround

strategy. When

she become spent

the first 90 days

on planes

traveling to

various offices andlistening to

anyone who had a

perspective on

what was wrong

with the company.

Good managers,

she said,

recognize their

own shortcomings

and find others

who are strong inthose areas. To

spur this process,

Xerox encourages

managers to

constantly assess

their own

performance and

to receive

feedback from

associates, both

above them and

below. Today,Xerox managers

are involved in

sweeping "360

degree"

assessments from

subordinates and

superiors four

times a year.

Twice a year,

Mulcahy conducts

four day

chairmans

forums with

promising peoplewith whom she

otherwise would

have little contact.

In addition to

business

discussions, the

forums include

events such as

Outward Bound

type experiences,

designed to build

personalrelationships.

Mulcahy said that

there comes a

point at which

ones strengths

and weaknesses

are realtively

fixed. Her own

strength is in

operations, she

said, and she finds

others to shore upher weaknesses in

strategic thinking.

Under Mulcahy

leading vision,

Xerox is a

document

management

company. It

focuses on

technologies like

scanning, imagingand content

management and

search. It has long

been known as an

innovator, and it

remains

committed to

research and

development.

Even during the

worst of the

financial

difficulties,

Mulcahy spared

her researchersfrom cuts. Still,

she expected

them to work

smarter. She

charged her

research centers --

Xerox has four in

North America and

Europe, with

devising ways to

generate higher

returns on theirwork. Protecting

research and

development

allowed Xerox to

roll out a wealth of

new offerings as

its financial health

improved. In 2004

about three-

quarters of the

company's

revenue comesfrom products and

services

introduced in the

last two years.

In term of

democracy at

work, Mulcahy

thinks that

Executives must

create a

workplace whereworkers feel

secure in giving

honest,

constructive

feedback. They

have to know that

they won't be

penalized for


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speaking up and

that their bosses

take their

suggestions

seriously.

During herleadership, there

are lots of

appreciation

achieved by

Mulcahy because

of her leadership

such as :

CEO of the

Year 2008 by

Chief

Excecutive

Magazine One of the 50

women to

watch in 2005

by Wallstreet

Journal

The 6th

position for

the Most

powerful

woman in

America in

2005 byForbes

Magazine

America Best

Leaders in

2008 by US.

News and

Report

ANOTHER

LEADERSHIP

STORYSTEVE JOBS -APPLE INC.

Almost no one

reject that Steve

Jobs, Founder of

Apple Inc is one of

the famous leader

in mankind

history. His

leadership style

known as follow :

1. Persistence

is the key

Steve Jobs wasa very

persistent

person and it

was most

exempilifed

through his

exit from

Apple. He

would not give

up, but went

on to start

NeXTcomputers

which would

eventually be

acquired by

Apple

Computers

Inc.

If Jobs was like

most people,

he would have

given up and

spent the restof his life

being bitter

about his loss.

As a leader,

you have to be

ready to face

setbacks.

Setbacks are a

part of life and

whether you

become

successful ornot often

depend on

your ability

not to give up.

It is all the

more

important to

display this

attribute,

especially if

you want to

build a never-

say-die team.

2. Innovation

bringsleadership

Jobs saw the

power of

innovation in

building his

company. Till

today, we can

see the

innovating

power of Apple

Computers Inc

as it continuesto take market

leadership in

the industry.

If you want to

maintain your

leadership,

you have to be

the one whos

constantly up

with new

ideas, new

initiatives, allin the spirit of

moving your

organizational

mission

forward. In

whatever

industry

youre in, your

constant

innovation in

alignment with

your missionwill keep you

ahead of the

pack.

One of his best

quotes is

"Innovation

comes from

people

meeting up in

the hallways

or calling each

other at 10:30

at night with a

new idea, or

because theyrealized

something

that shoots

holes in how

we've been

thinking about

a problem. It's

ad hoc

meetings of

six people

called by

someone whothinks he has

figured out the

coolest new

thing ever and

who wants to

know what

other people

think of his

idea."

ANDY GROVE -

INTEL CORPIs Andy Groove,

the third CEO of

Intel Corp who

bring the

company turn out

to a billion dollar

company today.

There are a lot of

decisions during

his leadership, but

the most

important one isthe transformation

of Intel Corp from

semiconductor

company to

microprocessor

company. That

one of the reason

Intel can be


8/10

success as the

microprocessor

company with the

biggest market

share as today.

Soon after hebecome CEO, he

become more

involved in

strategic decision

making, including

establishing

markets for new

products,

coordinating

manufacturing

processes, and

developing newpartnership with

smaller company.

He helped create

the Intel

Architecture

Laboratory (IAL) in

Oregon to ensure

that software was

developed in time

to take advantage

of their new

microprocessors.

Grove created a

culture within Intel

that allowed

innovation to

flourish. As CEO,

he wanted his

managers to

always encourage

experimentation

and prepare for

changes, makinga case for the

value of paranoia

in business. He

said that a

corporation is a

living organism; it

has to continue to

shed its skin.

Methods have to

change. Focus has

to change. Values

have to change.

The sum total of

those changes is

transformation.

Describe by one of

his partner, Grove

encouraged

employees to

speak their minds

and debate with

him. Everything

that he do, he will

make sure every

important details

things. He wasvery disciplined,

precise and detail

oriented, but at

the same time he

has an element of

intuition and

creativity that is

fundamental to

Intel innovation.

LESSON FOR

LEARNHigh tech

Firm/company

have similarity

which is they are

very focused in

Innovation.

Research and

Development is a

core department

in order to

produce

innovation and

because of that,

its so important

to keep this

certain

percentage in RnD

to keep innovation

going forward.

Leader leadership

play an important

role in hightech

firm. Their vision

about the

companydetermined where

the company

should go. Their

attitude influence

workers to work

and their

surrounding. Their

decision will have

a great impact,

not only for inside

company, also

outside company.

From turnaround

of Xerox Corp,

Apple Inc and Intel

Corp, as leader I

learn that

1. We need to

move as fast

as we can in

crisis situation.

When we have

window,identify the

failure quickly

and get out

from it.

2. Adaptabilityand flexibility

are important.

Known

strength and

weakness also

important. Go

with yourstrength as

well as fix your

weakness.

3. Communication between

excecutive,

employee and

clients are

essential.

Gather opinion

employee and

clients also

give employee

opportunity tobe creative

will generate a

great

outcome.

4. Focus andpersistence on

the vision that

have being

created. As

leader need to

focus and

keep the planexcecuted and

creating

followership.

As follower,

its important

to follow

leaders vision.

5. Dont get into

comfort and

structure

zone. Change

ortransformation

needed if its

necessary

even that its

not easy to

change.

6. Keep thedemocracy.

Need to

appreciate

every thinking

of people, not

only the top

management,

but also the

employee.

Make sure

everyone idea

being deliver


9/10

well to be hear

by leader.

7. Maintain the

lead by keep

the idea up. To

become the

leadingcompany in

the field, its

necessary to

always bring

up the new

technology. As

well as Xerox

and Canon,

Apple and

Samsung, Intel

and AMD.

Xerox, Appleand Intel are

the leader in

their fields. To

keep this

company keep

lead their

field, its

necessary to

keep bring

innovation up.

8. Make

decisions andknown the

responsibility

wheather its

have both side

good and bad,

just like

Mulcahy, cut

28.000 jobs is

bad for

employee, but

its no other

way in order tosave

company.

CONCLUSIONIn relation with

Leadership style.

Its didnt have

any exact style to

describe leader in

high tech firm. In

one side they

need to run the

company based

on their vision, butin other side they

need to keep

democracy to

keep the creativity

that bring

innovations.

Some people may

say that Steve

Jobs most likely

autocratic leader,

because he runthe company very

tight based on his

vision, but at

some side he was

also democratic.

As well as Anne

Mulcahy, in some

way she need to

be autocratic, also

be democratic. So

in the end they

need to beflexible.

Leader should

have good

personal

characteristic.

They need to keep

passion,

intelligence,

optimism,

charismatic, high

socialibility andresponsible in

pursuit their goals.

In high tech

company, in order

to change, leader

will lead it while

keeping the most

essential things

and culture which

is innovation and

communication to

bring the

company to a

better future.


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Anna Mulcahy Leadership