Effective Management Principles
Effective Management Principles by Mulcahy
Mulcahy devised a bold plan for recovery that included emphasis on customer and employee satisfaction, strengthening the core business by investing on it and addressing the company’s liquidity issues. The CEO utilized a back to basics technique and renewed focus on operational efficiency, which included capital expenditure reduction, sales reduction, and reduction of general and administrative expenses by almost 25% and shared its total debt by half (Mulcahy, 2004). However, it maintained its pursuit to innovation through R& D. She also asserted that proper communication was vital to the success of Xerox’s turnaround as she largely focused on paying attention to both the customers and the employees.
Mulcahy solicited honest feedback from various stakeholders regarding the challenges facing the company and used crisis as a motivator to work hard for a successful turnaround. She convinced various stakeholders that she understood what she was doing and advised them on what they could do to help the business. Mulcahy ensured that her employees were dedicated and empowered to align around a common set of goals and the resilience and optimism of the workforce greatly fueled the company’s resolve. She further committed the company’s vision to a paper, which was a fictitious Wall Street Journal article that described Xerox in year 2005 where she included what the company hoped to accomplish, performance metrics and the entire Xerox’s vision. The company has since then made her visions her reality (Mulcahy, 2004).
The Principles applied by Mulcahy
The Principles applied by Mulcahy are applicable in every form of business regardless of the financial status or the performance of the business. A transformative leader must learn and understand the art of communication, which involves talking with a lot of attentive listening. This would help in acquiring enough information deemed important in providing the solution to the problem facing a business. Moreover, communication assists in creating a good relationship with both employees and the customers. Most companies around the world that have learned what customer satisfaction entails such as maintaining good communication such as Tesco and Wal-Mart retail companies. Treating both employees and customers well is significant for every business. Raising level of confidence amongst shareholders would let the shareholders not to withdraw their investment and damage the company’s reputation (Mulcahy, 2004).
Innovation through Research and Development
Additionally, innovation through R&D makes the business stay a step ahead of competitors by ensuring that products and services remain up to date. Innovation also makes a company to be in line with what customers need and react more quickly to changing markets, customer expectations and check on improvements to be made in the products and services provided. For example, Apple has been on the forefront in innovation, which has steered it to be amongst the most innovative companies in the world.
Mulcahy’s Strategies for Success
Mulcahy’s strategies were actually unique especially the confidence she had in transforming the company and the fact that she maintained the core business principles yet the business turned out to be successful despite previous challenges. Maintaining good communication within the organization is another great strategy that I would apply in my organization by allowing for conferences, seminars, as well as open communication with any employee regardless of their positions (Mulcahy, 2004). I would also cut cost of production and any other cost to ensure production efficiency. Moreover, I will invest a lot of money in R&D in order to gain a competitive edge in the industry and ensure a high-level customer satisfaction. I would always want my organization to remain top in innovation, customer satisfaction and employee treatment. However, my innovation will be customer driven by checking on what the customers want to be improved and making it a reality.
Mulcahy, Ann. (2004). Former CEO Mulcahy on Turning Xerox Around. Stanford Graduate School of Business. Retrieved From https://www.youtube.com/watch?v=Q_hRTyllwC4