Management Practices and

Failures
By:- Gaurav Singh
Vikas Kumar
Lucky Sharma
Ashish Singh
Somtey Sailo
Rashmi Kumari
Akash Mishra
1he AuLhor 1lmellne
W 1924 8orn Lldo AnLhony lacocca
ln AllenLown ennsylvanla
W 1946 Landed flrsL [ob aL lord MoLor
Company as an englneerlng Lralnee
W 1964 lord rolled ouL Lhe MusLang pony car lcocca promoLed Lo head of Lhe
companys lord dlvlslon
W 1966 CnemllllonLh MusLang bullL wlLhln Lwo years
W 1970 8ecame presldenL of lord
W 1973 lord MusLang ll was lnLroduced
W 1978 llred by Penry lord ll
W 1979 8ecame Chryslers CLC
W 1980 resldenL CarLer slgned Lhe Chrysler Corp Loan CuaranLee AcL provldlng
$13 bllllon ln loan guaranLees whlch were used Lo save and rebulld Chrysler
W 1983 Chrysler pald back governmenL loan ln full and a full seven years early
1he lord SLory
W !olned lord MoLor ln 1946
W AfLer a brlef sLlnL on
englneerlng moved Lo sales and markeLlng where hls
career flourlshed
W Pls maverlck sLreeLsmarL Lhlnklng on your feeL
approach lnduced breakLhrough programs llke 36 for
36" whlch won naLlonal acclalm
W AnoLher legendary pro[ecL was 1964 MusLang
W Pls use of markeL research hls wllllngness Lo llsLen
and hls readlness Lo Lake rlsks lnLroduclng new
producLs made hlm a sLrong buslness force
Management is nothing more than motivating other people.
1he 8lslng
W Was responslble for Lhe
Llncoln ConLlnenLal Mark lll
Lhe lord llesLa and Lhe revlval of Lhe Mercury brand
W romoLed oLher ldeas whlch dld noL reach Lhe markeLplace as
lord producLs
W Was made resldenL of lord on uecember 10 1970
And so, after ten years of preparation, became an overnight success
1he 8reakup
W 8y Lhe end of 1973 Lee and
Penry lord ll began Lo have a
personallLy confllcL
W lord osLs a $2 bllllon proflL ln 1978
W lacocca ls flred from lord aL Lhe rlpe age of 34
W Pe was [usL monLhs away from reLlremenL!!!
W 3 monLhs laLer lacocca's wlfe has an hearL aLLack
enry Ford : Sometimes you just don't like somebody
1he Second lnnlngs Chrysler Corp
etroit Press : 'Chrysler Losses Are Worst Ever', 'Lee acocca joins Chrysler'
W nov 2 1978
Chrysler had $160 mllllon losses
no coordlnaLlon
LlquldlLy crunch
Low morale
lndusLrlal spylng
Loslng consumer loyalLy
oor quallLy
Sales 8ank
Iacocca Io|ns Chrys|er
W Lee sells Chrysler Lurope Lo eugeoL 8rlngs AssoclaLes from
ford sLarLs 'MlnlMax' ro[ecL lays of workers and rebullds
company from Lhe ground up and
AL Chrysler
W Lhe counLry wlLnessed one of Lhe greaLesL economlc dramas ln
hlsLory as Chrysler sLruggled Lo geL back on lLs feeL
W lnLroduced kcars
W Cmnl and Porlzon became lnsLanL hlLs
selllng over 300000 unlLs each ln Lhelr
debuL year
W lronlcally concepL of kcars was
proposed by Lee when he was ln lord
buL Pl2 dld noL wanL anyLhlng Lo do wlLh
small cars!!!
W now Chrysler wenL ahead of lord wlLh Lhese cars
1he Loan
W ln 1979
Chrysler on verge of 8ankrupcy
lalled Lalks on Loan rocuremenL
lalled Lalks on sellouL Lo volkswagon
Lee approached uS Congress for Loan CuaranLee
W CounLry fumes should chrysler be saved?
W $13 bllllon loan ls granLed
W ln 1981
Loss of $4783 mllllon
roposed merger beLween lord and Chrysler
8ankrupcy slLuaLlon agaln
AddlLlonal $600 mllllon concesslon
1he Loan (ConLd)
W 1983
LosL hls wlfe
Chrys|er ays back |oan to Govt fu|| 7 years ear|y!!!
W 1he turnaround |s comp|ete
W Aqulres AMC 8rlngs !eep dlvlslon Lo Chrysler
W 8eLlres from Chrysler ln 1993
1he 8ook
W CoauLhored by Wllllam novak
W ubllshed ln 1984
W MosL of Lhe book ls Laken up wlLh
remlnlscences of lacoccas career ln Lhe car lndusLry
flrsL wlLh Lhe lord MoLor Company Lhen Lhe Chrysler
CorporaLlon
W Was Lhe besLselllng nonflcLlon hardcover book of
1984 and 1983
Good leaders know how to follow their people.
-|ne C's of Leadersh|p
1 Cu8lCSl1?
2 C8LA1lvL
3 CCMMunlCA1L
4 CPA8AC1L8
3 CCu8ACL
6 CCnvlC1lCn
7 CPA8lSMA
8 CCML1Ln1
9 CCMMCn SLnSL
CUkICSI1
#A Leader has Lo llsLen Lo people ouLslde of Lhe #?es slr" crowd ln
hls lnner clrcle Pe has Lo read voraclously because Lhe world ls a
blg compllcaLed place" lnqulry ls Lhe foundaLlon for lnnovaLlon
Pow do we pracLlce Lhls ln Lhe corporaLe workplace? llrsL by
leaders acknowledglng LhaL Lhey don'L have all Lhe answers and LhaL
Lhe answers wlll come Lhrough dlalogue and llsLenlng Lo people ln
Lhe organlzaLlon 1he besL leaders make a hablL of faceLoface
lnvolvemenL and acLlve llsLenlng wlLh Lhose on Lhelr Leam and wlLh
Lhelr cusLomers 1hey ask open ended quesLlons and sLlr peoples'
lmaglnaLlon Lo address challenges ln addlLlon Lo geLLlng a clear
plcLure of how employees are seelng Lhelr world and generaLlng
poLenLlal flxes Lhls vlslblllLy and dlalogue also forms a bond
beLween Lhe leader and Lhose on Lhe work Leam lacocca goes on Lo
say #lf a leader never sLeps ouLslde hls comforL zone Lo hear
dlfferenL ldeas he grows sLale lf he doesn'L puL hls bellefs Lo Lhe
LesL how does he know he's rlghL? 1he lnablllLy Lo llsLen ls a form of
arrogance lL means elLher you Lhlnk you already know lL all or you
[usL don'L care" As !ohn l kennedy sLaLed #Leadershlp and
learnlng are lndlspensable Lo each oLher"
CkLA1IVL
#A leader has Lo be C8LA1lvL go ouL on a llmb and be
wllllng Lo Lry someLhlng dlfferenL ?ou know Lhlnk
ouLslde Lhe box Leadershlp ls all abouL managlng
changewheLher you're leadlng a company or leadlng a
counLry 1hlngs change and you geL creaLlve ?ou adapL"
Leadershlp ls abouL sLaylng ahead of Lhe change curve
more Lhan [usL keeplng pace and ad[usLlng lL ls
anLlclpaLlng and Lhlnklng ouLslde of your hablLual ways of
respondlng Many of our cllenLs have faced resource
reducLlons and downslzlngs We work wlLh Lhem Lo
examlne prlorlLles renegoLlaLe levels of servlce and
move Lo creaLe a workplace LhaL ls more lnnovaLlve and
lnsplrlng As LlnsLeln sLaLed #1he slgnlflcanL problems
we have cannoL be solved aL Lhe same level of Lhlnklng
wlLh whlch we creaLed Lhem"
CCMMU-ICA1L
#A leader has Lo CCMMunlCA1L l'm noL Lalklng abouL runnlng
off aL Lhe mouLh or spouLlng sound blLes l'm Lalklng abouL
faclng reallLy and Lelllng Lhe LruLh CommunlcaLlon has Lo sLarL
wlLh Lelllng Lhe LruLh even when lL's palnful" 1he besL leaders
we have worked wlLh over Lhe years are Lhe ones who
lncreased Lhelr vlslblllLy and personally meL wlLh employees
durlng Lhe LoughesL Llmes 1hey were lnvolved and Lhey cared
1hey communlcaLed whaL Lhey could and lf Lhey dld noL know
Lhe answer Lhey would say so 1hey were upfronL As a resulL
people LrusLed Lhem and belleved whaL Lhey sald Lmployees
felL a cerLaln level of securlLy knowlng LhaL lnformaLlon would
be shared lf aL all posslble 1hey dld noL have Lo wonder whaL
Lhey mlghL be mlsslng or whaL klnd of lnformaLlon was belng
wlLhheld 1hey felL secure ln Lhe knowledge LhaL Lhey would be
kepL ln Lhe loop A greaL plece of advlce comes from a quoLe by
Wllllam 8uLler ?eaLs #1hlnk llke a wlse man buL communlcaLe
ln Lhe language of Lhe people"
CnAkAC1Lk
#1haL means knowlng Lhe dlfference beLween
rlghL and wrong and havlng Lhe guLs Lo do Lhe
rlghL Lhlng Abraham Llncoln once sald 'lf you
wanL Lo LesL a man's characLer glve hlm
power'" Ablgall van 8uren (le uear Abbey)
deflnes characLer as #(a) how he (or she)
LreaLs people who canL do hlm any good and
(b) how he (or she) LreaLs people who canL
flghL back" CorporaLe leaders who are admlred
amongsL employees are Lhose who LreaL
everyone regardless of level as an lmporLanL
parL of Lhe organlzaLlon
CCUkAGL
#Swagger lsn'L courage 1ough Lalk lsn'L courage Courage ls a
commlLmenL Lo slL down aL Lhe negoLlaLlng Lable and Lalk lL ls
meeLlng wlLh employees faceLoface even Lhough you know
Lhere wlll be Lenslon and you may noL have all Lhe answers" As
Mark 1waln sLaLed #Courage ls masLery of fear noL absence
of fear" ln my experlence durlng Llmes of change mosL corporaLe
leaders shy away from meeLlng wlLh employees unLll everyLhlng
ls #Llcked and Lled" (as my llnance frlends say) and Lhey can face
employees wlLh all Lhe answers MosL of Lhe Llme Lhls means
LhaL a leader doesn'L meeL wlLh employees and ls noL vlslble as
seldom ls everyLhlng #buLLoned up" 1he answer ls for leaders Lo
conslsLenLly meeL wlLh employees LSLClALL? when Lhey don'L
have all Lhe answers lL Lakes courage and confldence Lo do Lhls
lL also Lakes bellef LhaL Lhe process of meeLlng and Lalklng ls
lmporLanL and wlll lead Lo lmproved relaLlons and poslLlve
resulLs
CC-VIC1IC-
#1o be a leader you've goL Lo have CCnvlC1lCna
flre ln your belly ?ou've goL Lo have passlon ?ou've
goL Lo really wanL Lo geL someLhlng done" As we
work wlLh corporaLlons l flnd Candhl's words very
approprlaLe #no uLLered from deepesL convlcLlon
ls beLLer and greaLer Lhan a ?es merely uLLered Lo
please or whaL ls worse Lo avold Lrouble"
ConvlcLlon ls speaklng whaL you belleve 1rue
leadershlp ls speaklng whaL you belleve whlle aL Lhe
same Llme llsLenlng Lo and appreclaLlng Lhe
convlcLlons of oLhers A LruLhful and honesL
dlscusslon leads Lo acknowledgemenL of crlLlcal
lssues lL also creaLes a cllmaLe LhaL enables oLhers Lo
become lnvolved ln Lhe soluLlon
CnAkISMA
#A leader should have CPA8lSMA l'm noL Lalklng abouL
belng flashy Charlsma ls Lhe quallLy LhaL makes people
wanL Lo follow you lL's Lhe ablllLy Lo lnsplre eople
follow a leader because Lhey LrusL hlm 1haL's my
deflnlLlon of charlsma" And l would add Lhls LrusL ls
based upon belng auLhenLlc l am auLhenLlc when who l
am and how l come across Lo oLhers maLches eople can
LrusL LhaL l wlll be conslsLenL Wlklpedla proposes LhaL
#charlsmaLlc lndlvlduals generally pro[ecL unusual
calmness confldence asserLlveness domlnance
auLhenLlclLy and focus and almosL always possess
superb communlcaLlon and/or oraLorlcal skllls" l have
found LhaL leaders wlLh charlsma pro[ecL noL only
confldence asserLlveness and focus buL also Lhelr bellef
ln people and Lhelr ablllLy Lo succeed
CCML1L-1
#A leader has Lo be CCML1Ln1 1haL seems obvlous
doesn'L lL? ?ou've goL Lo know whaL you're dolng More
lmporLanL Lhan LhaL you've goL Lo surround yourself wlLh
people who know whaL Lhey're dolng A leader has Lo be
a problem solver " Leadershlp compeLence ls
demonsLraLed ln effecLlvely leadlng Lhe people of an
organlzaLlon Lo accompllsh Lhelr ob[ecLlves ln pursulL of
Lhelr vlslon 1hls concepL ls relnforced ln Wlklpedla
#managemenL compeLency lncludes Lhe LralLs of sysLems
Lhlnklng and emoLlonal lnLelllgence and skllls ln
lnfluence and negoLlaLlon" CompeLenL corporaLe leaders
see Lhrough Lhe complexlLy Lo Lhe blg plcLure and have
Lhe lnLerpersonal skllls needed Lo draw Lhe besL ouL of
people whlle accompllshlng Lhe goals of Lhe organlzaLlon
CCMMC- SL-SL
#?ou can'L be a leader lf you don'L have CCMMCn SLnSL l call
Lhls Charlle 8eacham's rule When l was a young guy [usL sLarLlng
ouL ln Lhe car buslness one of my flrsL [obs was as lord's zone
manager ln Wllkes8arre ennsylvanla My boss was a guy
named Charlle 8eacham who was Lhe LasL CoasL reglonal
manager Charlle was a blg SouLherner wlLh a warm drawl a
huge smlle and a core of sLeel Charlle used Lo Lell me
'8emember Lee Lhe only Lhlng you've goL golng for you as a
human belng ls your ablllLy Lo reason and your common sense lf
you don'L know a dlp of from a dlp of vanllla lce cream
you'll never make lL'" A quoLe by Calvln Lllls SLowe sums up
common sense #Common sense ls Lhe knack of seelng Lhlngs
as Lhey are and dolng Lhlngs as Lhey oughL Lo be done" Common
sense ls lmporLanL as l flnd #Cne pound of learnlng requlres
Len pounds of common sense Lo apply lL"
1hank ?ou
Motivation is everything.
You can do the work of
two people, but you can't
be two people. nstead,
you have to inspire the
next guy down the line
and get him to inspire
his people.
Apply yourself. Get all
the education you can,
but then, by God, do
something. on't just
stand there, make it
happen.
n the end, all business
operations can be
reduced to three words:
people, product and
profits. Unless you've got
a good team, you can't do
much with the other two.
f you want to make
good use of your
time, you've got to
know what's most
important and then
give it all you've
got.
have found that
being honest is the
best technique can
use. Right up front,
tell people what
you're trying to
accomplish and
what you're willing to
sacrifice to
accomplish it.