The Saga of Lee Iacocca
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About the Leader LEE IACOCCA
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Lee Iacocca
Iacocca was born in Allentown, Pennsylvania to Nicola Iacocca and Antonietta Perrotta, Italian immigrants (from San Marco dei Cavoti, Benevento) who had settled in Pennsylvania's steel making belt and operated the restaurant, Yocco's Hot Dogs.
Iacocca graduated from Allentown High School in 1942, and Lehigh University in neighboring Bethlehem, Pennsylvania, with a degree in industrial engineering.
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He is a member of Tau Beta Pi, the engineering honor society, and an alumnus of Theta Chi Fraternity.
Career at Ford
After graduating from Lehigh, he won the Wallace Memorial Fellowship and went to Princeton University, where he took his electives in politics and plastics. He then began a career at the Ford Motor Company as an engineer.
Eventually dissatisfied with that job, he switched career paths at Ford, entering the company's sales force.
Iacocca gained national recognition in 1956 with his "56 for 56" campaign, offering $56 monthly payment loans for 1956 model year cars. he became the president of the Ford Motor Company, but he clashed with Henry Ford II and ultimately, in 1978, was fired by Ford.
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Career at Crysler
After being fired at Ford, Lee was aggressively courted by the Chrysler Corporation. Iacocca joined Chrysler and began rebuilding the entire company from the ground up, laying off many workers, selling the loss-making Chrysler Europe division to Peugeot, and bringing in many former associates from his former company. Iacocca brought to Chrysler the "Mini-Max" project, which, in 1983, bore fruit in the wildly successful Dodge Caravan and Plymouth Voyager.
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Characteristics of LEE IACOCCA
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Characteristics of Lee Iacocca
Vision Quick Decision Taker Sensitivity to Follower needs Innovations Motivators Personal Risk Unconventional Behavior
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Planner Communicator Analyzer
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Iacoccas speeches are often blunt and humorous; theyre always interesting and delivered in a unique style. Iacocca is a master at turning a phrase. He is one of the best communicator on the American scene. - Douglas Fraser, President Emeritus, United Auto Worker Professor of Labor Studies, Wayne State University.
Iacocca was honest, shared the power and glory of Chryslers success with the worker and went on to challenge the graduating seniors. He knew his audience and appealed to them. His integrity and values came across loud and clear. He gave inspiration to the graduating seniors to get out there and give it your best shot. - Stan Kahn
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LEE IACOCCA A Level 4 Leader
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Iacocca A Level 4 Leader
High Performance High Satisfaction
Highly Motivated Higher Course Evaluation
Effectiveness
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Iacoccas Career
Career at Ford
Ford Motor Company(1946) (engineer) moved to Sales & Marketing (his Career flourished) gained recognition
Responsibility: was primarily responsible for developing cost-cutting strategies and increasing profits During his tenure at Ford, Iacocca was perceived as a change agent and conformist, dexterous and on-the-feet-thinker
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Tenure at Chrysler
Encountered problems at Chrysler:
information dissemination, spirit of camaraderie and esprit de corps missing Poor quality products Financial control non-existent Finished goods inventory had risen to unprecedented level No real committee set up
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After becoming Chairman and CEO of Chrysler
Steps he took after becoming Chairman and CEO of Chrysler Revamped the management and set up the new team Recruited several key executives from Ford (were asked to look after the important functions) took harsh measures Initiated to improve relations with United Auto Workers union Reduced salary to $1 for 1 year
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Turning Around Chrysler
In 1984, Chrysler declared record profits of $2.4 bn During 1984-88 number of acquisitions were made Restructuring program in Chrysler In 1991, Iacocca initiated the construction of the Chrysler Technology Center (CTC)
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Lee Iacoccas Nine Cs of leadership
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Lee Iacoccas Nine Cs of leadership
Curiosity Creative Communicate Character Courage
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Conviction Charisma Competent Common sense
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Powers used by LEE IACOCCA
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Powers
Lee Iacocca used Positional power: Power derived from the opportunities inherent in a persons position in an organization. For example: laying off many workers, selling the loss-making Chrysler Europe division to Peugeot
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Personal power: Power derived from the interpersonal relationships between leaders and followers.
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Types of Position Power
Legitimate power
Stems from formal authority.
The power to discipline, punish and withhold rewards. Control over tangible benefits. Control over information.
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Coercive power
Reward power
Information power
Types of Personal Power
Expert power
The
power influence another person because of expert knowledge and competence. ability to influence others based on personal liking, charisma and reputation.
Referent power
The
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Leadership Model
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Situational Leadership Model
Examines the interaction between leadership behavior, the situation, and the followers readiness.
Readiness: the extent to which a subordinate possesses the ability and willingness to complete a specific task.
Task behavior: the extent to which a leader organizes and defines the role of followers by explaining what each person must do and when, where, and how tasks are to be accomplished.
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Styles of Situational Leadership Behavior
Telling style: the leader provides specific instructions and closely supervises performance.
Selling style: the leader explains decisions and provides opportunities for clarification. Participating style: the leader shares ideas and maintains twoway communication to encourage and support the skills subordinates have developed.
Delegating style: the leader provides subordinates with few task or relations behaviors.
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Qualification for Level 5 Leadership
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Qualification for Level 5 Leadership
Lee Iacocca do not Qualify for the Level Leadership because of the following reasons: Level 5 leaders channel their ego needs away from themselves and into the larger goal of building a great company. Level 5 leader have incredible ambitiousbut their ambition is first and foremost for the institution, not themselves.
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Personal Humility; Professional Will; Succession plan for the future.
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Prepared By:
Alankar Amit Jha Ankit Gupta Yatendra Mohan Singh Rohit Paul Shekhar Srivastava
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