LEE IACOCCA &CHANGE MANAGEMENT 

BY - FAIYAZ ABBAS HUSSAINI(11BM60104)RAHUL RAVI (11BM60078)MRINAL VARHSNEY (11BM60016)PRATIUSH TYAGI(11BM60002)YASH MEHTA(11BM60116)ROHAN PATTNAIK (11BM60108)

LEE IACOCCA

   Lido Anthony "Lee" Iacocca is anAmerican businessman most commonly knownfor his revival of the Chrysler Corporation in the 1980s, serving as President and CEO from 1978 and additionally as chairman from 1979, until his retirement at theend of 1992.

 Problems at Chrysler Corporation

• Accumulated losses of $ 1.2 billion• Government bailout package required to save the company from

bankruptcy• No coordination among the teams• Poor product quality• Losing consumer loyalty• Low morale among the employees and industrial

spying

 STRATEGIES FOR COMMUNICATING CHANGE

4 Key change enablers:  • Established vehicle platform teams.• Constructed a new technical center.• Adopted a new corporate culture and organization.• Installed a single company wide computer system 

      based on CAD-CAM software.

SKILLS FOR COMMUNICATING CHANGE

• Curiosity: He was a able listener and used to discuss problem through dialogue and had a habit of face to face communication with the team members and customer - Underscore and Explore.

• Creative:  He used to challenge conventional approach and went resource reduction and downsizing and convinced his team about staying ahead of change curve.      

                      •  Charismatic: He used his marketing skills by featuring

       in the TV commercials and hence became the face of        the company. He also started the concept of Open       letter to American people in order to remove the        prevailing myths and to build public faith in the        company - Contingency Approach                       

LEADERSHIP STYLE    • Bold Decision maker and risk taking abilities. • Visionary who could see far beyond the day to day

activities of business.• Was not afraid of taking unpopular decision to solve major

problem.• Ability to adjust any kind of situation very quickly.• He provided the leadership from brink of bankruptcy  to

profitability.• Revamped internal politics and system,  change

management structure, trimmed  ten of thousands of employees and 

      translated  the loser stigma of a government bailout into       positive cultural shift. • Moved the company forward based on personal 

      charisma and ego. Starred in over 80 television       commercials for the company.

CONSOLIDATING CHANGE

• Redesigned Roles - Brought about changes in the organizational structure.

• Redesigned Reward System - Medical Benefits, "30 and out" benefits that allow workers with 30 years of service to retire with full benefits, unlimited cost of living allowance, etc.

References : wikipedia.com,Lee Iacocca - An Autobiography by William Novak