Anne Marie Mulcahy, nee Dolan, was born on October 21st, 1952, in Rockville Centre, New York.
A businesswoman and leader of excellent capability, Anne Mulcahy took the company’s reins as COO and President in 2000. She propelled the Xerox Corporation out of debt for the first time in years.
A leader who made history with her turnaround of the Xerox Corporation, Anne M Mulcahy, drove the company to overcome staggering obstacles like an SEC investigation, years of losses, and a stunning $18 billion in debt.
Under her supervision, the Xerox Corporation reached profitability for the first time in many years.
After she resigned from the position of CEO of the Xerox Corporation, Anne traveled all over the globe to serve as chair of the Save the Children Fund from 2009 to 2017.
Check out the next section if you want to know more about this transformational leader who saved one of the world’s most considerable Fortune 500 companies with her ‘Leading by Listening’ leadership style.
Understanding the Leadership Style of Anne M. Mulcahy
Returning a business that’s $18 billion in debt to profitability doesn’t happen overnight and certainly doesn’t take anything less than total and complete devotion.
Good business practices, optimized operations, and a motivated workforce help, but none of them were the significant changes the Xerox Corporation needed.
Instead, what got the job done was Anne Mulcahy’s definitive style of leadership that returned the Fortune 500 company to its roots: having a business model based around fulfilling the needs of their customers.
A self-made businesswoman that used nothing but her personal experience, new ideas, and pure dedication to achieve her goals, there are many things that the entrepreneurs of today could take away from her.
Motivating Employees to Give Their Best
The most noticeable thing about Anne’s leadership style is that during the early days of her reign as CEO, she logged more than 100,000 miles in flights to different locations and branches of the Xerox Corporation to listen to her subordinates.
While CEOs traveling certainly isn’t all that rare, taking the time to listen to the problems and opinions of her subordinates gave her credibility with them that no leader ever had before.
Your workforce is always your greatest asset, regardless of your company’s size. Making sure different sections of your enterprise are giving their best should always be your number one priority.
- Remember that no cog in the machine is too little. Take the time to listen to some of your subordinates to know about their worst problems.
- If you want to optimize the efficiency of your workforce, keep up morale by both making your employees feel important and addressing common issues.
- Lastly, maximum profit requires the best output from even the most minor branches. Apply innovative solutions to reduce costs while raising efficiency in less profitable locations.
Being Honest About the State of Affairs
Anne attributes a lot of her success to being honest with her subordinates.
Instead of trying to downplay the crisis the Xerox Corporation was in, Anne told her employees that it would take nothing short of everybody’s best to bring the company out of its debt.
During her meetings that were often described as ‘town-hall-style,’ she was honest with her subordinates about matters and gave them the option to either do their part or leave the company.
New entrepreneurs will profit from this advice massively since they need to be honest and up-front with dispirited employees to understand that they need to give their best.
- It’s essential to remember that your employees and subordinates aren’t dumb. Not talking about a crisis doesn’t mean that it isn’t present in everybody’s mind.
- Rather than downplaying the situation and encouraging people to return to everyday operations, encourage your workers and raise morale to ensure operations proceed at maximum efficiency.
- Most importantly, don’t leave anybody out, no matter how small they are. Being included makes people feel important, which in and of itself can hugely raise morale.
Keep Your Company’s Long-Term Future in Mind
Mulcahy took several steps to reduce the Xerox Corporation’s $18 billion debt where she could.
Still, something that later came to define how she turned the company around because she never reduced the Research and Development budget.
The reason was that she believed finding new and innovative services and products for their customers was the only hope for the corporation’s long-term future.
Ultimately, resisting pressure from executives to cut R&D budgets proved to be a good idea, as the Xerox Corporation bounced back with new services to help companies set up document flows.
- Rather than cutting costs wherever possible, it’s best always to consider what budget allocation changes could do to your company’s long-term future.
- Even if a particular product is popular now, it might very well be called outdated in the future. Investing in research is a good way of keeping up with technological advancements in your field.
- New entrepreneurs should follow Mulcahy’s example in always keeping R&D Departments well-supplied for developing new products.
Always Keep Up With the Times
In 2001, when Anne was made Chief Executive Officer of the Xerox Corporation, it was drowning in debt and fast losing customers because of old-fashioned products outmatched by newer models and competitive pricing from competitors.
In a bold move, Anne went on to stop the production of antiquated product lines that weren’t making much money.
Instead, she chose to reinvigorate the company with a new range of technologically relevant products from Xerox’s R&D Department, which she funneled more significant investments into.
A lesson that everybody can take away from this is the importance of keeping up with the times. Technologically relevant products are the only way to remain noticeable among the competition in today’s market.
- Rather than maintain a line or category of products that have become outdated, choose to stop production and instead invest the capital somewhere else.
- If you have extra capital from any source, it’s never a bad idea to invest it towards upgrading the technological specifications of your products.
- And while it may sound obvious at this point, keep up with the times. Offering outdated, antiquated products is the fast track to losing any chance at profitability.
Be Battle-Ready and Resilient
In an interview with The Franklin Institute, Anne Mulcahy says that one of the things that cemented her leadership style was the advice, ‘Be battle-ready and resilient. She says it’s important to remember that your company is worth fighting for, and this is something all entrepreneurs must be passionate about.
It means that an entrepreneur has to have a thick skin and the willingness to fight for his company the entire way.
There’s no better example of this than Anne Mulcahy herself. Even though she had the option of declaring bankruptcy and taking the easy way out, she never did.
Instead, this transformational leader used her experience in both sales, human resources, and leadership to create the most prominent corporate turnaround of the century. If you have a goal for your company, you always have to be ready to fight the entire way for it.
- You can’t let yourself get discouraged if your company isn’t showing profitability. Be resilient to dispiriting factors and work on fixing issues wherever possible.
- If you want to be a leader like Anne Mulcahy, you have to realize the importance of taking on whatever task can help your company increase its profits.
- Lastly, you need to take away from Anne Mulcahy’s story that you can never give up. What propels entrepreneurs is optimism and hope for their company, and you can never lose either!
What Are The Personality Traits of Anne M. Mulcahy?
At the turn of the century, the biggest corporate turnaround was pulled off by none other than Anne M. Mulcahy, who did it with nothing more than her experience, common sense, and a firm, no-nonsense leadership style.
Anne was taught from an early age that gender doesn’t have to impact your career or what you want to do. According to her, debates held in her household are how she learned to have her voice.
Mulcahy’s strengths lie in working with a team of subordinates, no matter how large, to achieve a common goal.
While a spirited worker herself, as she held most of the Xerox Corporation’s high-ranking Sales and Human Resources positions at some point or other, it’s no large stretch to see that her talents are wasted in a non-leadership role.
After spending eight years as the Xerox Corporation’s CEO, Anne retired. Since then, she has served on the Board of Directors for some of the largest companies worldwide.
She also served as the Chair of Save The Children Fund from 2009 to 2017, traveling around the globe and using the charity’s resources to improve the lives of children.
Whether you’re a new entrepreneur just starting on your business journey or an established name with a company worth a lot, there are always things you learn from Anne Mulcahy’s personality traits.
Consult the list below to know more about the inner workings of this fantastic leader:
She Leads by Listening
Authentic leaders that can bring about effective change on massive levels often have a critical strategy that they focus on for their company. For Anne, this was listening to her customers.
After Anne became CEO, people defined her leadership style as ‘leading by listening.’ She went through both customers and employees to find out what was wrong with Xerox.
She conducted surveys, took opinions from employees, applied her vision to see what customers lacked at the turn of the century, and used the limited resources of a failing company to capitalize on needs like innovative solutions to document flows in-house.
She Expounds on the Importance of Inspiring Through Example
Even if you discount all that Anne Mulcahy brought to the table for the Xerox Corporation, her leadership through example stands out the most.
Anne didn’t ask her employees to put in a level of effort that she wasn’t showing.
She even traveled to low-profit and remote locations to find out what issues they faced and how she could raise morale by providing immediate solutions to them.
Mulcahy knew that the need of the hour was mixing her brand and credibility with Xerox’s image of a dying company, and that’s precisely how she propelled thousands of employees worldwide to come together and save Xerox through a combined effort.
She Advises to Keep Relevant With New Technology
Today, CEOs and entrepreneurs responsible for the well-being of a company must see the glaring importance of embracing new technology if they want to remain relevant in the market.
Anne’s desire to bring Xerox up to speed with the times led her to make some bold decisions during the beginning of her reign as CEO that weren’t always popular with shareholders.
She stopped the production of outdated products but refused to reduce the budget for research and development.
As later seen, these were precisely the bold moves the Xerox Corporation needed. Mulcahy revolutionized the company’s product lineup with a range of consultancy services and presented innovative solutions for companies to improve document flow.
She Prioritizes Adaptability
Early in her reign as CEO, Anne Mulcahy was forced to realize that the Xerox Corporation would have to let go of outdated ideologies and products if it wanted to survive.
One of the first steps Anne took to reduce Xerox’s massive debt of $18 billion was to have an immediate re-evaluation of the company’s assets, where she sold off non-core assets worth more than $2 billion.
This simple prioritization of the Xerox Corporation’s long-term future displays this fantastic leader’s adaptability.
The range of products and services that brought Xerox out of debt was also intelligent, innovative document organization and management strategies, and adapted to the latest technology to compete in a rapidly evolving market.
She Values Her Subordinates
Perhaps the most striking thing about Anne Mulcahy is that to bring Xerox out of debt, she utilized a resource that many leaders forget to prioritize: their workforce.
In several interviews and talks with reporters since she became CEO of Xerox (and after she stepped down as well), Anne stressed the importance of having the complete support of the Xerox employees, who followed her vision for the company’s future with trust and dedication.
According to Mulcahy herself, a significant factor behind the company’s revival was her reinvigoration of the company’s dispirited workforce.
Her reorganization of the company’s priorities allowed her to put valuable talent where it was needed and increase the efficiency of the corporation’s operations.
She Dedicates Herself Completely
Whether you read an article about Anne Mulcahy or ask her former co-workers and subordinates at Xerox, it’s commonly said that she always fully dedicated herself to her goals.
Even from her school days, Anne was a spirited worker who stopped at nothing to get the job done.
In 2000, this firm commitment to whatever she was working on made her the ideal choice for the Xerox Corporation’s president. This Fortune 500 company was rapidly sinking under its weight.
She Has A Thick Skin
Mulcahy was first considered for CEO almost two years before she was handed the job but was passed over for somebody outside the company.
This would generally be offensive to anybody, as she had already performed several miracles for the dying Xerox Corporation. Still, Mulcahy didn’t let it bother her and instead continued to give Xerox her complete dedication.
Declaring bankruptcy would be the simplest and easiest way out, but Anne never even considered the option.
Instead, her thick skin towards disparaging comments and discouraging factors allowed her to implement change in Xerox on a global scale that ultimately returned it to profitability.
She Encourages Spending Your Time Actively
For Mulcahy, always making good use of her time has remained a priority throughout her business life.
Being active might sound like a relatively essential part of anybody’s personality.
Still, for Anne, it was one of the significant facts that helped her achieve success in every single one of her business leadership positions.
Even after Anne retired from the Xerox Corporation, she focused on keeping her business life active.
Anne holds important positions on the Board of Directors for several high-profile companies.
She was the lead director for Johnson and Johnson and was an Executive in Residence for Harvard University!
She Supports Gender Equality
In various interviews and conversations, Anne has maintained that the foundation for her leadership style comes from her childhood.
Her parents were modern intellectuals who raised Anne and her four brothers with intellectual exercises and daily competitive debates.
From an early age, Anne was taught the value of equality and was expected to have a career like her brothers.
A habit of reading up on the facts of a situation, performing extensive research into controversial topics, and preparing an argument is what allowed Mulcahy to establish herself as a ‘frank, no-nonsense leader’ who inspired her employees by facing Xerox’s crisis head-on.
She Cares About Giving Back to the World
Setting aside her business personality for a moment, Anne Mulcahy is also a warm, kindhearted soul who cares about giving back to the world she lives in.
The best example of this is her time spent leading the Save the Children Fund, a charity that promotes better healthcare and welfare for children around the globe.
Anne served as the Chair for Save the Children from 2009 to 2017, and over almost a decade flew worldwide to promote the charity’s mission to bring medicines, food, and even education to unprivileged children.
What Characters Made Anne M. Mulcahy’s Xerox Successful?
Since Anne Mulcahy stepped down from being the CEO of Xerox, analysts have spent years trying to figure out the factors that played significant parts in her reinvigoration of Xerox.
Ultimately, a single thing helped the company get out of debt and back to profitability.
That was Mulcahy herself, whose fresh ideas and experience managing a sales department helped Xerox return to its roots of providing technologically relevant customer solutions.
As for Mulcahy herself, her success at various leadership positions and investment opportunities has seen her make moderate profits off them. Today, Mulcahy holds a net worth of at least $3 million.
You might be asking here, what made her so suited to being the woman entrusted with pulling off the world’s most significant corporate turnaround?
The thing that made Anne Mulcahy the best choice for CEO of the failing Xerox Corporation in 2001 are:
- A background in extensive research allowed her to understand the company’s failures.
- A leadership style based on promoting communication between all levels of the company.
- Anne’s unique ability to see things in an objective light, allowing her to raise immediate funding to reduce Xerox’s debt.
- Her experience in all levels of Xerox’s Sales Department over a career of more than 20 years.
- And finally, the fact that Anne Mulcahy is a natural-born leader able to inspire the people around her with nothing but bare facts.
Taking A No-Nonsense Approach to Underperforming Employees
In one of the earliest days of Anne’s appointment as CEO, the new leader held an extensive meeting with core Xerox employees.
Addressing both well-performing workers and underperforming, discouraged employees, Mulcahy told them that unless Xerox came together, everybody at the meeting, including her, would soon be out of a job.
Anne Mulcahy’s no-nonsense approach to her employees is not only definitive but a quality that new entrepreneurs should try to cultivate.
Having A Strong Foundation for Damage Control
If there’s anything people can take away from Anne Mulcahy’s turnaround of Xerox, it’s a lesson in performing damage control.
Holding back more damage to your company is essential, but you also need a solid foundation to ask your creditors to hold back.
Under Anne Mulcahy, this foundation came from non-core assets and liquidation issues that allowed her to raise more than $2 billion towards Xerox’s debt of $18 billion.
As she put it, when your company is in dire straits, you need to rearrange your priorities drastically.
Sectors that are kept up more for tradition than profitability need to be downsized. More capital needs to be invested towards Research and Development to guarantee a flow of innovative products and services.
Playing to Your Strengths
When Anne was appointed to be the Chief Executive Officer, the biggest problem she faced was a complete lack of experience in managing the global operations of such a large company.
However, this didn’t stop her in any way. Mulcahy knew that her strengths were inspiring the everyday employee with her honest and truthful speeches.
She did that to the best of her ability, holding extensive meetings with hundreds of employees where she laid bare the facts of Xerox’s crisis.
To help her make strategic decisions, Anne relied on the assistance of a team assembled from the brightest minds in the Xerox Corporation.
With both their ideas and her own background in the Sales Department, she turned Xerox around with a range of modern, innovative document management solutions.
Outlining the Importance of Communication
Anne Mulcahy has often said that her leading role in the company during her early days as CEO was ‘Chief Communication Officer.’ While it was said jokingly, it couldn’t be any more accurate.
Mulcahy spent months of her first year as CEO traveling to far-flung branches of the Xerox Corporation to do her research on exactly why the company wasn’t making money.
While the fundamental factors behind the company’s continued years of losses were several in number, Anne says she could only address them because she outlined the importance of communication between employees.
New entrepreneurs can take this as an example and do the same thing in their own companies to maintain the transparency that allows them to get an overview of operations in a single look.
Establishing Clear Goals For the Short-Term
Having clear goals is a priority for any organization that wants to make the most profits from its operations. It’s essential to keep your company’s long-term vision in mind, but what makes Anne Mulcahy so unique is her focus on maintaining immediate, future-proof profitability.
Please don’t confuse this with the mentality of new entrepreneurs, who often prioritize making a quick buck over the long-term security of their operations.
Instead, read the following list to know more about Anne Mulcahy’s short-term operational goals:
- Liquidating Non-Core Assets: A big step in her plan to stem Xerox’s debt, Anne Mulcahy chose to liquidate and sell off non-core Xerox Corporation assets.
- Paying Back Xerox’s Debt: With funding raised from liquidating non-core assets, Anne immediately paid back more than $2 billion of Xerox’s $18 billion debt.
- Reducing Costs Wherever Possible: Optimizing operations would mean a massive change in Xerox’s business model. Following several executive decisions, Anne had cut operational costs by 50%.
- Lastly, Keeping the Corporation’s Long Term Future in Mind: Most of Anne Mulcahy’s decisions were indeed made to keep the company alive for the short term. It’s also just as accurate that she never forgot the company’s long-term health, as she never cut a single dollar from the corporation’s R&D Department.
Anne Mulcahy will forever be an exemplary leader in the business world, as she rose to hold the reins of one of the world’s most enormous Fortune 500 companies from a simple sales position.
Even with virtually no experience in that level of management, she pulled off the most prominent corporate miracle of the era by not only bringing it out of debt but propelling it into popularity again!