LEADERSHIP

EFFECTIVENESS &
ITS IMPACT ON
TURNAROUND
STRATEGY

PRESENTED BY:
SIDDHANT SINGH(55)
SIDHARTH KOTWAL(56)
STUTI GUPTA(57)
 INTRODUCTION

LEADERSHIP, ITS TYPES

EFFECTIVE LEADERSHIP THEORIES

TABLE OF TURNAROUND STRATEGY

CONTENT
REAL LIFE CASE STUDY

CONCLUSION

REFERENCE
 INTRODUCTION
∙ L E A D E R S H I P I S T H E A R T O F M O T I VAT I N G P E O P L E T O W O R K A N D
F O C U S T O WA R D S A P L A N N E D O B J E C T I V E .
∙ E F F E C T I V E L E A D E R S H I P I N V O LV E S I N S P I R I N G A N D G U I D I N G A T E A M
TO ACHIEVE COMMON GOALS, FOSTERING A POSITIVE WORK
E N V I R O N M E N T, A N D A D A P T I N G S T R AT E G I E S T O M E E T C H A L L E N G E S .
∙ I T R E Q U I R E S G O O D C O M M U N I C AT I O N , E M PAT H Y, D E C I S I O N -
M A K I N G , A N D T H E A B I L I T Y T O M O T I VAT E A N D D E V E L O P O T H E R S .
CONTINUOUS SELF-IMPROVEMENT AND A COMMITMENT TO ETHICAL
PRACTICES ALSO CONTRIBUTE TO LEADERSHIP EFFECTIVENESS.
 One who inspires and motivates
others
WHO IS A
LEADER?
Has a vision and directs the
path to achieve it

Ensures the development of

their team members
 Ability to guide,influence and
inspire others

What is
Leadership Improves team communication
and collaboration
?

Strengthens the effectiveness of

the team
DIFFERENT TYPES OF
LEADERSHIP STYLES
 A democratic leader makes decisions based on their team’s
opinion and feedback.

Everyone gets involved in the decision making process.

1. Democratic Transparent conversations

Leadership
Everyone’s opinion counts

Values collaboration and teamwork

Encourages discussions.
Example of democratic leaders :Barack Obama- former
president of the US and Tim Cook -CEO of APPLE
 2. This is precisely the opposite of

Autocratic democratic leadership,the leader has the

absolute power to take decisions without
considering the opinions of others.
Leadershi
p
Autocratic leaders tend to use fear and
control to gain total power over their
people.

Instead, leaders expect others to adhere to

their decisions, which is not sustainable
in the long run.
Example of autocratic leaders: Adolf
Hitler of the German Empire, Elon Musk
of Tesla and SpaceX
 This leadership style is the least
intrusive and ensures that the decision-
making authority lies with the team
members

3. Laissez- This leadership style empowers team

faire members and holds them accountable
for their work
Leadership
This motivates many team members to put
their best foot forward, improving the
organization’s efficiency and productivity.
Steve jobs: The late co-founder of Apple is
said to have been a laissez-faire leader who
allowed employees to make their own
decisions.
 4. Strategic Leadership

Strategic leadership is when Strategic leaders strive to get the best

leaders use their skills and out of people or situations.
capabilities to help team Some key traits include:
members and organization to vision,openness,focus,courage and
achieve their long-term goals prudence
5. Transformational and Transactional
Leadership
• Transformational leadership is a
management philosophy that
∙ Transactional leadership is a
encourages employees to innovate
leadership style that focuses on
and develop new ways to grow order, structure, and goal-oriented
and improve a company’s future planning.
success.
∙ Leaders link goals to rewards,
• Leaders use charisma and clarify expectations, provide
enthusiasm for motivation. resources, and set goals.
• Jeff Bezos is seen by many
as a great transformational
∙ Sports teams often use a form of
transactional leadership to
leader. His leadership style
Involves always pushing convince team members to do
employees and staff to think training, in order to hit a personal
about new products and reward.
possibilities.
 6. Coach- This leadership style focuses on
identifying and nurturing a team
Style member’s strengths and weaknesses

Leadership
A coaching leader develops strategies
that emphasise team members’ success

Though this is similar to strategic and

democratic leadership styles, the focus
here is more on improving the
individual skills and performance.
 7. Bureaucratic Leadership
A system of management that
follows a hierarchy where official
duties are fixed. Employees in this
form of leadership are expected to
follow specific rules and authority
created by their superiors.
The best example of a
bureaucratic leadership style can
be found in a military. The chain
of command is strictly adhered to,
with very little, if any, formal
channel of reciprocal feedback.
IMPACT OF LEADERSHIP ON
TURNAROUND STRATEGY

1. Transformational Leadership
Impact on Turnaround: In a turnaround
scenario, transformational leaders can
inspire employees to embrace change,
fostering a positive and innovative
culture. Amazon’s CEO has made the
company world’s largest e-commerce
platform.
2.Transactional Leadership
Impact on Turnaround: Transactional leaders can bring stability
during a turnaround by implementing clear structures, setting
expectations, and addressing deviations promptly.
For example,Atheletic team coaches motivate their team players
by promoting rewards after winning the game.

TURNAROUND
STRATEGY
A turnaround strategy is a set of
measures implemented by an
organization to reverse a decline in
performance, overcome financial
distress and restore business to
profitability.
Key components of a turnaround strategy:
Diagnosis and Assessment
• Identify Root Causes: Conduct a thorough analysis to
identify the underlying issues causing the downturn
Leadership Change
• Appointing a Turnaround Leader: In some cases, a change
in leadership is necessary to bring in fresh perspectives and
expertise
Stakeholder Communication
• Transparent Communication: Open and honest
communication with stakeholders, including employees,
customers, suppliers, and investors, is crucial
Financial Restructuring
• Cost Reduction: Implement cost-cutting measures to
improve financial stability
• Debt Restructuring: Renegotiate debt terms and explore
options for restructuring to alleviate financial pressure
Customer Focus
Customer Relationship
Management: Strengthen
relationships with existing
customers and explore ways
to attract new ones
Quality Improvement:
Enhance the quality of
products or services to meet
or exceed customer
expectations
Continuous Monitoring Legal and Regulatory
and Adaptation Compliance
Key Performance Compliance Review: Ensure
Indicators : Establish and that the organization
monitor KPIs to track complies with legal and
progress and adjust regulatory requirements
strategies as needed Ethical Considerations:
Flexibility: Remain Uphold ethical standards in
adaptable to changing all aspects of the turnaround
market conditions and be strategy
ready to adjust the
turnaround strategy as
necessary
 TURNAROUND STRATEGY OF
ALLAN MULALLY - EX CEO FORD
 A great example of an iconic organization that
was once broken and staged a successful
turnaround is Ford Motor Company under the
leadership of then-CEO Alan Mulally

When Mulally took over as Ford’s CEO in

September 2006, the company was clearly
broken: Its stock price had fallen precipitously
, its debt was at “junk” status, and 2006 would
go down as the worst year in its history with a
$12.7 billion loss

Alan Mulally's leadership at Ford is often

cited as a successful example of turnaround
management

He applied transformational,situational,adaptive and strategic

leadership strategies to re-establish the company’s status.
KEY STRATEGIES IMPLEMENTED BY ALAN MULALLY

ONE FORD PLAN

COST CUTTING AND WORKFORCE REDUCTION
QUALITY IMPROVEMENT
GLOBALISATION AND MARKET ALIGNMENT
STRATEGIC ALLIANCES AND PARTNERSHIPS
DEBT RESTRUCTURING
 In conclusion, the intricate relationship
between effective leadership and successful
turnaround strategies is evident in the
dynamic and challenging landscape of the
business environment

Leadership styles play a pivotal role in

shaping organizational dynamics,
CONCLUSION influencing team engagement,
communication, collaboration, and overall
effectiveness

Transformational leadership, transactional

leadership, and situational leadership offer
unique perspectives on how leaders can
inspire, motivate, and adapt to guide teams
through crises, with each theory catering to
specific organizational needs
 REFERENCES

https://qz.com/431078/how-ford-ceo-
alan-mullaly-turned-a-broken- https://hbr.org/2003/06/leadership-
company-into-the-industrys- and-the-psychology-of-turnarounds
comeback-kid
THANK YOU