Sergio Marchionne Leadership Style
Sergio Marchionne is widely known for turning around the Fiat Group followed by Chrysler’s bankruptcy when Fiat earned stakes in the company. In less than two years, Marchionne was able to turn the company around earning profits and repaying all government loans 6 years in advance. Marchionne played an instrumental role in guiding the successful alliance of the Fiat Group and Chrysler. His management practices involve the following qualities and strategies.
15 Steps to Management
1. When the going gets tough, invest in people.
2. Perform constant analysis.
3. Keep an eye out for opportunities.
4. Improve productivity.
5. Success in general may be built on failure.
6. Create and maintain a competitive advantage.
7. Perform succession planning and reputation.
8. Focus on what matters and say no to the rest.
9. Successful innovation and success may be build on failure.
10. Earn respect.
11. Quality management.
12. Use numbers to season the points you serve, not as a main dish.
13. Create and nurture the correct culture.
14. Develop a clear vision and stick to it.
15. Be shrewd and keep the team on its toes.
Principles of Management Style
Sergio Marchionne is known for valuing the following items which served as the principles of his management style.
1. Merit over rank.
2. Excellent over mediocrity.
3. Competition over insularity.
4. Accountability over promises.
Marchionne is also known for managing his companies versus controlling them. Rather than dress formal or have a whole office floor to himself, he finds it practical to place his office on the Engineering floor and wear his signature Oxford button-down shirt, baggy black sweater, and black slacks.
Sergio Marchionne Leadership Quotes
“where everyone is expected to lead.”
“We flattened the organization out. We reached out and brought people on the management team who had been buried underneath the classical hierarchy of corporate America.”
“The hardest job is getting personalities to mesh. Some people become dysfunctional — their egos become blown out. It is like having an evil spirit in the house.”
“A lot of what I do is challenge assumptions — which often looks like you are asking stupid questions.”
“We attribute to this car a great part of our ambition and our efforts to win new customers.”
“International alliances reduce the cost of developing cars significantly.”
“This combination represents exceptional value to our shareholders. The new company will be in an improved position to serve its customers needs on a global basis.”
“From what I can tell, we’ll do significantly better than zero this year.”
“What I look for in people is the ability to use that space intelligently, not to abuse the freedom.”
“You’ve got more than money on the table… You’ve got me… You’ve got Fiat.”
Awards the Deming Cup 2011 for operational excellence by the W. Edwards Deming Center at the Columbia School of Business.