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Anne Mulcahy grew up in a family with a tradition of engaging in fierce debates about current issues. “It was incredibly valuable to participate, express your opinion, and feel validated,” said Mulcahy, CEO of Xerox. “After 18 years of that, I felt comfortable in any debate.”
Mulcahy, who spoke to students September 13 at the Hyde Park Center at the third USA Today CEO forum , said that fostering open, passionate discussion is how she runs Xerox. “I love the opportunity to debate—to have a disagreement, be a good listener, and change your point of view. It lets people understand that they can help shape and decide. That participatory style is very important to what we were able to accomplish in a very difficult time at Xerox.”
Mulcahy, who is credited with resurrecting Xerox after the technology bust, began her career in sales but soon found management was her true calling. “I started to realize that it was a bigger accomplishment to get something done through someone else.”
She learned the ropes of upper management from those she supervised, Mulcahy said. “When you get a new job, the tendency is to feel, ‘I’ve got to know what I’m doing. I’ve got to give direction to others. I’m in this job because I’m better and smarter,’” she said. Instead, “you have to identify the people who really have knowledge, engage them, and learn from them. Don’t just pretend you know.”
When she first took the helm in 2000, Mulcahy asked for advice from many people, including Warren Buffet, who told her to place employees and customers above other constituencies, she said. Mulcahy spent 90 days visiting Xerox employees around the globe to hear them say what they thought had gone wrong with the company. Mulcahy also said she chose to protect research and development because employees were most concerned about Xerox’s customers staying for the long haul, she said.
Mulcahy and her staff conducted an “excruciating” assessment of Xerox, determining its technological development was “over-engaged” and not always connected to customers. “It was innovation for the sake of innovation,” she said. “The other thing is that we were everything to everybody. We had our fingers in everything.”
Xerox removed itself from many aspects of its business, outsourced much more, and worked with more development partners, Mulcahy said. “We became clearer about our choices and vigilant about competitiveness,” she said. “We started investing in our service capabilities. And we kept our research centers, which gives us the ability to drive future innovation.”
USA Today published a transcript of Anne Mulcahy's talk on September 21, 2006
—Phil Rockrohr
