Leadership in Organizational Settings

It is critical to address the importance of leadership in organizational settings. Robert J. Shiver, the CEO of Airway Holdings, Inc. Stated that “the ability to motivate and guide people toward a goal is the essence of leadership. ” The text defines leadership as the “ability to influence, motivate, and enable others to contribute to the effectiveness and success of the organizations of which they are members”. (Grittier & Kicking, 2004) Effective leader’s posses the traits and skills that can transform organizations through their vision, communication, and ability to build commitment.

The seven competencies of effective leaders are emotional intelligence, integrity, drive, leadership motivation, self- confidence, intelligence, and knowledge of the business. We will see how great leadership can propel an organization to levels of high performance. (Grittier & Kicking, 2004). Ionians Motor Company Ionians Motor Company was Japan’s second largest automaker after Toyota but declining sales due to an unpopular product line caused the company to reach the brink of bankruptcy in 1998.

Due to financial problems throughout the sass, Ionians formed an alliance with the French auto manufacturer Renault and named Carols Shown, the first non-Japanese person to run a Japanese car company as its leader. Shown understood that his job was not only to stop the financial bleeding but also to bring NASA back to profitability. Ionians CEO Carols Shown developed a strategy to reposition the organization in the global market. The objective was clear, to increase annual growth and so a five year plan called Ionians 180 was designed.

Shown understood that the key to success would rely heavily on the launch of a large number of new products quickly. The organization had to create innovative products that would help create a strong brand image. Globally Ionians launched 28 new products in four years changing its product from drab to daring. Ionians experienced a quick turnaround and return to profitability based on the strength of cost cutting and upgrading its product line.

To cut cost the revitalization the company also moved more vehicle production to the United States, which was part of the company’s strategy to build vehicles in the market in which they are sold, cutting down on transportation costs as well as the cost of currency fluctuations. Under the leadership of Carols Shown Ionians became the most remarkable rags to riches stories in automotive history and the most spectacular corporate turnaround in history recovering from near bankruptcy to record profits in a matter of only five years.

After successfully completing Ionians 180, Ionians sales totaled 3. 67 million vehicles in 2002, interest bearing debt was wiped out and operating profits margins rose to 8% boasting the world’s highest operating profits of any automaker. In 2005 Ionians reached its goal of selling 1 million additional units lovably. The success of Ionians can only be attributed to the organization’s leader Carols Shown and his vision, strategy, and commitment which created unbelievable results.

Ecology Coating Rich Stromberg is the CEO of Ecology Coatings, a annotate company based in Akron, Ohio. This company found success from the launch of a single product. Ecology Coatings created a waterproof paper product that could be written on with a pencil or pen like normal paper. This paper is mold resistant and can be immersed in water. The product got the attention of the shipping and instruction industry. Ecology Coatings then devised an industrial coating that functions like paint but dries far more rapidly, increasing production time and reducing hazardous fumes.

The effective leadership of Stromberg allowed Ecology Coating to ink a licensing deal with DuPont, which will sell the company’s annotate coating technology to the auto industry. The problem however, is that it will likely be more than a year before Ecology Coatings sees any substantial revenue from the DuPont deal. Stromberg understood that the decision to go public was one out of necessity. Annotate companies need large capital budgets to build factories and laboratories. The payoff can take several years rather than just a few months.

The management teams of Ecology Coatings needed raise some venture capital to ramp up marketing efforts in order to go to the next level. Capital was needed to scale up Ecology’s manufacturing and for new development, advertisement, and marketing so that the organization could remain successful. Ecology Coatings is now traded on the ETC Bulletin Board Exchange under the ticker symbol “EEOC”. Today, Ecology Coatings’ reputation s a leader in coatings research has led many industry leaders to use Ecology as a testing ground for their products.