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Bad Leadership-Xerox

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  • March 2012
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Bad Leaders : Richard Thoman
: Paul Allaire

Company: Xerox Corp.

The fall of Xerox market share can be blamed on many factors; for starters it could have just been the economy. Another reason that could explain the fall of Xerox could be that Xerox did not fund its R&D programs well enough to secure their future in sales. One other reason for their fall could be that Xerox depended on current products to do well indefinitely. All these factors contributed to the fall of Xerox, however Xerox management also played a role in the loss of 38 billion dollars in shareholders wealth in two years according to a Bloomberg Businessweek article (Businessweek 1). For starters both of the leaders at Xerox were in fault, Paul A. Allaire who had started at Xerox in the mid 1960s eventually moving up in command to CEO, in 1991. Allaire failures as a leader was not leaving the company in 1999 when a new CEO was hired G. Richard Thoman. Allaire never lost power in the company, because he only changed his title to Chairman, running the board of directors, and according to a Bloomberg Businessweek article “Allaire never left, breaking one of the cardinal rules of succession” (Business Week 1). This was a failure by Allaire because he broke the rule of consistency that Cropanzano talks about in the article The Management of Organizational Justice. The normal practice would have been for Allaire to leave the company, and Thoman to take his position as CEO. By Allaire staying in the company, it was unfair to Thoman who never really had a chance to succeed or have complete power of Xerox. This lack of Organizational Justice also lead to employees being confused to who was really in charge, leaving breaks in the communication process. However the fault can’t completely fall just on Allaire shoulders, Thoman was hired because he had experience as a leader, and he should have made sure that Allaire was leaving before taking the position. In Gary Latham...

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