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assured of both the diagnosis of the from the senior leadership”(p24). tasks undertaken. A fitting reply
problems and the required funds, The motto was to remain absolutely was possible only when the actual
Marchionne got down to his task, focussed on the objective, but not to results of the organized efforts
cleaning the table of old, traditional, define methods of execution, which attested that the challenge to be
hierarchical approaches to could vary from one to the other; met was successfully done. This
problems, dissecting them to every the motto was to obtain results from was demonstrated by the fact that
detail, delegating tasks and keeping the actions already taken and those ‘the amount the US Treasury lent
a sharp vigil on how things were programmed for. to Chrysler amounting to $ 5.1
going and at what speed, as also with billion after Marchionne took over
what results. The vigil introduced Effective Buck up – A Prime Need the reins in June 2009 was repaid
touched every detail concerning The leeway given was not without in full, with interest, six years ahead
both inputs of resources and the checks and balances as the captain of schedule! Fiat also paid the
outcome from efforts. He flattened of the team pursuing a mission Treasury $500 million for its 6%
the structure of organization kept a constant watch on how Chrysler stake. Thus, the combined
with a complete task-orientation things were progressing. He kept strength of the two Italo-American
and watching every detail. In this reminding the authorities that the corporations demonstrated that
process of going into every detail depth and breadth of the problems given the will, stamina, competence,
of the operations, services of many of a crisis of worldwide downturn foresight, imagination and external
of the upper hands in the hierarchy could not be solved with traditional moral support, the adversities of
were dispensed with; in their place, approaches. The mutuality of the whatsoever dimensions can be
several of the lower strata of people combined experiences of both successfully combated. However,
with imagination, technical ability Fiat and Chrysler and expert such leaders, provision of necessary
and acumen with a love for speed computer assistance of Fiat helped resources and uninterrupted
and innovation were brought in to in bringing to line and effectively progress are not available just for
ensure both quality and quantity sorting out many of the problems the asking, Much of the above
of work done. The results of all this faced by both; while in Fiat the discussion relates to dissection
started showing up by and by, in revamping problems were usual, of a worldwide phenomenon of
fact much quicker than expected. in Chrysler, thanks to the several economic downturn, mainly in the
One by one, all the varieties vehicles billion dollars of Government countries of the north; those of the
turned out by both Chrysler and assistance, the financial problems south were relatively unaffected,
Fiat spurred on the road on both were not as biting. This provided mainly as result of economic
sides of the Atlantic almost as some breathing time, fully utilized planning, albeit being on the last lap.
a challenge to the downtrend, by the renovators. By the time both However, with the economy thrown
while at the same time ensuring of these corporations found their open and the licence raj withdrawn,
that the vehicles turned out did feet, several other corporations, protective lines were not as visible,
have markets the world over. The like General Motors, were also as much as the intervention of the
captain’s stance was underlined recovering from the blow, though at government dishing out funds for
by his ability to drill down to the a lower rate, following the adage of averting an onrushing catastrophe,
smallest detail of manufacturing one begetting another. The results as the Obama administration did,
or even advertising. In his own of all these efforts were writ large in despite many a doubting Thomas
words, Marchionne emphasized, both Chrysler and Fiat. Leadership, lurking all around. Marchionne had
“We flattened the organization in the ultimate analysis, is not a to make his march through different
out. We reached out and brought quantitative thing. The trust put in kinds of rough weather calling for
people on the management team the leader by the workers has to be Herculean efforts for meeting the
who had been buried underneath attested by results. Leadership has challenges.
the classical hierarchy of corporate to be manifest in terms of the results
America.” “They were given an as Chrysler and Fiat demonstrated, The Indian Phenomenon
opportunity to play with their own traversing an unfriendly path with Under the bold experiment
ways. These are the people who numerous doubting Thomases of planning in a democracy, the
had been two or three layers down underlining the impossibility of the Central and state governments

www.icmai.in May 2017 l The Management Accountant 57