Leadership at harley davidson draft 122010

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Leadership at harley davidson draft 122010

  1. 1. Leadership at Harley Davidson Brandon Furlow Ray Lee Gene Lewis Kyle Mohn MGT 247 – Ethical Leadership December 20, 2010
  2. 2. Table of Contents <ul><li>Harley Davidson Motorcycle Company </li></ul><ul><ul><li>History of Harley Davidson </li></ul></ul><ul><ul><li>Model the Way (Gene Lewis) </li></ul></ul><ul><ul><li>Inspire a Shared Vision (Ray Lee) </li></ul></ul><ul><ul><li>Challenge the Process (Brandon Furlow) </li></ul></ul><ul><ul><li>Enable Others to Act (Brandon Furlow) </li></ul></ul><ul><ul><li>Encourage the Heart (Kyle Mohn) </li></ul></ul><ul><ul><li>Conclusion </li></ul></ul>
  3. 3. History of Harley Davidson <ul><li>Started in 1901 with a drawing for an engine for a bicycle by William S Harley </li></ul><ul><li>In 1907, Harley-Davidson is incorporated </li></ul><ul><li>By 1920, Harley-Davidson had become the world’s largest motorcycle manufacturer </li></ul><ul><li>In 1969, Harley-Davidson was purchased by American Machinery and Foundry (AMF) </li></ul>
  4. 4. History of Harley Davidson <ul><li>In 1984, after years of declining customer base because of poor quality, 13 investors bought Harley-Davidson back from AMF and implemented a command and control leadership style. </li></ul><ul><li>In 1987, Harley-Davidson implemented an employee engaged leadership style under the guidance of Rich Teerlink. </li></ul><ul><li>By 2009, Harley-Davidson’s revenues are $4.781 billion </li></ul>
  5. 5. Model the Way <ul><li>Former CEO, Rich Teerlink, had new ideals for everyone to be involved at Harley Davidson </li></ul><ul><li>A complete re-organization of the company </li></ul><ul><li>Leadership involvement </li></ul><ul><li>Salaried and Union employee contribute knowledge for a better company </li></ul><ul><li>All parties must agree to a new commitment on new set of values and stay firm on ideals </li></ul>
  6. 6. Inspire a Shared Vision <ul><li>Company Vision </li></ul><ul><li>Diversity </li></ul><ul><li>Community </li></ul><ul><li>Customer </li></ul>
  7. 7. Challenge the Process <ul><li>Changed from top down leadership to self directed work teams </li></ul><ul><li>Not common in American companies, especially manufacturing/union environment </li></ul><ul><li>Shared decision making with employees, spread power across the organization </li></ul>
  8. 8. Enable Others to Act <ul><li>Shared decision making with employees, spread power across the organization </li></ul><ul><li>Put power in employees hands and removed road blocks to change </li></ul><ul><li>Increased employee satisfaction and buy in </li></ul><ul><li>Improved productivity and customer satisfaction </li></ul>
  9. 9. Encourage the Heart <ul><li>Harley Davidson employed a “ command and control” leadership style </li></ul><ul><li>Authoritarian style worked well in crisis times, leadership drove decisions </li></ul><ul><li>Rich Teelink, promoted to COO in 1987, wanted to initiate change, failed with gain sharing </li></ul><ul><li>Drove employee involved leadership style which encouraged outside the box thinking </li></ul><ul><li>Rewarded with annual H.O.G. celebrations </li></ul>
  10. 10. Conclusion <ul><li>Harley Davison was able to overcome adversity from AMF days </li></ul><ul><li>Change in leadership style and moving to self-directed teams created employee involvement </li></ul><ul><li>Worked through learning curve of leadership change (i.e. failure of gain sharing program) </li></ul><ul><li>Harley Davidson continues to remain profitable </li></ul><ul><li>Number one motorcycle manufacturing company in the United States </li></ul>
  11. 11. References <ul><li>All Business (2000, December 1). Duvall, High-performance partnering by self managed teams in manufacturing. Retrieved November 2, 2010 from </li></ul><ul><ul><li>http://www.allbusiness.com/management/1135404-1.html </li></ul></ul><ul><li>HarleyDavidson- http://www.harley d avidson.com/en_US/Content/Pages/home.html </li></ul><ul><li>The Leadership Journey at Harley Davidson, By Teelink, Richard, Corporate University Review, 10874755, Mar/Apr2001, Vol. 9, Issue 2 </li></ul><ul><li>http://web.ebscohost.com.libweb.ben.edu/ehost/detail?vid=11&hid=17&sid=967822f3-3ecf-4416-bc83-4b7caae3ac24%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bsh&AN=4407849 </li></ul><ul><li>Harley’s Leadership U-Turn. By: Teerlink, Rich, Harvard Business Review, 00178012, Jul/Aug2000, Vol.78, Issue 4 </li></ul><ul><li>http://web.ebscohost.com.libweb.ben.edu/ehost/detail?vid=3&hid=17&sid=18dae7e6-09d6-446c-a0a5-61883365fb47%40sessionmgr11&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bsh&AN=3261336 </li></ul><ul><li>Ethics and Leadership Under the Magnifying Glass. By: Clason, Patricia, March 1, 2001 </li></ul><ul><li>http://www.minnesotajobnetwork.com/articles/title/Ethics-and-Leadership-Under-the-Magnifying-Glass/682/6 </li></ul><ul><li>Harley Davidson main webpage. Retrieved Dec.11, 2010 </li></ul><ul><li>http://www.harleydavidson.com/en_US/Content/Pages/Company/company </li></ul><ul><li>Harley Davidson main webpage on Diversity. Retrieved Dec.11, 2010 </li></ul><ul><li>http://www.harleydavidson.com/wcm/Content/Pages/Diversity/diversity </li></ul><ul><li>Harley Davidson main webpage on Community. Retrieved Dec.11, 2010 </li></ul><ul><li>http://www.harleydavidson.com/en_US/Content/Pages/Foundation/foundation </li></ul><ul><li>Harley Davidson main webpage on Customer Commitment. Retrieved Dec.11, 2010 </li></ul><ul><li>http://www.harleydavidson.com/wcm/Content/Pages/HOG/mission </li></ul>

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