LEADERSHIP CASE PROBLEM A
Mike Todman Makes a Splash at Whirlpool
By the time the financial crisis hit, the brutal economy
forced its executive leadership team to stay
focused on a recently drafted strategic plan to turn
its business around. Michael A. Todman, president
of Whirlpool International, recalled the overarching
goal: “Let’s control the things we can. We had already
changed our business model, and we had to
make some really tough decisions.”
Senior management concentrated on three priorities:
aligning costs to meet the demands of the turbulent
business climate; managing cash for greater
liquidity; and maximizing market share by targeting
consumers in a more effective, efficient manner. As
a result, the company abandoned brand advertising,
shifting to promotional and point-of-sales methods.
“We spent our time talking directly to them so we
used more digital media,” Todman said.
To underscore the urgency, management also
ramped up internal communications. It was critical
to make and implement decisions at a faster pace
and, at the same time, secure employee buy-in. So
board members met once a month instead of six
times a year while managers spent more time meeting
with the rank and file. “Philosophically, our approach
is to be straight, be honest, tell people exactly
what is going on,” said Todman.
During the challenging financial period, Todman
focused on the North American market. He also
completed the integration of Maytag into the
Whirlpool product line. Todman focused on revamping
the product line by closing costly plants
and educating the entire staff on both companies
before introducing the new models. Todman oversees
brands in Europe, Latin America, and Asia
with duties that include management of global
information systems and global strategic initiatives,
including efficiency and innovation.
Jeff Fettig, Whirlpool Corp. CEDO and chairman,
said, “Mike has a number of strengths. First, he’s got
great expertise in being a global leader. He knows
how to operate effectively with different cultures
and different people. He also knows our operations
very well—our strengths and weaknesses, what we
can do and what we can’t do—so he’s instrumental
in helping us to set the right priorities and then
running disciplined operations to help us deliver
our expected results.”
Born and raised in St. Thomas, U.S. Virgin Islands,
Todman has been described as a robust man
with a gentle demeanor that’s not easily ruffled. His
colleagues describe him as consistent, engaging, and
extremely personable. A Whirlpool executive said
about Todman: “He’s able to analyze really complex
business problems and make the right decisions so
that the company can make money.”
Communication is an integral part of Todman’s
management style: dissecting trend information,
disseminating company goals and objectives, and
pushing employees to think more broadly, more
creatively, but as an interconnected unit that functions
across the globe. It’s a twenty-four-hour job,
he ...
LEADERSHIP CASE PROBLEM AMike Todman Makes a Splash at Whirlpool.docx
1. LEADERSHIP CASE PROBLEM A
Mike Todman Makes a Splash at Whirlpool
By the time the financial crisis hit, the brutal economy
forced its executive leadership team to stay
focused on a recently drafted strategic plan to turn
its business around. Michael A. Todman, president
of Whirlpool International, recalled the overarching
goal: “Let’s control the things we can. We had already
changed our business model, and we had to
make some really tough decisions.”
Senior management concentrated on three priorities:
aligning costs to meet the demands of the turbulent
business climate; managing cash for greater
liquidity; and maximizing market share by targeting
consumers in a more effective, efficient manner. As
a result, the company abandoned brand advertising,
shifting to promotional and point-of-sales methods.
“We spent our time talking directly to them so we
used more digital media,” Todman said.
To underscore the urgency, management also
ramped up internal communications. It was critical
to make and implement decisions at a faster pace
and, at the same time, secure employee buy-in. So
board members met once a month instead of six
times a year while managers spent more time meeting
with the rank and file. “Philosophically, our approach
is to be straight, be honest, tell people exactly
what is going on,” said Todman.
During the challenging financial period, Todman
focused on the North American market. He also
completed the integration of Maytag into the
Whirlpool product line. Todman focused on revamping
the product line by closing costly plants
and educating the entire staff on both companies
2. before introducing the new models. Todman oversees
brands in Europe, Latin America, and Asia
with duties that include management of global
information systems and global strategic initiatives,
including efficiency and innovation.
Jeff Fettig, Whirlpool Corp. CEDO and chairman,
said, “Mike has a number of strengths. First, he’s got
great expertise in being a global leader. He knows
how to operate effectively with different cultures
and different people. He also knows our operations
very well—our strengths and weaknesses, what we
can do and what we can’t do—so he’s instrumental
in helping us to set the right priorities and then
running disciplined operations to help us deliver
our expected results.”
Born and raised in St. Thomas, U.S. Virgin Islands,
Todman has been described as a robust man
with a gentle demeanor that’s not easily ruffled. His
colleagues describe him as consistent, engaging, and
extremely personable. A Whirlpool executive said
about Todman: “He’s able to analyze really complex
business problems and make the right decisions so
that the company can make money.”
Communication is an integral part of Todman’s
management style: dissecting trend information,
disseminating company goals and objectives, and
pushing employees to think more broadly, more
creatively, but as an interconnected unit that functions
across the globe. It’s a twenty-four-hour job,
he says of managing the various time zones
through phone calls and video conferencing. Todman
spends two weeks out of every month in the
marketplace visiting the team as well as customers.
“I understand how consumers are living and that
keeps you on the pulse.”
Todman has a bachelor’s degree in business
3. administration from Georgetown University. He
joined Whirlpool in 1993 in London as director of
finance, eventually running the customer service
business in Europe. For his leadership role in helping
bolster Whirlpool’s financial performance
through his strategic vision in accessing global
markets and ability to effectively drive innovation,
Todman was selected as the 2010 Black Enterprise
Corporate Executive of the Year.
Questions
1.In what way is Michael A. Todman exercising leadership?
2. Identify at least leadership roles Todman emphasizes as
president of Whirlpool, International.
3. To what extent does it appear that Todman is showing a good
balance between strategic thinking and focusing on people?
4. What advice might you offer Todman to be even more
successful as the head of Whirlpool?
LEADERSHIP
CASE
PROBLEM A
Mike Todman Makes a Splash at Whirlpool
By the time the financial crisis hit, the brutal economy
forced its executive leadership team to stay
focused on a recently drafted strategic plan to turn
its business around. Michael A. Todman, president
of Whirlpool International, recalled the overarching
goal:
4. “
Let
’
s control the things we can. We had already
changed our business model, and we had to
make some really tough decisions.
”
Senior management con
centrated on three priorities:
aligning costs to meet the demands of the turbulent
business climate; managing cash for greater
liquidity; and maximizing market share by targeting
consumers in a more effective, efficient manner. As
a result, the company aba
ndoned brand advertising,
shifting to promotional and point
-
of
-
sales methods.
“
We spent our time talking directly to them so we
used more digital media,
”
5. Todman said.
To underscore the urgency, management also
ramped up internal communications. It was crit
ical
to make and implement decisions at a faster pace
and, at the same time, secure employee buy
-
in. So
board members met once a month instead of six
times a year while managers spent more time meeting
with the rank and file.
“
Philosophically, our approach
is to be straight, be honest, tell people exactly
what is going on,
”
said Todman.
During the challenging financial period, Todman
focused on the North American market. He also
completed the integration of Maytag into the
Whirlpool product line. Todman focused on revamping
6. the product line by closing costly plants
and educating the entire staff on both companies
before introducing the new models. Todman oversees
brands in Europe, Latin America, and Asia
with duties that inc
lude management of global
information systems and global strategic initiatives,
including efficiency and innovation.
Jeff Fettig, Whirlpool Corp. CEDO and chairman,
said,
“
Mike has a number of strengths. First, he
’
s got
great expertise in being a global le
ader. He knows
how to operate effectively with different cultures
and different people. He also knows our operations
very well
—
our strengths and weaknesses, what we
can do and what we can
’