This public-sourced case offers an opportunity to explore how to think about and approach a change that involves numerous complex issues, including new products, different competitors, cultural complacency, leadership changes, and the impact of the company’s history. The case focuses on Xerox, a storied American company that missed some serious trends in the marketplace, and its new leader’s change approach and past reputation within that context. The case also provides an opportunity to examine two personnel change issues that every manager deals with—“fit” and “coach-ability.”
The case opens with Tony Chen, a newly appointed managing director of Xerox’s managed document services (MDS) division, reflecting on the challenges he faces. There is growing urgency within Xerox to implement change, and a new CEO has been put in place to get it done. Although he is confident in his previous success, having turned around two other divisions within Xerox, Chen knows that his assignment could make or break his career. He knows that change is needed, but what and how much to change seems especially important in MDS. His mandate is simultaneously change and don’t change. How to balance that tension is a major component in this case. Chen is concerned about one of his senior people, who seems to be ignoring the initiative Chen asked him to lead; he is also considering compensation issues and weighing whether he should rearrange or let some folks go. Making such changes would include unpopular decisions and might just backfire this time.
