With Ursula Burns As CEO, Xerox Gets Tough Operator
May 21 2009 - 3:44PM
Dow Jones News
Ursula Burns, who takes over this summer as chief executive of
printer maker Xerox Corp. (XRX), will bring to the corner office a
no-nonsense management approach she developed running the company's
operations.
Her style, company watchers say, stands in contrast to the
approach of her predecessor, Anne Mulcahy, who turned around Xerox
by convincing a demoralized staff to trust in the company's future
and revitalizing relationships with customers. Meanwhile, Burns
provided the blunt appraisals needed to right the company's
operations.
"Ursula is very direct. You don't have to guess where you stand
with her and what her reaction is to a proposal - from that
standpoint there is a marked difference," said a former Xerox
executive.
On Thursday, Mulcahy said she will end her eight-year tenure as
chief executive, passing the company's reins to Burns. With the
promotion, Burns becomes the only African-American female chief
executive among the Fortune 500's top 150 companies.
Xerox declined to make Burns or Mulcahy available for
comment.
Burns, widely seen as heir-apparent since her promotion to
president in 2007, was instrumental in the company's turnaround.
Burns is credited with successfully negotiating with company unions
to eliminate or outsource thousands of jobs in 2001.
It also was Burns who was able to bring manufacturing costs down
and found ways to outsource production to more efficient
alternatives.
Burns, a 50-year-old Xerox lifer, joined the company in 1980 as
a mechanical engineering summer intern. She is known for her blunt
directness in speech and actions, and has spoken with a deep
appreciation of the company's culture that preaches "diversity,
quality...and pride in the brand."
Mulcahy, on the other hand, has received praise as a
"charismatic leader," who revitalized a company by cutting costs
while also re-establishing customer relationships and Xerox's place
as a tech leader.
"Often, what a turnaround artist will do is cut costs, and
that's it," said Robert Bruner, dean of the University of
Virginia's Darden School of Business. "That so often proves to be a
one-way ticket to liquidation."
In contrast, he said, Mulcahy was someone "who made the tough
decisions to cut costs but also energized a new perspective."
With Mulcahy staying on as board chairman, she'll still have a
role in guiding her successor. The former Xerox executive said one
of Mulcahy's talents is in identifying and motivating top
talent.
Still, Burns faces the pressure of being judged by the success
of her predecessor.
"Ursula has very big shoes to fill. Anne has been an iconic
turnaround leader in both her ability to energize a dispirited
organization and bring sales and marketing momentum back," Bruner
said.
Both Burns and Mulcahy have received much recognition for their
place in business, appearing high in any list that ranks the most
powerful women. However, Mulcahy - a regular top-ten member of The
Wall Street Journal's annual "Women to Watch" list - said in 2006
that she looks forward to moving beyond gender.
"I yearn for the day when...the word 'woman' is not an
unofficial part of my title...for the day when there is no need nor
interest in a list of most powerful women in business," Mulcahy
said at the time.
-By Jerry A. DiColo, Dow Jones Newswires; 201-938-5670;
jerry.dicolo@dowjones.com