Transformational Leadership of Lee Iacocca
Lee Iacocca took over Chrysler Corporation when it was going out of business. As one article puts it, Iacocca raised Chrysler "from the grave" ("How to Raise a Company from the Grave: Lee Iacocca and Chrysler"). Iacocca started out as an engineer at Ford but was promoted to product development, developing the Ford Mustang, among other models ("Lee Iacocca Biography"). He moved to Chrysler when there seemed to be no hope for resurrecting it; it was in Chapter 11 bankruptcy.
Iacocca's personality is persuasive. He managed to persuade the U.S. Congress to guarantee Chrysler's loans, even while the company appeared to be sinking ("How to Raise a Company from the Grave: Lee Iacocca and Chrysler"). Barbuto points out that a transformational leader has inspiring charismatic vision and behavior, the ability to motivate others, stimulates followers' creativity, and gives individualized consideration to followers' specific needs (Hay). These traits describe Iacocca's personality.
Iacocca's behaviors were transformational also. He capitalized on his strengths, was a hands-on manager, stood on his principles and convictions (even challenging Henry Ford himself), and did not hesitate to make difficult decisions ("How to Raise a Company from the Grave: Lee Iacocca and Chrysler").
Iacocca's effects on his followers were that he inspired them, motivated them, and influenced their behavior. Iacocca changed the way they thought and worked, helping them think outside the box. He changed the way they responded to difficulties. As a result of his transformational leadership, not only Chrysler but also his employees were transformed.
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