Case Analysis #4
"Lynn Tilton’s Leadership Helps Turn Around Failing Companies"
Kevin Keating
04/25/2013

Lynn Tilton is a unique and self-confident person, her education and life experiences make for an interesting study in leadership.
Using Table 14.3 to evaluate the extent to which Lynn Tilton displayed the characteristics of personal traits she certainly exhibits are:
•	Task competence
•	Intelligence
•	Knowledge 
•	Problem solving skills
Each characteristic is exhibited and displayed by her education and the how she accomplished it, which was as a single mother and long hours.  Her interpersonal competence was illustrated by United Steelworker union staffer Duane Lugdon’s comment about her being human and honest and that the “workers really take to Lynn.”  In addition, her intuition was revealed when she remarked that the decision to buy fire truck maker American LaFrance was made more with her heart then with her head, even though buying American LaFrance has yet to yield the turnaround that is representative of her track record.  Tiilton also shows her biophysical traits by the long hours she keeps and the homemade concoction she sips to keep healthy.  Her personal trait of self-confidence manifested by the example of her quick retort with Ford Motor Co.’s purchasing chief, Tony Brown. In response to his question if she was like other private equity chiefs and “strip and flip” the companies she shot back with “You must be mistaken, it’s only men that I strip and flip. My companies I hold long and closer to my heat.”  In addition her sociability is demonstrated by the artifacts people have given to her that adorn her walls.  The picture of her stretched out on the hood of a Mercedes shows she is an extrovert, whereas, her education and track record shows reinforces her self-efficacy.  Additionally, the manner in which she interacts with the employees and “walks the (production) lines” continues to show the social interaction that she employs in her every day approach to the tasks at hand.
The leadership traits Lynn Tilton displays are as the self-described “benevolent dictator.”  This leadership trait is both positive and negative.  The positives of this trait are she is able to move quickly when dealing with failing companies because everyone knows she is the ultimate decision maker.  Juxtapose the fact that it can also be a negative, by her own admission one of the negative leadership traits she displays is benevolent dictator which lets her follower have control but only to a certain point.  
Tilton displayed situational approaches toward leadership by changing from trading debt with her own money to taking control of the companies whose debt she was acquiring to maximize her profit.  In addition she is a leader in the movement to make the United States a manufacturing country once again. Tilton believes that becoming a manufacturing country is an important step to reestablishing the dominance.
•	The four types of transformational leadership behavior displayed by Tilton are; inspirational motivation she is able to motivate employees of failing companies enough that they buy into her programs and turn the companies around.
•	Idealized influence is best exhibited by the fact that the United Steelworkers Staffer Duane Lugdon is quoted as saying the workers at the Maine paper plant thought “she’s just human and honest with people. I don’t say that about many CEOs.”
•	Individualized consideration is exemplified by her bonding with a worker at her MD helicopter plant in Arizona with earthy jokes and her detailed knowledge of metal alloys and machine-tools.
•	Intellectual stimulation is best represented by the business of turning around failing companies, each presenting its own unique problems and therefore requiring unique problem solving and strategies.
After reading the “Management in Action” about Lynn Tilton I think I would like to work for her, she displays seems to be a transformation leader that has enunciated her mission clearly and seems to have enough interest outside of the job to make life stimulating.  While appearing to be a bit unorthodox with her style her intelligence and approach seem unique enough to make working for her fascinating, moreover the number and variety of companies she connected with would appear to make for some interesting work days.
This case taught me leadership comes in all shapes and styles.  No style of leadership can cover all the different situations.  One particular management style may not work in all situations, however, a particular style can be the dominate force of a particular manager. Tilton’s management style seems to work with turning around companies, however, would the same management style work with trying to take an established, well performing company to the next level of success?   I would tend to think that her management style would need to be adjusted but that certain aspects of her “blueprint” may be effective. Lynn Tilton went from leading a company trading debt to leading a revival of manufacturing in America.  As her journey progressed she made mistakes and adapted her leadership style to deal with them.  As she succeeded she adapted her leadership style to deal with that.  In addition, leadership traits have different facades, however, they also have certain commonalities.
As with most successful leaders, Lynn Tilton brings a unique mix of leadership style and personality to the challenges of leading and managing her many organizations.