Leadership 7th Edition by Andrew DuBrin, Ann Fisher, Andrew DuBrin

Exercise 7

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 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 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.
What advice might you offer Todman to be even more successful as the head of Whirlpool?