Instructor Resource
Neck, Organizational Behavior
SAGE Publications, 2017
Case Notes
Chapter 11: Leadership Perspectives
Leadership at Campbell Soup Company
Summary
This case discusses leadership changes at the CEO position of Campbell Soup Company starting with Douglas Conant successfully taking over during a time of distress for the organization to Denise Morrison enacting a broad cultural shift within the company. While Conant focuses on divesting business units that did not make sense and improving diversity and inclusion practices, Morrison shifted to an innovative and decisive culture in which managers are focused on making decisions rather than building consensus. Through the change enacted by Morrison, via new product offerings and international expansion, Campbell Soup Company is poised continue to succeed in the every-changing food and beverage industry.
Analysis
This case demonstrates some of the concepts in the chapter by depicting two different leadership approaches and their subsequent impact on an international organization. A key takeaway is matching the leadership approach to the necessities of a given situation. When Conant took over, Campbell’s was struggling and his focus was on improving business operations, reducing the complexity of their offerings, and making the company a great place to work again through his efforts with inclusion. This approach was successful, as was Morrison’s empowering leadership approach. Her decisiveness in giving leaders the opportunity and expectation to take bold actions and big risks results in dramatic shifts in the company’s products and international markets. By removing the necessity to build consensus and support for every major decision, she empowered leaders to make decisions, which the fear of repercussions removed. This case demonstrates different leadership styles as well as the importance of communication and empowering followers. The story of the Campbell Soup Company helps explain the basic concept of leadership and underscores the importance of matching leadership style with the appropriate situation.
Case Questions
1. Describe the type of leader Douglas Conant was when he became CEO of Campbell Soup Company.
In 2001 Conant became CEO of Campbell Soup Company. At the time the company’s sales were slowing, the morale was abysmal, the share price was half of its high value, layoffs were ongoing, and the company was losing its leadership position in the soup category. Conant became a charismatic/value-based leader. This type of leadership captures the leader’s capacity to inspire, motivate, and to expect high performance outcomes from others. By selling business units that didn’t makes sense, updating existing offerings, and improving employee diversity and inclusion he was able to turn the company around. Sales, earnings and market share rose every year under Conant and Campbell Soup Company became a great place to work again.
2. Describe the type of empowering leadership perspective Denise Morrison used as CEO of Campbell Soup Company.
When Morrison became CEO of Campbell Soup Company she implemented empowering leadership. Empowering leadership involves behaviors whereby power is given or delegated to employees which motivates and inspires them to achieve goals. By encouraging employees to take risks and be innovated she was able to give them the power to innovate. Additionally, she was able to lead by example with some of her new ideas and be present for participative decision making. Morrison was front and center about acquisitions, and she unveiled a majorly profitable sales strategy after she challenged her employees to push the envelope and take bigger risks.
3. How did Denise Morrison utilize spiritual leadership when she wanted to see employees take bigger risks?
Spiritual leadership is a values-based style of leadership that motivates employees through faith, hope, and vision and encourages positive social emotions such has forgiveness and gratitude. The concept of spirituality is not necessarily connected with religion; rather it is communicated in the workplace through shared values, attitudes, and behaviors. When Morrison realized the work that Campbell’s needed to increase sales in their highly competitive and changing market she added courage to their core values. By adding the value of courage she encouraged employees to make bolder moves and take bigger risks, but with integrity and always putting the consumer first. Additionally when she added the value of courage it made people unafraid to fail. When they did make mistakes this leadership allowed them to feel the positive social emotions of forgiveness and gratitude. By using a value to lead the company in the direction she envisioned she was able to implement spiritual leadership in the most effective way.