The Transformation of Alliedsignal

Abstract

This case serves as a foundation for student discussion about the impact of corporate leadership on the financial- turnaround efforts of large companies. At the date of the case, CEO Lawrence Bossidy has just completed three years at the helm of his firm, and can look back on a record of dramatic change. The tasks for the student are to assess Bossidy's change program and to examine the financial record to determine the magnitude of the improvements. Analysis of the case reveals a broad-ranging corporate- change program and the creation of significant shareholder value since Bossidy assumed leadership of the firm. The case also affords the opportunity to discuss the challenges of creating value by means of a conglomerate strategy.