Shell, Siemens and DaimlerChrysler: Leading Change in Companies with Strong Values

This article examines the question of change and the role of leaders in this process. In search of a formula which allows organisations to adapt without drowning in chaos the authors studied Shell, Siemens and DaimlerChrysler for three and a half years in the 1980s and 1990s. They discovered that the negative aspects of change can be avoided if leaders take a company's core values into account and engage employees when they guide their organisation through times of change. Such a leadership approach requires good actions by followers and the team and therefore a large talent pool. Shell and Siemens were able to fare better than DaimlerChrysler in this respect. They were able to take this approach due to a collective leadership style. A charismatic and overambitious leader, however, presented the greatest danger to the performance and survival of an organisation.