Leadership Makeover at Ingersoll Rand: A Case Study Analysis

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Case Study
AI Summary
This case study analyzes the leadership challenges faced by Ingersoll Rand, a diversified industrial company, and the strategies implemented to address them. The company, after a series of acquisitions and divestitures, struggled with siloed operations, directive leadership, and a risk-averse culture. The analysis examines the company's history, problems, and the solutions implemented, including the establishment of a common leadership language, measurable competencies, and a heightened level of accountability. The study also explores the external environment using PEST analysis. The recommendations include training, improved feedback, better communication of company goals, and improved internal recognition programs. The study concludes with a discussion on the strategic priorities, such as emerging markets, innovative growth, and operational excellence, which were critical for the company's transformation.
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Running Head: CASE ANALYSIS
Case Analysis
Name of the Student
Name of the University
Author Note
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2CASE ANALYSIS
Introduction
The leadership means different for different people across the whole world and different
situations. Leadership is actually a problem solving, proactive and looking ahead at the same
time. The effective leaders can easily provide one complete picture of what the future is to look
like when the visions are realized (Aller, Tekarli & Rex, 2017). Leadership is about creating an
inspiring vision of the future, motivating and inspiring people for engaging with the vision,
managing the delivery of the vision, coaching and building a team ensuring effectiveness to
achieve the vision. One of the biggest issues faced by most of the companies is the problem with
the leadership (Andenoro, Sowcik & Balser, 2017). The reason is that leadership can determine
the directions which are taken by the whole organization. Since change is inevitable and
continuous, Ingersoll Rand has gone through many divestitures.
The Ingersoll Rand Inc. is one of the most diversified industrial companies concentrated
on the advancement of life’ quality through the creation of efficient, sustainable and comfortable
environment. The company was founded in the year 1905, having merged the Ingersoll- Sergeant
Drill Company along with the Rand Drill Company. The origin of the company is extremely
significant and interesting because both the companies were the rivals before they had the
combined forces. The American headquarters are located in the North Caroline, United States. It
has office in Dublin having many facilities of manufacturing all across the world. There are some
products offered by the company consisting of the air compressor, the stationery, transport, the
material handling, the utility vehicles and others. There are around 60000 employees
accommodated in the company.
Problems/ Issues Statement
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3CASE ANALYSIS
The company has suffered from poor leadership for many years and they concentrated on the
establishment of solving the issues of management, effective leadership and tried to create the
global interactions. The success of the company needs strategy along with the commitments. The
company is facing the leadership challenges because of the skill gaps in most of the
manufacturing companies. There are certain solutions the company has thought about to get over
the leadership challenge. These are the procurement of an innovative competency model, the
establishment of levels of accountability, the fulfilling of the needs of future workforce with
efficient communication (Antony, Cauce & Shalala 2017).
Analysis
Similar to that of any such US based manufacturer, this company named Ingersoll Rand
is seen as going through various challenges as far as the leadership development is concerned.
The reason behind this is the expanding skill gaps in the whole industry. The younger employees
of the company are not trained properly and provided with the managerial and leadership roles
that they find difficult to fulfill. Another problem that is found to be complicating the matter is
the fact that it takes huge time for the companies to recruit some of the actually talented people
(Codreanu, 2016).
As of 2016, the company has conducted the assembly and the manufacturing operations
in almost 51 plant worldwide. The Ingersoll Rand has further maintained the warehouses, the
offices along with the repair centers across the world providing the products/services either
directly or through the distributors to all of the customers around the entire globe. The Ingersoll
Rand limited is further found as designing and manufacturing the climate control, the industrial,
the construction along with the security products globally. The products of the company consists
of the auxiliary power units, the temperature control units, the compact track loaders, the skid-
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4CASE ANALYSIS
steer loaders, the road construction and the repairing equipment, the mechanical and the
electronic security and scheduling products. The strategy of the company is to become an
integrated solution company having integrated the services/products in order to meet the unique
requirements of the customers. The strategic theme of the company is to leverage the entire
power of enterprise through the dual type of citizenship. The company Ingersoll-Rand desires to
have created some new competencies and values for meeting the expectations and requirements
of the customers (Banerjee et al., 2017).
As far as the core values and the strategies are concerned, the Ingersoll-Rand usually
inspires the progress having unleashed the potential in the technologies and the people for
advancing life’s quality. They help their customers to achieve the goal of progress through
creating the one such positive impact in the entire world by turning the environments in an
efficient, comfortable and sustainable one. Their real vision is to have a world of enduring results
and sustainable progress. The PEST analysis of the case company would show the external
environment of the company. The Political factor is the most important factor which affects the
company and the way it has established itself in different countries. The governmental stability
of the countries, the trade regulations, different tax policies, the employment laws leave impact
on the company and restrict it from expanding more. Regarding the economic factor, it can be
sad that countries like China, Europe, US, India and Middle East are going through a recession.
This factor might influence the buying power of the customers and the ROI of the company.
Since the company makes the construction equipment, the electronic and the mechanical security
products, customers are buying these products because there is growth of safety issues with the
growth of the population (Hofler & Thomas, 2016) The company is at the top in terms preparing
the technically innovative products as the auxiliary power units, the temperature control units
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5CASE ANALYSIS
and others helping the customers and then making ease of the work. The company aims at
improving the R&D through allocating the project budgets.
Recommendations
After the analysis of the case company, some recommendations can be provided to it:
The leaders and the managers can be adjusted to the role through having the training and
the improvement feedbacks. They will feel more comfortable through providing some
inputs to the team members specifically when they try to address challenges.
In order to micro-manage the team, the managers should be given some deep insights on
the traits. It should be done through double checking whatever has been done, overseeing
works of people and keeping the quality control. The Q &A session will be useful in
actualizing this.
The company goals and the mission should be communicated at all levels of the
organization with the help of company posters, meetings with the small groups.
The internal recognition programs should be evaluated and improved which would
encourage the managers. The managers should be made aware of whatever is available to
them having supported them with what they require.
Conclusions
On a concluding note, it can be said that the Ingersoll Rand was going through a focus
on the global integration and an internal face-lift, the talent management issues and the
leadership challenges. The paper has provided a case analysis review for the leaders so that they
can create some unifying commitment out of the employees through a consistent purpose, vision
and values. The case has further revealed some of the strategic priorities such as the emerging
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6CASE ANALYSIS
market and the services, the innovative growth, the diverse and inclusive culture, the operational
excellence and others.
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7CASE ANALYSIS
References
Aller, T. B., Tekarli, N., & Rex, J. (2017). Experiential Student Leadership: Encouraging Self-
Growth Through Leadership Experiences. The Journal of Student Leadership, 1(2), 86-
95.
Andenoro, A. C., Sowcik, M. J., & Balser, T. C. (2017). Addressing Complex Problems: Using
Authentic Audiences and Challenges to Develop Adaptive Leadership and Socially
Responsible Agency in Leadership Learners. Journal of Leadership Education, 16(4).
Antony, J. S., Cauce, A. M., & Shalala, D. E. (Eds.). (2017). Challenges in higher education
leadership: Practical and Scholarly solutions. Taylor & Francis.
Banerjee, A., Banerji, R., Berry, J., Duflo, E., Kannan, H., Mukerji, S., ... & Walton, M. (2017).
From proof of concept to scalable policies: Challenges and solutions, with an application.
Journal of Economic Perspectives, 31(4), 73-102.
Codreanu, A. (2016). A VUCA action framework for a VUCA environment. Leadership
challenges and solutions. Journal of Defense Resources Management (JoDRM), 7(2), 31-
38.
Hofler, L., & Thomas, K. (2016). Transition of new graduate nurses to the workforce challenges
and solutions in the changing health care environment. North Carolina medical journal,
77(2), 133-136.
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