As CEO of a floundering company, Anne Mulcahy had to make hard choices. She closed divisions, eliminated 34,000 jobs, and trimmed billions in expenses. Mulcahy believes companies in crisis need leaders to make speedy decisions, and she claims that “speed trumps perfection.” Inaction, when action is needed, she says, is often worse than doing the wrong thing. With her team, Mulcahy restored Xerox to profitability. The company paid its debts. Revenues are rising, and the company recently hit $1 billion in net profit. In addition, the stock dividend has been restored. Mulcahy’s turnaround strategy emphasized communication and teamwork, and the belief that Xerox would survive only if it made a long-term commitment to innovation. Under Mulcahy, Xerox has stepped up research and development funding, investing nearly $1 billion a year and filling the pipeline with new technologies. Since 2005, the company has introduced 100 new products. Reflecting the spirit of a revived Xerox, the company redesigned its decades-old logo with a lively new one. The logo is a physical symbol of the company’s rebirth. Today, Xerox is moving to an all-color world, where users can print customized work on demand. It is also making strides in digital technologies, helping customers put their records on digital files. Xerox also wants customers to print less. Erasable paper, invented by Xerox, allows users to program what’s printed on the sheet to disappear within 24 hours, enabling repeated reuse and eliminating waste. Anne Mulcahy’s brand of tough love seems to have worked. Recently ranked number 10 on Forbes’ s list of the 100 most powerful women and named CEO of the Year by CEO Magazine, she masterminded the plan that pulled Xerox back from the brink.

• Instead of declaring bankruptcy, Mulcahy met with key leaders, employees, and customers to enlist their help in turning the company around. What are the potential advantages and disadvantages to making such group decisions?

• Mulcahy could have focused solely on cost cutting and increasing profits for existing products. How does her decision to invest in research and development demonstrate leadership and creativity in decision making?