CEO talks on how to lead

Sometimes the key to turning a failing corporation into a successful, money-making enterprise is new management with fresh ideas for the future. Larry Weinbach should know. The 1961 Wharton graduate and current chief executive officer of the Unisys Corporation breathed new life into the technology company when he took over in the mid-1990s. Weinbach, who is also a University Trustee, discussed his experiences in the business world yesterday before a crowd of 50 undergraduates, most of whom were in Wharton, in Steinberg-Dietrich Hall. The lecture was part of the Musser-Shoemaker Leadership Lecture series, which is co-sponsored by the Wharton Management Club. Weinbach began by discussing his relationship with Wharton and with the University in general. Speaking of the elite status that Wharton occupies in the business world, Weinbach said, "That reputation stays with you." He then went on to praise the institution of financial aid for the opportunities it affords children who would otherwise be unable to afford a Penn education. "I came from a family where I couldn't have come to Wharton if I hadn't had financial help," Weinbach said. Weinbach had retired after a 36-year career with Arthur Andersen. But he decided to take the challenge of running Unisys -- which was floundering before his arrival -- because he was unhappy with the monotony of retirement. Weinbach related various strategies that the Unisys corporation adopted under his leadership -- strategies that sparked a dramatic reversal in the fate of the company, which had been $2.3 billion in debt. "At this point, the stock was worth about $5 a share," Weinbach informed the students. "The fact is, most companies don't know what the vision is. There was no motivation of the employees," he added. In addition, Weinbach highlighted the three main things which he believes to be responsible for the success of corporations -- customers, employees and reputation. Encouraging employees to share their ideas with management is one of the key factors that Weinbach believes allowed him to turn the firm around. "The best ideas come from the field," he said. "The best ideas don't come from corporate." To prove his point, Weinbach went to the customers, asking them for their input in the company's performance. "I went to customers and said, 'What do you like about us, and what don't you like?'" Weinbach concluded his speech by discussing the attributes of a good corporate leader. "My definition of leadership is very simple," he said. "It's being someone that people want to follow." Weinbach's speech was in keeping with one of the general themes of the lecture series: to give students interested in pursuing a career in business a chance to hear real-life experiences from those who have already made it. College and Wharton junior Greg Rankin, one of the students in attendance, said, "It surprises me when I come to these things that every company that comes through here, no matter what they do, focuses on their customers."