Personalities in top management
Maytag Corporation had as CEO Leonard Hadley, who served the company as a cost accountant since joining the company. In 1996 the corporation hired Lloyd D. Ward to serve as Executive Vice President and President of Maytag Appliances. Ward had a good marketing background, and had a great role in implementing a new product on the market in 1997. The new product was the Neptune washer. In 1999 Ward replaces Hadley as CEO and Chair of Maytag Corporation. In his new position, Ward worked to speed up the development of new products. He also added a group president structure so that division presidents would no longer report directly to the CEO. Ward replaced executives of the company with people that he worked in his previous jobs. This personnel change would backfire in the end for Ward. Some Newton assembly line workers complained about producing faster products, explaining that quality of the products would decrease.
Also some of the workers were disturbed by the fact that Ward chosen to live in Des Moines instead of Newton. During the summer in 2000 rumors of AB Electrolux taking over Maytag made shares to drop from $70 to $30. At that time the board of directors asked for Ward's resignation.
The board of directors asked Hadley to return from retirement, and take over the CEO position once again. This move would be temporary until a new permanent replacement will be in place. Immediately after being empowered once again as CEO, Hadley dismantled Ward's group structure. His explanation was that the structure duplicated many positions and expenses that already existed. Also Ward's plan of outsourcing was canceled. After Hadley was renamed CEO, three executives that were brought into the company by Ward resigned. In 2001, Hadley announced that William Beer will...