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Case Study: Alcoa And Arconic Breakdown

Satisfactory Essays

In 2016, Klaus Kleinfeld, CEO of Alcoa, spearheaded the split of Alcoa into two companies, Alcoa and Arconic. Designating a project team, whose sole focus was on the split; ensured a fair distribution of talent and kept morale up. There were to be no distractions in their efforts to communicate a clear strategy, informing down to the third layer where employees would be going in the company. Kleinfeld saw the importance for employees to have time to reflect on where they were going and to create peace of mind that they had a spot in the company. Splits are expensive, but the team was able to come in at the lower end of the benchmark. Sounds good, but now in 2017, Arconic is looking to oust Kleinfeld, due to poor financial results. Kleinfeld

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