It was the worst of times for Toro. It was 1983, and this manufacturer of mowing, spraying, and irrigation equipment was on the brink of bankruptcy. The CEO and COO had left, and more than half of the company's employees had been given their walking papers.

New CEO Ken Melrose was called upon to motivate the remaining staff. "It was a very sobering time. We said we never wanted to have to do that again. So we set out to build a culture that would survive," Melrose said. "We saw an opportunity to really transform the company. It's easier to change a culture, mission statement, and behavior when you're about to go under. Everyone wants to be led in that environment."

After doing some research, Melrose embraced a concept called service leadership and weaved it tightly into Toro's corporation culture. Now, two decades later, the Bloomington, Minnesota–based company thrives, and Melrose still serves as CEO and chairman.

Source: Adapted from Kenneth Hein, "Taking the Lead," Incentive, September 2003, p. 24.