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Leadership @ Ford w/ Alan
Joe Filomeno
Milind Jagre
Roushan Kumar
Ajay Muthukrishnan
Raghavendiran Nagarajan
Wenyi Xu
1
A Bleak Time for Ford - Financial Crisis!
Ford Annual Dividend Changes
Ford Stock Price
2
Who is Ford in 2005?
3
Who is Alan?
4
High Level Recovery Plan
Get everyone on the same page
Positive leadership-conveying the idea that there is always a way forward
Raise funds
Innovation "Two-thirds of all the research and development in the U.S. is
associated with manufacturing-with a big'M.'"
5
Mulally Enter’s Ford’s Picture
Irvine.O.Hockaday + William Clay = Alan Mulally ,
“How about Alan Mulally of Boeing ?”
Kill Airbus to Kill GM, Chrysler and Others - Same Mission
Not the car guy ? So what !
6
Challenges to Implementing The Path
Forward
Recession and long term debts
Culture Change
Dealers outrage
Labor cost negotiation
Shift to small and medium sized cars
7
Who was Alan Mulally
8
Engineer’s Engineer
"flying was art and physics and creativity all coming together." - Alan
Mulally
717 707
9
777 767 757 747 737 727
Transformation
Engineer Manager
10
Philosophy
"Everyone is part of the team, and everyone's contribution is respected, so
everyone should participate," Alan Mulally told consultants McKinsey & Co.
"When people feel accountable and included, it is more fun."
“Working Together” + “Why we do things” = “I to We, Self to Service”
11
Relentless Implementation
The Boeing Crisis
12
Moving Parts
13
14
The Recovery Plan - Explored Deeper
One Ford
The Recovery Plan - Explored Deeper
One Ford
Bring all Ford employees as a global team.
Focus only on one segment.
Consolidation of production.
Reduce the number of production units.
15
The Recovery Plan - Explored Deeper
Quality > Quantity
One Team
Global Optimization of Collective Strengths.
One Plan
Transparency and constancy of purpose.
One Goal
Profitable growth for all.
16
The Recovery Plan - Explored Deeper
Innovation
Radio replaced with MyFord touch.
Mulally took $23.6 Billion loan to accelerate
Ford’s development of new cars.
Mulally decided to sell owned brands -
increase in focus.
The Rockefeller Habits - 5 second visual check
of business.
17
The Recovery Plan - Explored Deeper
Rockefeller Habits
John D. Rockefeller.
Founder of Standard oil of Ohio.
Less is more.
Metric to track progress.
Meetings’ frequency.
Today widely used in ?
18
The Recovery Plan - Explored Deeper
Increased participation and accountability
Meetings often had guests like an engineer or a
worker.
Color coded all projects-red,yellow and green -
increased accountability.
Leadership was permeated in twelve functional
areas of Ford.
Standardization drove continuous improvements.
19
Outcome After Changes
● Stock price rebounded
● Lower labor cost around $55 an hour
● Increased annual profit ($7.2 billion in 2013)
● Transformed corporate culture
○ One Ford plan —“ One Global Team ”
● Refused Government bailout money
● Surpassed GM as the No. 1 U.S. automaker in 2013
20
What’s Alan Up To Now?
Joined the Board of Directors of Google in 2014
“ It’s really fun to be there as a board member - because
they’re going to change the world. ”
Became a senior fellow at Seattle University in 2016
Working in the Executive Leadership and Leadership EMBA
programs
21
Conclusions
Ford (& Automotive Industry) = Economic Crisis
Strong Leadership
Strategic Business Decisions
Cultural Change
Economic Recovery
“Because there are leaders and there are those who lead.
Leaders hold a position of power or authority, but those who lead
inspire us. Whether they're individuals or organizations, we
follow those who lead, not because we have to, but because we
want to. We follow those who lead, not for them, but for
ourselves. And it's those who start with "why" that have the
ability to inspire those around them or find others who inspire
them”
-Simon Sinek
22
References
http://img.talkandroid.com/uploads/2016/01/ford-go-further.png
http://blogs-images.forbes.com/sarahcaldicott/files/2014/06/36e1a0e8d34b3f018fd152f1d5dcd5e1.jpg?width=960
https://goo.gl/images/dKAFYY
http://www.dividend.com/how-to-invest/the-complete-history-of-ford-f/
http://media.caglecartoons.com/media/cartoons/10/2008/11/19/57852_600.jpg
http://www.denniscarey.com/publications/How%20the%20Ford%20board%20recruited%20Alan%20Mulally.pdf
http://archive.fortune.com/2009/05/11/news/companies/mulally_ford.fortune/index.htm
http://qz.com/431078/how-ford-ceo-alan-mullaly-turned-a-broken-company-into-the-industrys-comeback-kid/
https://gettingbusinessresults.wordpress.com/2012/11/13/start-using-the-same-business-model-as-ford/
http://4.bp.blogspot.com/_otfwl2zc6Qc/TRdRCEGH16I/AAAAAAAAOwU/PFtdfbfGG6s/s1600/car1.jpg
http://www.ted.com/talks/simon_sinek_how_great_leaders_inspire_action/transcript?language=en
23

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Alan Mulally: True Leader at Ford