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His leadership style is drawn from his experience at Boeing. His prime emphasis upon his
arrival was to focus on the Ford brand, compete in all market segments with product
modification, create your niche of carefully designed products and become the outclass car
manufacturer in terms of quality, fuel efficiency, value and safety. His performance is exactly the
same as he did at Boeing; communications, planning, direct reports and presentations from the
business units. He introduced the culture where every body seems to listen and understand each other.
The respect is an important factor in Mr. Mulally¶s cultural change. Everyone has the right to
speak up but only when they are required to speak. He introduced color coding for the reports;
green, yellow and red for good, cautions, problems. This helped the company executives to
identify and resolve off-track operations and functions. The executive level meetings every
Thursday are regarded as the official norm at Ford where all the people have to tell and explain
what they are up to and which process requires the attention (communications). This helps him to
understand what is happening in the entire organization.
The company is recovering not because of Mr. Mulally¶s cost cut or other operational
strategies but also because of the culture he introduced in the company. Year 2008 and 2009
were the worst for Ford and every other manufacturing company or enterprise but the Ford¶s
profitability in the last quarter of 2009 and the first months of 2010 shows the wisdom, character
and courage of its CEO and his team.
The research based on Alan Mulally¶s success, I have identified five important factors
that I believe every leader must apply in their leadership to bring about the change.
Before starting his new job, Mulally did all the necessary homework required to
learn about the culture and the market position of Ford. This allowed him to come up
with clear understanding of what is required to be done.
He focused on the company¶s core brand, Ford and divested the other brands in
the market. He came up with clear long term plan to invest in the company¶s core brand and borrowed money from banks after sensing the recession. This ultimately enabled the
company to invest in its new production system while avoiding the government aid.
3. CLEAR PERSPECTIVE
He communicates his plans pretty well. He speaks his perspective in a very clear tone to
the members of his organization and outer world. His clear perspective about the fuel
efficiency, safety measures and quality to be factors of consumer preferences serve as
clear, understandable and concise guidelines for the company.
4. TRANSFORM THE CHANGE
He, after devising his plans in the organization, transformed the culture of Ford and
brought transparency and collaboration forward in its culture. Continuous
communications with all the executives and his strategy to listen to their needs and
opinions has revolutionized the entire cult...
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- Winter '13
- Ford Motor Company