Alan Mulally: True Leader at Ford
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I, along with the team of 5 people, prepared this presentation as a part of Project Leadership and Communication class in the first semester at the University of Connecticut's School of Business' Master of Science in Business Analytics and Project Management course. It was a great experience where we culminated the ideas from the entire team, comprising of different ethnicities and religions. We got to learn a lot of Project Leadership concepts when we studied the work done by Alan. The most impressive thing I found about him was his humor. He was so poised in the tumultuous situation, which even I want to learn more from him, and others. In conclusion, I would like to recommend this class by Prof. Wilson to every student of the MSBAPM course here at UCONN.
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Alan Mulally: True Leader at Ford
- 1. Leadership @ Ford w/ Alan Joe Filomeno Milind Jagre Roushan Kumar Ajay Muthukrishnan Raghavendiran Nagarajan Wenyi Xu 1
- 2. A Bleak Time for Ford - Financial Crisis! Ford Annual Dividend Changes Ford Stock Price 2
- 3. Who is Ford in 2005? 3
- 5. 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
- 6. 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
- 7. 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
- 8. Who was Alan Mulally 8
- 9. Engineer’s Engineer "flying was art and physics and creativity all coming together." - Alan Mulally 717 707 9 777 767 757 747 737 727
- 11. 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
- 12. Relentless Implementation The Boeing Crisis 12
- 13. Moving Parts 13
- 14. 14 The Recovery Plan - Explored Deeper One Ford
- 15. 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
- 16. 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
- 17. 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
- 18. 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
- 19. 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
- 20. 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
- 21. 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
- 22. 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