Leadership @ Ford w/ Alan

Joe FilomenoMilind JagreRoushan KumarAjay MuthukrishnanRaghavendiran NagarajanWenyi 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 TeamGlobal Optimization of Collective Strengths.

One PlanTransparency and constancy of purpose.

One GoalProfitable 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

Referenceshttp://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