Sometimes it takes an outsider’s view and
outlook to initiate change within a company. This is what Alan Mulally has done
for Ford Motors. The company was losing its position as the number two car
maker in America and losing billions.
Mulally was not exactly new to
manufacturing as he came from Boeing the maker of airplanes. While making a car
has its challenges more so with making an airplane. If a car’s engine stops its
wheels are at least on the ground. If an airplane’s engines stops it may be
thousands of feet in the air. So he
brought in a lot of experience about quality and teamwork. He also knew how to
run a large organization.
Mulally graduated with B.S. and
M.S. degrees in aeronautical and astronautical engineering from the University
of Kansas in 1969 and a Masters degree in Management from the MIT Sloan School
of Management in 1982.
After graduating in 1969 he began working
for Boeing. He was involved in various projects including leading the cockpit
design team on the 757/767 projects. It was the first all-digital flight deck
in a commercial aircraft.
He made his way up the ladder reaching
various senior management positions.
Mulally’s last position was as president and chief executive officer of
Boeing Commercial Airlines. On two occasions he was thought to become the new
CEO of Boeing but was by-passed. His
full leadership talent was meant for somewhere else.
That somewhere else was at Ford Motors who hired
him in 2006. What he inherited was a company going downhill like the rest of
the Big Three in Detroit. His predecessors had taken steps to borrow $23.6 billion
in 2006 which he finally consummated.
This gave Ford the necessary cash flow to help weather the 2008 car
industry crisis that saw General Motors and Chrysler go into bankruptcy and
receive government dole out.
Among the notable changes he made were to
make top executives drive Volkswagens and Hondas instead of then Ford’s money
losing Range Rovers and Jaguars which were eventually sold off. He also focused
on making small fuel economy cars.
When he started in 2006 Ford was headed for
a $12.5 billion loss. Four years later it reported a $6.6 billion profit. The outsider was showing the way.
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