Top Caliber Executive: W. James McNerney

Many executives aspire for the top position in the company they work for. Some get that position others don’t.  For a selected few not getting the top position can lead to top positions in other companies.  For other like W. James McNerney, Jr. it meant getting the top position in two other companies.

Walter James McNerney, Jr. was born in Providence, Rhode Island on August 22, 1949. His father was a professor and business executive.  McNerney went to Yale University and earned a B.A. in American Studies in 1971.

His foray into the working world after college wasn’t exactly a fast-paced rise in the corporate ladder. McNerney taught sailing in Lake Michigan. He then worked on a ranch in Colorado before holding and insurance position in London, England. Getting back to school he finished an MBA degree at Harvard University in 1975.

McNerney then started working for well-known companies. He first worked at Procter & Gamble and was a brand manager for two-and-a-half years.  Next he moved to McKinsey & Co.  in 1978 as a senior manager in Chicago, Illinois. He then took care of high technology interests for international markets working out of Germany.

The McNerney joined GE in 1982, a career defining move which cemented his credentials as a top caliber executive. He started out as vice president for GE Information Services and after that had a series of promotions and assignments as head of different multi-billion dollar businesses of GE.  His last position was as president and CEO of GE Aircraft Engines.

With Jack Welch’s impending retirement, the race was on for the next CEO of GE and McNerney was in the running. When it became obvious that he wouldn’t get the top post he left GE. Yet GE executives especially of McNerney’s caliber are always in demand. He became the CEO of 3M in January 2001.

3M operated in 60 countries, had customers in 200 countries and was a $20 billion technology company producing a range of products from health care to telecommunications. McNerney joined the company under tough economic conditions. He reorganized 3M and managed to keep it profitable.

Then on July 2005 McNerney joined The Boeing Company as president, CEO and chairman of the board. He now leads a $68.7 billion aerospace company which is the largest in the world.

Alan Mulally: An Outsider Showing The Way

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.