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Alan Mulally, Ceo, Ford Motor Company

1171 words - 5 pages

1. Discuss the role of leadership and how it can impact organizational performance.
Leadership is defined as “establishing a clear vision, communicating the vision with others and resolving the conflicts between various individuals who are responsible for completing the company’s vision.” (Vitez) Leadership can have an impact on an organization’s performance.
Business owners will set the leadership tone for their organization by developing a mission of values to operate their company. Company policies or guidelines are set from the company's mission or values
“Successful organizational performance relies on the proper behavior from managers and employees.” (Vitez) Effective leadership ...view middle of the document...

(Hellriegel, & Slocum page 544) Every functional discipline on his team had to be involved and had to know everything. Meetings were held every Thursday. There were no pre-meeting or briefing books. Everyone had to be attentive, else the meetings would be stopped.
He instituted color coding for reports: green for good, yellow for caution, red for problems. "If something is off-track, we are much better at identifying it and resolving it," says CFO Booth. "Not everything turns to green. If it doesn't, we have to modify the plan." (Taylor)
3. Discuss how goal setting helped Ford improve its performance.
Goal setting helped Ford improved its performance. He testified before Congress in December 2008, and made the announcement that Ford would be able to survive the recession without the bailout.
Mulally wanted to compete in every market segment with carefully defined products (small, medium, and large; cars, utilities, and trucks); market fewer nameplates; and become best in class in quality, fuel efficiency, safety, and value. He evaluated the company’s products and he decided to set goals that would make Ford the leader in the industry. Ford decided to sell small cars in the U.S. that were developed in Europe. They disposed of Jaguar and Land Rover in the U.S. He decided to sell those brands to India's Tata in 2007 when there was still a market for makers of luxury vehicles and the company put Volvo up for sale. Those moves have helped Ford separate from GM and Chrysler.

4. Assess Mulally on each element in communication openness including message transmission, trust, agendas and goals.
Mulally communicated to all the employees as to what, when and how the company was going to move forward. He insisted that everyone be involved in the decision making for the company “Communicate, communicate, communicate,” he states. (Hellriegel, & Slocum page544) Everyone had to know what the plan was, its status and any areas that needed special attention.
He created plastic cards with four goals on one side ("Expected Behaviors") and a revised definition of the company ("One Ford") on the other. See Figure 1.
Figure 1.

5. Evaluate the effectiveness of Mulally’s leadership style and recommend whether he should continue with this style, or use a different style.
I believe that Alan Mulally’s has an effective leadership style. “I am here to save an American and global icon” he declares. (Taylor) He drives performance with the Business Plan Review, a meeting with his direct reports, held early every Thursday. Even before he took the job...

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