MGT 504 Management & Organizational Behavior Case Study Alan Mulally’s Restructuring of Ford Motor Company
Alan Mulally’s Restructuring of Ford Motor Company Case Study Alan Mulally received an opportunity to turn around one of the most famous brand names in the United States. Ford was struggling; losing more than 12.7 million in 2006 (Nelson p558) and desperately needed a change. Alan Mulally took the challenge, and stated he would do what many thought was impossible at the time – make Ford profitable. He did just that.
Mulally knew Ford had issues and the first step was to identify those structural issues. The issues included a wide variety of models and styles of automobiles. A work force that was not collaborating or communication to a high standard, hypercompetitive and relentless competition in pricing and sales, and possibly the most important was lack of accountability.
With the development of his strategic plan of ...view middle of the document...
S and Europe. Mulally’s strategy was not new; he implemented a similar strategy for Boeing when that company was struggling with a 2.7 billion loss in 1997 (Henry). What Mulally was able to do is
take a successful strategy that was proven and tested and mold it to fit into the automobile industry. The strategy of One Ford is key to understanding the success of Mulally and Ford. By closing the gaps in the global operations, putting accountability in place and delivering on what customers wanted, One Ford and Mulally have been a success. Mulally had the vision, understanding of the contextual variables, and the ability to compile it into an organizational design. This was the backbone of his success. Mulally is aware that succession planning is the key to Ford’s overall strategy and tactics and has announced his successor COO Mark Fields (Taylor). One really needs to understand what Mulally really accomplished with One Ford fourpoint business plan. He was able to keep Ford out of the bailout and focused on growth and opportunity. He brought a company that looked doomed for Government ownership into profitability and success, and is still one of the leaders in the industry. Mulally might have said it best when he said, “But we stuck with the plan, we stayed on the plan, and we’re very pleased that today we have a foundation now.” “Not only have we fixed the fundamentals of the business, but we kept investing in the product.” This type of leadership and message can only encourage everyone around him. Mulally’s business cards read, “One Team ∙ One Plan ∙ One Goal” and that sums up a power strategy and something from which all leaders should learn.
Henry, Jim. "Engineering a Comeback." n.d. Success.com. 10 1 2013 . Hochleutner, Mike. "Ford CEO, Alan Mulally, on remarkable turnaround: It took leadership, courage, and service to something great." 9 02 2011. http://www.stanford.edu. 10 1 2013 . Nelson, Debra L and Quick, James C. Organizational Behavior: Science, the Real World, and You. Mason: South-Western, 2013. Taylor, Alex III. "Ford's smooth CEO succession - plus a few bumps." 1 11 2012. CNN Money . 10 1 2013 .