Ford Motor Company

Alan Mulally, CEO Ford Motor Company

Abstract

This paper will discuss the leadership Alan Mulally, CEO of Ford Motor Company brings to the company as it is on the verge of financial collapse. It will also provide an overview of how leadership can impact organizational performance, Mulally’s leadership style, the impact of goal setting on performance and assess Mulally’s communication style and provide a recommendation for how he should lead in the future.

Introduction

Alan Mulally was hired as CEO of Ford in September 2006. The company was on the verge of financial collapse. It lost $12.6 billion in 2006 and another $2.7 billion in 2007 (Hellriegel and Slocum, 2011, p. 543). When he arrived at Ford they owned Jaguar, Aston Martin and Land Rover. Mulally believed that these cars were a “dangerous” distraction from Ford’s core business and persuaded Bill Ford to sell off these brands (Hellriegel and Slocum, 2011, p. 543). Mulally sensed a recession in 2006 and decided to borrow $23 billion against Ford’s assets. Taking on more debt was not easy; however, Ford was able to say “no” to government loans in 2008 and 2009 when sales declined allowing Ford to maintain its independence (Hellriegel and Slocum, 2011, p. 543). Mulally’s leadership style played a significant role in the success Ford achieved during these turbulent times

Leadership is the process of developing ideas and a vision, living by values that support those ideas and that vision, influencing others to embrace them in their own behavior and making hard decisions about human and other resources (Hellriegel and Slocum, 2011, p. 4). Mulally is not intimated to lead. He is direct, demanding and could be considered relentless. Mulally has shaken things up at Ford and overhauled the system. At the same time he has been able to share his vision and get by in from all areas of the organization.

The Impact of Leadership on Organizational...