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Effective Strategies Paper

In: Business and Management

Submitted By melindacramer27
Words 1876
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Effective Strategies Paper

MGT/312
June 29, 2015
Gregory Lucht

Effective Strategies Paper

Most adults today have had the pleasure of driving a Ford, or they know someone who has. Henry Ford was known as an amazing innovator. Ford's history comes with great stories of success; however the recession that started in 2000, caused the Ford Motor Company to experience some downturns. After ending his stay as President and CEO of Boeing Commercial Airplanes, Alan Mulally joined Ford Motor Company and helped change its path towards bankruptcy. This study will describe the team-building techniques and strategies used by Alan Mulally to transform the Ford Motor Company. The research conducted on the condition the company was in when he took over and where it is today. The strategy used to establish the team and how the plan executed will be discussed. Also, the rationale will be provided for other procedures that could have utilized in a similar situation.
Who Is Alan Mulally?
Alan Roger Mulally was born in 1945 and is an accomplished business executive worth over twenty-three million dollars. Companies look to him for innovative ideas that will get them going again. After college, he decided to join the Boeing organization as an engineer. Here, he was able to contribute to the different Boeing models; including the 777 project. He eventually moved up within his department due to his incredible contributions. According to "Ex-Ford Ceo Alan Mulally Joins Google’s Board Of Directors" (2013-2015), "Notes that from March 2001 to September 2006, Mr. Mulally served as Executive Vice President of the Boeing Company and President and Chief Executive Officer of Boeing Commercial Airplanes, Inc.” Ford was no longer a leader in the automobile industry and made the decision to hire Mulally to turn them around.
In September 2006, Alan Mulally was named the President and CEO of Ford Motor Company, succeeding William Clay Ford, Jr. He took over "The Way Forward" restructuring plan at Ford to turn around its massive losses, declining market share and lead Ford to become the only U.S. automobile to avoid bankruptcy ("Empowerment, Vision, And Positive Leadership: An Interview With Alan Mulally, Former Ceo, Boeing Commercial—current Ceo, Ford Motor Company", 2015).
Fords Condition When Alan Mulally Took Over
Before Mulally eight year journey with the Ford Motor Company, Ford was headed in the wrong direction. Ford lost billions of dollars, and their corporate culture was losing its touch. The global economic crisis played a key role in this leading automobile company's downturn. Instead, Ford became the only car company to experience a decline without going bankrupt. When Alan Mulally was named the president and CEO of Ford, in 2006, the famous American automaker was on the brink of bankruptcy. The company was preparing to post the biggest annual loss in its 103-year history—$12.7 billion ("Leading In The 21st Century: An Interview with Ford’s Alan Mulally", 1996-2015).
A company that set the example for other firms had nothing to show for it. People still make remarks today regarding Ford's inability to last on the road in the past. Previous Ford owners have developed acronyms for the word FORD. Found on Road Dead and Fix or Repair Daily is amongst the most familiar to me. With such a bad reputation, Ford was losing its stock value as well. The decision to bring Alan aboard will be a part of Ford’s history forever.
Where is Ford Today?
After Alan Mulally had joined Ford Motor Company, it experienced a turn-around unlike any other. In fact, most automaker companies that were as close to bankruptcy as Ford Motor Company was never return from the hardship. The Ford Motor Company needed Mulally, and the results from his experience and hard work paid off. Ford once again emerged as a leading company in the automobile industry. According to "Ford Motor Company Leadership Announcement" (2015), "Mulally has led Ford’s transformation and strengthened its position as one of the world’s leading global automakers. Under Mulally and the company’s One Ford plan for profitable growth, Ford has achieved 19 consecutive quarters of profitability, developed the strongest product lineup in Ford’s history and embarked upon the company’s most ambitious global expansion in the past half century.”
Although Alan Mulally retired from Ford Motor Company as of July 1, 2014, he left an everlasting impression. Bill Ford said,” Under Alan’s leadership, Ford not only survived the global economic crisis, it emerged as one of the world’s strongest auto companies. We always will be grateful to Alan for his leadership, compelling vision and for fostering a culture of working together that will serve our company for decades to come ("Ford Motor Company Leadership Announcement", 2015).”
Team-Building Techniques and Strategies used to transform Ford Motor Company
Alan Mulally's' active leadership style enabled him to build teams and invent strategies to help Ford rebuild and avoid bankruptcy. He believes that one should have a compelling vision and comprehensive plan. According to "Leading In The 21st Century: An Interview With Ford’s Alan Mulally" (1996-2015), Alan Mulally believes “Positive leadership—conveying the idea that there is always a way forward—is so important, because that is what you are here for—to figure out how to move the organization forward”. He has used team building techniques such as including everyone and asking specific questions. Mulally believes firmly in team efforts, and this helped Ford reach its overall goal. Mulally frequently uses phrases including "One Ford," "one team," "the power of groups “and” working together always works" to communicate how much he values team players (Stallard, 2014).
Mulally's ideas and examples helped Ford gain a more competitive advantage against their competitors. Alan Mulally inspired individuals to understand where Ford was going and how they planned to get there. He believes that including everyone in a decision-making process encourages contribution and effort. Building an effective team to execute strategies contributed to Ford Motor Company moving forward.
How the Team-Building Strategy implemented
As an industry leader, Ford must live up to their consumer's expectations. Ford was falling short of these expectations because of foreign car companies producing vehicles more efficiently with less cost. It takes an extremely powerful team to help build a business back up from the ground. Alan Mulally executed key strategies to help build a team that would make a difference. Ford had already experienced the feeling of almost losing everything, and an even more poorly developed team would only make the problem worse. Mulally didn't know very much about the automaker business, so he had quite a challenge ahead. The "7 Practices Of Alan Mulally That Helped Ford Pass Competitors" (January 22, 2014) website following are seven practices that helped Mulally save Ford by transforming its dog-eat-dog culture into a sled dog team that pulls together:
1. Communicate an Inspiring Vision
2. Make Your Values Known
3. Live It
4. Think Win-Win
5. Get Everyone on the Same Page
6. Take a Positive “Can Do” Attitude
7. Be Results Oriented
Alan Mulally frequently communicates an inspiring vision. Ford's people can share a vision and focus on other aspects rather than themselves. He made his values known by observing what expected to reach a particular goal. Mulally's idea of "Live It" means to do what you say you're going to do, and to be honest about the challenges that you face. Mr. Mulally has a win-win mind frame. He doesn't believe that competitors should be looked at as competitors. Instead, he prefers to work with them to reduce costs and bring greater profits. Ensuring that everyone is on the same page is another way to execute your team-building strategies, and this is something that Mulally thinks to be important.
Holding meetings and having business plans are essential to getting everyone on the same page. Taking a positive "can do" attitude can make a huge difference in the success and production of a company, if you are already thinking negatively, the results may be just that. Mulally also believes in being results oriented. The "7 Practices Of Alan Mulally That Helped Ford Pass Competitors" (January 22, 2014) website notes that doing so grounds the group in reality and provides an objective means of assessing where the organization stands. In Ford's case, consistent positive results help build greater unity among the overall team.
Other Strategies Many automobile companies have been in similar circumstances. There are also businesses that are unrelated to the car industry who have used effective strategies to build strong teams to help a company rebuild its empire. Teams that work together develops a better chance of maintaining a business are successful. Other strategies that might work for a similar situation to Ford's include but are not limited to; Selection of the team members, promoting trust, and having fun.
Every individual brings their set of skills and member selection is key to the overall "attitude" of a team, and may determine the projected outcome. Developing trust is important because without trust there is a risk of failure. If a team doesn't believe in each other, a conflict will be a continuous issue, and with conflict arising, teams are unable to focus on a project entirely. Having fun when working to reach a common goal with other people has been known to enhance the outcome of a proposed project. When people can work and have fun, your company is almost certain to see positive results.
Conclusion
Alan Mulally and his transformation of the Ford Motor Company is an important part of the automobile industry's history. Alan Mulally used effective strategies to rebuild the Ford Motor Company. The Ford Motor Company went from being a leader in the industry to almost being bankrupt. Alan Mulally was instrumental in turning a large company like Ford around. He used unique team-building techniques and practical strategies to help the Ford Motor Company transform into the leader it is today. Ford's condition before Mulally's' arrival was heartbreaking to both their employees and consumers. With Mulally's' hard work and Ford's dedication, the company is now more successful than ever.

References
Company Timeline. (2015). Retrieved from https://corporate.ford.com/company/history.html Ex-Ford CEO Alan Mulally Joins Google’s Board of Directors. (2013-2015). Retrieved from http://techcrunch.com/2014/07/15/ex-ford-ceo-alan-mulally-joins-googles-board-of-directors/ Empowerment, Vision, and Positive Leadership: An Interview with Alan Mulally, Former CEO, Boeing Commercial—Current CEO, Ford Motor Company. (2015). Retrieved from http://jmi.sagepub.com/content/19/2/110.abstract
Leading in the 21st century: An interview with Ford’s Alan Mulally. (1996-2015). Retrieved from http://www.mckinsey.com/insights/strategy/leading_in_the_21st_century_an_interview_with_fords_alan_mulally

Ford Motor Company Leadership Announcement. (2015). Retrieved from http://www.at.ford.com/news/Plants/Pages/Ford-Motor-Company-Leadership-Announcement0507-6316.aspx?PlantName=Flat%20Rock
Stallard, M.L. (2014). Seven practices of Alan Mulally that helped Ford pass competitors. Retrieved from http://www.foxbusiness.com/markets/2014/01/22/7-practices-alan-mulally-that helped-ford-pass-competitors/
7 Practices of Alan Mulally that Helped Ford Pass Competitors. (January 22, 2014). Retrieved from http://www.foxbusiness.com/markets/2014/01/22/7-practices-alan-mulally-that-helped-ford-pass-competitors/

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