Alan Mulally’s Leadership Dee Carter Organizational Behavior/ BUS 520 August 7, 2011 Alan Mulally has been CEO of Ford Motor Company since September 2006. Upon his arrival, Mulally took over “The Way Forward” restructuring plan (Wilson 2006) at Ford to move the company in a more competitive performance nationally and globally. Alan continues to lead through communication, openness, and the drive to succeed as he did at Boeing Company. Mulally is an effective leader and he knew that it would take everyone reestablishing “One Ford” for the company to achieve the goal of becoming the best automotive brand possible.
Leadership is an essential quality to business. The role of leadership and how it affects Ford is a positive because it has a successful leader in Alan Mulally. Alan is someone who provides guidance, direction, motivation, and consistency. Through The Way Forward plan, Mulally identified specific goals, created a process to achieve them and installed a management system to make sure that the goals are reached (Hellriegel & Slocum, p. 543).
Mulally also forecasted the economic treat of a recession, then he asked Bill Ford to sell off none Ford brands and borrow $23 billion against Ford’s assets to remain independent of the federal government. Mulally knew with rising gas prices that small cars were the cars for the future and he motivated Ford employees to figure out way to improve small cars. Mulally makes communication a priority so that every in the company knows the direction that Ford going. He has Thursday morning meetings and reviews charts to keep everyone focused.
Mulally uses authentic leadership, which refers to individuals who (1) know themselves, (2) what they believe and values, and (3) act on their values and beliefs through open and honest communications with subordinates and others (Hellriegel & Slocum, p. 326). Mulally knows that he is an effective leader because, 1)he served as executive vice president of The Boeing Company, and president and chief executive officer of Boeing Commercial Airplanes. Mulally was named Boeing’s president of Commercial Airplanes in September 1998.
The responsibility of chief executive officer for the business unit was added in March 2001 (2011 Bio). 2) Alan believes and values the fact Ford is an American and global icon (Hellriegel & Slocum, p. 543). 3) Mulally has open and honest communication with all. He wrote a one-page summary of his managerial abilities entitled “Alan’s Leadership”. He also creating plastic cards with the four goals (foster functional and technical excellence; own working together; role model Ford values; and deliver results) and One Ford which embodies one team, one plan and one goal.
Mulally’s thinks that communication throughout the company is key to identifying issues and solving them (Hellriegel & Slocum, p. 544). Goal setting has helped Ford in many ways. One goal was to bring back the Taurus model into assembly in 2010. “In addition to receiving the Edmunds. com Technology Breakthrough Award, the Taurus is serving as the official vehicle of CES, and the 2010 Taurus SHO was dubbed Esquire magazine’s first-ever “Car of the Year” (2010 Ford Taurus). Ford also had a goal to make more fuel efficient vehicles. Ford is an industry leader in fuel efficiency, and customers are pleased with the way we are helping them at the pump,” said Bennie Fowler, group vice president, Global Quality and New Model Launches. “Ford also is absolutely committed to the highest vehicle quality, delivering vehicles that surprise and delight customers while eliminating defects. ” (2011 J. D. Powers) Ford achieved these goals and the company is making new goals such as electric cars. Mulally’s leadership style utilizes communication as a key component.
Mulally has made it clear from the start that the restructuring plan was the guidelines to improving Ford’s finances and obtaining global success. Alan has weekly staff meetings with his executives at a round table show that everyone’s ideas are equally important but he is still CEO. He has faith that by communicating with every level of the business it will promote trust and encouragement to follow the plan. The plastic cards with the four goals one side and the revised definition of the company on the other (Hellriegel & Slocum, p. 326) are a form of motivation and inclusiveness.
Mulally uses each element of communication to enhance the team spirit and build the best team possible. In conclusion, Alan Mulally is a great leader who sets goals, includes his organization, and accomplishes those goals through teamwork. Mulally practices authentic leadership and it is evident in his positive but stern communication with the Ford family. It is also apparent that he creates hope and optimism for Ford’s future. Mulally’s style of leadership worked for Boeing Company and now, Ford Motor Company, so he must be commanding correctly.