Mulally was forced into a difficult position as soon as he was named CEO of Ford, and one of his first initiatives as the company's leader was to take over their "The Way Forward" restructuring plan. This plan was designed to turn around Ford's massive losses and declining market share, and was made possible by Mulally's effort to borrow $23.6 billion by mortgaging all of Ford's assests. At the time the loan was viewed as a sign of desperation, but now many believe it is responsible for stabilizing Ford's financial situation and saving the company from bankruptcy. Ford is the only one of the Detroit Three (Chrysler, Ford, GM) that has not asked for a government loan, and while Chrysler and GM have majorly downsized as a result of bankruptcy, Ford has emerged as the largest US automaker after the industry crisis in 2008-2009. Because of Mulally's decisions, Ford had its first profitable quarter in two years, and his predecessor and current chairman, William Clay Ford, said of Mulally: "[he] was the right choice [to be CEO], and it gets more right every day".
In addition to his brilliant efforts to save the company through the industry crisis, Mulally is often praised for his hands on management style and company-first attitude. For example, during hearings for government loans to Ford, he and other industry leaders were criticized for flying to Washington, D.C. in corporate jets. During a subsequent meeting, he traveled from Detroit to Washington by a Ford-built hybrid vehicle, and sold all but one of the company's corporate jets. He also lives very close to Ford's global headquarters in Michigan and arrives to work at 5:15 AM and works for 12 hours every day.
His achievements at Ford earned him a spot in the 2009 Time 100 List, and I believe this recognition is very well deserved. Mulally truly understands the concepts of corporate management and business in general, and this allowed him to make the right decisions to save his company from collapse in the midst of an industry crisis and have it emerge at the top only a few years later. Alan Mulally is a truly influential figure in the automotive industry and the world of business as a whole.
Morgan Duff
http://investing.businessweek.com/businessweek/research/stocks/people/person.asp?personId=370889&ticker=F:US
http://media.ford.com/article_display.cfm?article_id=24203
http://en.wikipedia.org/wiki/Alan_Mulally#Ford_Motor_Company
I am glad you chose him as an influential figure. I just a paper about Ford for one of my classes and he really has done a great job transforming the company.
ReplyDelete