Good choice or not, Mulally is probably doomed to failure.
Here are the basics. In 2001, Bill Ford, from the family that founded the company with that name, took over as Chairman and CEO at Ford, after sacking Jacques Nasser, who had held the post since 1999. It was clear that the company was in trouble, and the family, in the person of Bill, was riding to the rescue.
Yesterday, Bill Ford stepped aside as CEO and announced the appointment of Alan R. Mulally to that post. Mulally comes from Boeing with a sterling reputation for turning around that company's manufacturing operation and for getting along with workers.
There's been lots of great coverage of Mulally's appointment and its implications for Ford. Here's a selection of the better articles.
On the plus side, it's a good thing that Bill Ford realizes (after half a decade) that he can't do everything. And if, Mulally pulls it off, he could be just what Ford needs to make a big turnaround. But it's going to be tough. Mulally's got a great reputation, but he doesn't have relationships and he doesn't have industry knowledge and it's a tough situation.
Will Mr. Mulally succeed? Probably not.
He surely is a competent and experienced executive with a track record that includes turning around the commercial aviation division at Boeing. He's got the reputation of working well with unions. But there are lots of things standing in the way of his success at Ford. Here are some.
It is very, very tough to take over the CEO job at a company when you come from outside. Double that when you come from a different industry. Double that when the company's in trouble and hemorrhaging talent.
Ford is losing lots and lots of money. It's in about the umpteenth reorganization of its reorganization. There may not be time to do anything much that matters and still get operations in order.
Ford and Boeing are both manufacturers. But beyond bending metal, they don't have much in common. Automotive companies bring out a new product every year or so. Commercial aircraft companies come up with a new product every decade or so.
Ford needs to sell lots and lots of cars through dealerships using mass marketing techniques. Boeing sells a limited product line to a limited and clearly defined market using big-ticket, business-to-business techniques.
Ford is a very insular company in a very insular city. They like outsiders even less than most companies. Just ask Jacques Nasser. Double that if you don't drive a Ford product.
Auto companies like "auto guys." Mulally is an "airplane guy," so much so that he used to draw a little airplane on notes he sent to folks. Ford went after a couple of auto guys first. That makes Mulally at least the third choice.
Mulally has never been a CEO and Ford is a tough place to start. He's also been passed over twice at the company where he's been for almost forty years.
For More
My post, More on Ford, includes pointers to even more articles about Mulally's coming.
Wally Bock helps leaders at every level improve the performance and morale of the group they're responsible for. His latest book, Performance Talk: The One-on-One Part of Leadership, makes learning key leadership principles almost effortless because it teaches through a story, the way human beings have always learned complex lessons best.
Performance Talk just got a rave review from Don Blohowiak. Read about it on his Leadership Now blog.
Alan Mulally was a hero to the Boeing Company. Many are probably wondering why the brass at Boeing let him go. He had charisma, talent, and a penchant for the aerospace business. Boeing should consider making him an offer to get him back.
Reply to this
Thanks for sharing that. I got both Mulally and Bill Ford wrong. I knew Mulally was good, but I didn't think he would be able to push the Jello ball that is Ford culture up the hill. We still don't know if what he's accomplished will stick, the culture change lessons didn't stick after Team Taurus. Within a decade the culture kudzu and overgrown the changes. I got Bill Ford wrong, too, because I didn't think he could pick someone with the tools to do the job.
Reply to this
Thanks for sharing that. I got both Mulally and Bill Ford wrong. I knew Mulally was good, but I didn't think he would be able to push the Jello ball that is Ford culture up the hill. We still don't know if what he's accomplished will stick, the culture change lessons didn't stick after Team Taurus. Within a decade the culture kudzu and overgrown the changes. I got Bill Ford wrong, too, because I didn't think he could pick someone with the tools to do the job.
Reply to this