Effective Strategies Paper
An effective leader has the ability to motivate and influence others. Sometimes all it takes to save an industry is a great leader to turn it around. Having a leader that uses effective team-building techniques and strategies can ultimately save an industry. Alan Mulally was the great leader that saved the Ford Motor Company. When he became CEO, the company was losing billions of dollars annually. His goal was to save the well known and loved Ford Motor Company, and with his great leadership, he did just that. Leadership
"Leadership is the capability of an individual to exercise influence and control over other members to help a group or organization achieve its goals” (George & Jones, 2012). Leadership has a big impact on an organization's success. Leaders must have the ability to develop new ideas, set goals, and develop ways to achieve those objectives. Alan Mulally was brought in as Ford Motor Company’s new CEO and the strategies he used to help the company, and employees made him a great leader. Effective leaders are thought to have a mix of traits including intelligence, dominance, self-confidence, energy, stress tolerance, integrity, and honesty, and emotional intelligence. Along with these traits individual leaders have specific behaviors they perform (George & Jones, 2012). Alan Mulally seems to have many of the qualities that make an effective leader, such as intelligence, self-confidence, energy and integrity and honesty. He is superb at motivating his employee, keeping them well informed and knows how to get the team to work together to accomplish the organization's goals. The arrival of Alan Mulally
When Alan Mulally came to Ford Motor Company from Boeing, Ford was in a massive financial crisis. In 2006 car sales were industry-wide strong, but for Ford Motor Company it was a $12.6 billion loss year (Ingrassia, 2010). Alan Mulally saved Ford from the financial crisis they were in that threatened the survival of the company. He helped turn the Ford Motor Company around and geared it towards being the same household name that people knew and loved. Bill Ford knew he needed help saving Ford, so he called in Alan Mulally. At the time that Alan came in, Ford had previously purchased Aston Martin, Jaguar, Land Rover and Volvo. They had equity in Mazda and owned Ford, Lincoln, and Mercury. The Ford Motor Company was also regionalized, there was a Ford of Europe, Ford of the United States, South America, Ford of India, and Ford of China (Alan Mulally – interview, 2011). One major issue Alan found beside that the company was losing money on all the brands and on all the models Ford was currently making, was that Ford could not make cars in the United States. Due to the cost structure and the agreements Ford had made with UAW, they were unable to make cars. Alan knew that these things all needed to be worked on, so he started working on a five-year strategy to fix these issues (Alan Mulally – interview, 2011). The Strategy
Alan Mulally’s method to effectively save Ford Motor Company was to simplify the business from its current complicated and costly way of being run. Alan’s first mission was to get everyone on board with making changes to the company in hopes to save it. The culture of the business was something that needed to be worked on. The goal was to have everyone from around the world collaborate to focus on Ford. Members from the business units, engineering units, and manufacturing units were all included on the team (Alan Mulally – interview, 2011). Together the team discussed what behaviors were expected of each other. They covered working together, global enterprise, progressive restructure, pricing for people’s needs, and working effectively as one team. They covered everyone helping each other, treating each other with respect, keeping your emotions...
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