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Alan Mulally of Ford: Leaders Must Serve, with Courage

Alan Mulally of Ford: Leaders Must Serve, with Courage

35 segments available

Alan Mulally, president and chief executive officer of the Ford Motor Company, discusses the turnaround effort at Ford, which took the automaker from an annual loss of $17 billion in 2006 to its most profitable period in more than a decade. Mulally explains that leadership takes courage, to have a point of view about the future and to pursue it in the face of resistance and doubt, in service of something great. Related article: http://goo.gl/9eXZx More about the View From The Top speaker series: http://www.gsb.stanford.edu/vftt All View From The Top videos: http://www.youtube.com/course?list=EC5C14B375A7F2FEA8 Chapters Introduction: A Leap From Airplanes To Autos http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=0m01s The Branding Of Ford: A Worldwide Venture http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=3m01s Student Participation: Bailing Out Ford http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=5m44s The Ford Vision Past And Present http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=9m54s Production And Investment Vs. Demand http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=13m05s Student Q & A: Transportation Solutions For The Future http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=14m30s Student Q & A: Ford's Survival Sets An Example http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=18m03s The Google Car: Who's In Charge? http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=22m27s Student Q & A: The Ford Turnaround http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=24m49s The New Job: Day One And Beyond http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=33m59s There Are No Mistakes: Testifying Before Congress http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=37m13s Student Q & A: American Car Manufacturer, A Global Concern? http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=41m45s Student Q & A: The Return Of The Ford Worker http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=43m54s Student Q & A: The Ford App? http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=47m15s Student Q & A: The Right Credit Helps Sell The Car http://www.youtube.com/watch?v=ZIwz1KlKXP4#t=49m10s

Segments Timeline

1
0:00 - 0:36
0:36 duration53 words

A Call to Serve: The Ford Opportunity

Alan Mulally shares the pivotal moment when he received a call from Bill Ford, asking for help to turn around the struggling Ford Motor Company. He reflects on his successful tenure at Boeing and the weight of the decision to leave it all behind to serve another iconic American brand. This segment sets the stage for understanding the challenges Ford faced in 2006.

"[MUSIC] Let's give a GSB welcome to Ellen Melleli. [SOUND]. Thank you. Thanks. Thank you. Thank you. So, how are you? Good? I'll be outside after this to take your car orders. [LAUGH] We've got some g..."

2
0:36 - 2:34
1:57 duration336 words

The State of Ford in 2006

Mulally outlines the dire situation at Ford in 2006, revealing a projected loss of $17 billion and the company's fragmented structure as a 'house of brands.' He discusses the lack of synergy among global operations and the challenges posed by labor agreements, which hindered profitability. This segment highlights the critical context for the turnaround efforts that followed.

"First of all it's really neat to be back, in the MBA program. And what I thought I'd do is, you're still studying case studies, right? Do a lot of that? And they describe the situation, give you lots ..."

3
2:34 - 4:12
1:38 duration323 words

Identifying the Challenges

In this segment, Mulally elaborates on the specific challenges Ford faced, including unprofitability across brands and a lack of competitive quality and efficiency. He emphasizes the need for a comprehensive strategy to address these issues, setting the groundwork for the transformative changes he would propose.

"And here's the situation. I check with our finance people and they give me the the great news that we are projected to lose $17 billion in 2006. You could run out of money really fast. At $17 billion ..."

4
4:12 - 5:02
0:50 duration123 words

Engaging the MBA Class

Mulally invites the MBA students to brainstorm solutions for Ford's challenges, encouraging them to think critically about the company's future. This interactive segment showcases his leadership style and belief in collaboration, as he seeks input from the next generation of business leaders.

"Also, we had never, we really hadn't made a commitment to the investing class or the competition so we were kinda competitive on quality and fuel efficiency and safety and really smart design. And. Bu..."

5
5:02 - 6:43
1:40 duration188 words

Student Insights: A Path Forward

As students propose various strategies to improve Ford's situation, Mulally highlights the importance of innovation, quality, and understanding customer needs. This segment captures the essence of leadership as a collaborative effort and the value of diverse perspectives in problem-solving.

"The MBA program. We've got engineers, we've got business, we've got the smartest people in the world right here. Right? OKay, what would you do? Okay, just shout it out. Okay, now I'm going to take no..."

6
6:43 - 8:56
2:12 duration277 words

The Vision for Ford's Future

Mulally emphasizes the need for a compelling vision to rally the Ford team around. He discusses the historical vision of Henry Ford and how it can guide the company's future direction. This segment underscores the significance of leadership in creating a shared purpose and inspiring action.

">> Figure out what customers want. >> Really? >> [LAUGH] >> [INAUDIBLE] >> Overhaul your design process. Absolutely. End of production. Maybe do it together. [LAUGH] What do you think the customers re..."

7
8:56 - 12:01
3:05 duration472 words

Returning to Henry Ford's Vision

In this reflective segment, Mulally revisits Henry Ford's original vision of making transportation accessible to all. He articulates how this vision can be revitalized to guide Ford's turnaround strategy, focusing on quality, efficiency, and a comprehensive family of vehicles.

"Right? So, when you do a transformation like this the most important thing is when you have a plan... But two, do you have the finances in place? Cuz if you run out of money during the, during the tra..."

8
12:01 - 13:59
1:57 duration393 words

Implementing the Turnaround Strategy

Mulally outlines the strategic actions taken to revitalize Ford, including focusing on the Ford brand, investing in new vehicles, and aligning production with market demand. This segment illustrates the practical steps taken during the turnaround and the importance of teamwork in achieving success.

"And at the time, January 24, 1925, he's at the top of his game. He has 56% market share worldwide. Every country around the world wants Henry to come set up his operation. He's wildly successful by an..."

9
13:40 - 14:20
0:39 duration154 words

One Team, Global Approach

Mulally outlines Ford's commitment to operating as one cohesive team across the globe. He introduces the new C1 platform for the Focus, which allows for mass production of vehicles tailored to local markets while maintaining efficiency and cost-effectiveness, highlighting Ford's competitive edge.

"They want you to be successful. They actually would like you to pay the money back. Not quite as fast as we're paying it back now, cuz they like to get some interest, more interest too. And then the l..."

10
14:23 - 15:10
0:47 duration132 words

Sustainability and Future Transportation Solutions

Addressing a student's question, Mulally discusses Ford's role in creating sustainable transportation solutions. He outlines the company's focus on improving internal combustion engines, exploring biofuels, and investing in electrification, while emphasizing the need for infrastructure development to support these advancements.

"That's my report to the committee. Nice job. Okay, now, what are you thinking about and maybe if you just, we've got some microphones, although it's pretty good here, too. And maybe just introduce you..."

11
15:10 - 16:44
1:33 duration304 words

The Road Ahead: Energy Independence and Sustainability

Mulally elaborates on the importance of energy independence and environmental sustainability. He discusses the need for public-private partnerships to address energy policies and emphasizes Ford's commitment to using recycled materials in vehicle production, showcasing the company's dedication to minimizing resource use.

">> Absolutely, this is a really important question, and I'm really, I'm just so pleased that the position Ford is taking going forward. We, part of our business is gonna be how to we have transportati..."

12
16:44 - 17:29
0:45 duration176 words

The Role of Citizens in Energy Decisions

In this segment, Mulally stresses the critical role citizens play in shaping energy policies and sustainability efforts. He highlights the need for collective decision-making regarding clean energy generation and the importance of addressing structural economic issues for a sustainable future.

"[LAUGH]. >> But I think electrification will see more and more. And then, we haven't, we're still very very positive about hydrogen. But the issue there as you know is, that one, you have to have the ..."

13
17:29 - 18:00
0:30 duration102 words

Ford's Commitment to Recycling and Resource Efficiency

Mulally shares Ford's achievement of using 80% recycled components in their vehicles. He emphasizes the company's commitment to resource efficiency and minimizing waste, reinforcing Ford's dedication to sustainability and responsible manufacturing practices.

"What do we wanna do about energy independence and security, right? What are we gonna do, what are we gonna do about, generating, our electricity clean, cuz you can't just be working on using it clean,..."

14
18:00 - 19:31
1:31 duration285 words

Manufacturing's Role in Economic Growth

Mulally discusses the significance of manufacturing for economic growth and energy independence. He reflects on the challenges faced by the U.S. economy and the need for a collaborative approach to address trade and budget deficits, positioning Ford as a key player in the solution.

">> hi. My name's Alex. Thank you so much for being here today. >> Glad to be here. >> I'm actually a joint MBA and Masters in public policy student. >> Very good. >> And I, I see Ford as, basically a ..."

15
19:31 - 20:58
1:26 duration293 words

The Intersection of Economic Development and Sustainability

In this segment, Mulally highlights the critical intersection of economic development and environmental sustainability. He advocates for public-private partnerships to tackle these issues and emphasizes the importance of competitive manufacturing practices to ensure a prosperous future.

"to Washington D.C. I felt like I was running drugs or guns. You know, if you're from the auto industry, because, they stood so tall, for trying to help people understand what the cost benefits were fo..."

16
20:58 - 22:15
1:17 duration260 words

Creating Value Through Innovation

Mulally concludes by discussing the importance of creating products that meet consumer needs and doing so more efficiently than competitors. He underscores the necessity of a profitable growth plan for Ford, reinforcing the company's commitment to innovation and market leadership.

"Yes. Is now the time to, to really, move those up on the agenda? Absolutely. I think there's no reason, why back to your question about the United States, why we can't compete with the best in the wor..."

17
22:15 - 23:30
1:14 duration224 words

The Future of Autonomous Vehicles

Responding to a question about the Google Car, Mulally shares his thoughts on autonomous vehicles. He acknowledges the technological advancements but emphasizes the irreplaceable role of human drivers in complex situations, highlighting the challenges and considerations for the future of self-driving cars.

"Yes sir? >> so. >> I've never had a question asker so close. [LAUGH]. >> Are you okay? >> I, I'm feeling fine, how are you? >> Yeah, very good. >> Okay. So, I wanna know what you think about the, the ..."

18
23:18 - 24:00
0:41 duration141 words

The Future of Driving with Technology

Mulally shares his vision for the future of driving, where technology enhances the driving experience rather than replaces it. He describes how Ford vehicles will integrate advanced technology to keep drivers informed and connected while maintaining control. This segment highlights the balance between innovation and the human element in automotive design.

"And so, I think that, that, you can write these specific uses of it, but it be very controlled. And there's no reason technically, you can't do it. but, you can imagine all the different issues that g..."

19
24:00 - 25:02
1:02 duration187 words

Cultural Transformation at Ford

Alan Mulally reflects on the cultural challenges he faced at Ford upon his arrival. He discusses the need for a unified vision and collaboration among teams to overcome a fragmented corporate culture. This segment illustrates how leadership can initiate cultural change by fostering teamwork and a shared purpose within an organization.

">> Thank you. [LAUGH]. >> You're welcome. Yes sir, oh, oh I'm sorry [INAUDIBLE]. Yes. >> I got a mic. >> Okay. [LAUGH] >> You win! >> Yeah. I'm, I'm Clay Calhoun. And I'm a, a second year student here..."

20
25:02 - 26:10
1:07 duration199 words

Creating a Compelling Vision

In this segment, Mulally emphasizes the necessity of having a compelling vision for an organization. He recounts how he brought together various skill teams at Ford to create a cohesive strategy. This approach not only aligned the workforce but also instilled a sense of purpose and direction, crucial for the company's turnaround.

"I was thinking that, one of the things Bill Ford, that bill ford was asked one time about the culture. And, I think he used the Kremlin comes to mind. [LAUGH]. >> From a, you know, past history. And, ..."

21
26:10 - 27:01
0:51 duration174 words

Weekly Business Plan Reviews

Mulally describes the implementation of weekly business plan reviews at Ford, where leaders from around the world would gather to assess progress and address challenges. This practice fostered transparency and accountability, allowing the team to stay aligned on goals and quickly respond to issues. This segment highlights the importance of regular communication in effective leadership.

"So it was pretty, scary. And everybody's kind of looking out for themselves and a lot of people were leaving and. So the only thing that I, I know to do is, just like my days at Bollingworth. We got t..."

22
27:01 - 28:11
1:09 duration233 words

Turning Challenges into Opportunities

In this segment, Mulally shares a pivotal moment when a production issue arose at Ford. Instead of assigning blame, the team collaborated to find solutions, demonstrating a shift in culture towards support and teamwork. This story illustrates how leadership can transform challenges into opportunities for growth and improvement.

"to honor, time changes in Shanghai, and, and the Australia and everything else. So we've got the clocks all up on the wall. We're all interneted, connected on the internet. We have screens that were o..."

23
28:11 - 29:32
1:21 duration240 words

The Importance of Transparency

Mulally discusses the significance of transparency in leadership, particularly in the context of Ford's turnaround. He explains how sharing the real status of projects fosters accountability and encourages team members to contribute solutions. This segment underscores the idea that open communication is vital for organizational success.

"Now when we first started this. Remember I told you that, that within a couple of days the forecast was that we were gonna lose $17 billion. So I started the business plan review, the charts are flowi..."

24
29:32 - 30:55
1:22 duration247 words

From Crisis to Confidence

In this segment, Mulally recounts the initial crisis Ford faced, losing $17 billion. He describes how the data revealed the company's challenges and how, through teamwork and a focus on solutions, they began to turn the situation around. This narrative illustrates the resilience required in leadership during tough times.

"South America had an edge avant, in Oakville, Canada and then actuator issue, on the, tailgate, so he stopped production because we're gonna be best in class, we're not gonna deliver one vehicle, unle..."

25
30:55 - 32:29
1:34 duration235 words

The Vision for Ford's Future

Mulally shares his vision for Ford's future, emphasizing the need for a clear direction and collective understanding among employees. He reflects on the importance of having everyone on board with the company's goals to ensure successful implementation of strategies. This segment encapsulates the essence of visionary leadership.

"Was the header of a manufacturer, and he said you gonna need some manufacturer engineers, cuz as soon as you find the problem and fix it, you're gonna have to change all these vehicles and get the pro..."

26
32:35 - 34:31
1:55 duration347 words

The Culture Shift at Ford

Mulally recounts his first experience at Ford's headquarters, noting the absence of Ford vehicles in the garage. He reflects on the need for a cultural shift within the company, emphasizing the importance of focusing on the Ford brand and its identity. This segment illustrates the challenges of managing a diverse portfolio and the necessity of a unified vision to drive success.

"Data tells you everything. But, also now, it was safe enough that you could share how it was. You weren't red, the issue you're working on is red. And, matter of fact, the expectation is that everybod..."

27
34:31 - 36:14
1:43 duration345 words

Unleashing Talent Through Vision

In this segment, Mulally discusses how a clear vision and comprehensive strategy can unleash the talent within an organization. He explains the importance of focusing on core values and creating a roadmap for success, which ultimately leads to growth and productivity. This highlights the role of leadership in fostering an environment where employees understand their purpose and contributions.

"And, then I remember walking up and then walking in that office like I shared with you and I knew, I knew it right away, what we had to do. And you can imagine when the culture change. Can you imagine..."

28
36:14 - 37:40
1:26 duration181 words

Decisive Action in Crisis

Mulally reflects on the critical decisions made during Ford's crisis, emphasizing the need for swift and decisive action. He discusses the importance of collaboration and unity in overcoming challenges, sharing insights on how the urgency of the situation propelled the team to act effectively. This segment underscores the significance of leadership in navigating tough times.

"That's what good companies do. So it's just absolutely unleashed all the talent around the world. By, by focusing the vision, what we are, and the comprehensive strategy and then that relentless imple..."

29
37:40 - 39:55
2:14 duration427 words

Testifying for the Industry

In this candid segment, Mulally shares his experience testifying on behalf of GM and Chrysler during their financial struggles. He discusses the moral dilemma of supporting competitors while emphasizing the broader economic implications of their potential collapse. This segment highlights the interconnectedness of the automotive industry and the importance of collective responsibility.

"I'm so pleased about how we pulled together. I'll tell you, another thing, I wondered, really wondered whether I was doing the right thing by going back and testifying on behalf of GM and Chrysler. I ..."

30
39:55 - 41:10
1:15 duration227 words

Handling Aggressive Questions

Mulally describes the intense scrutiny he faced during congressional hearings, addressing the aggressive questioning from lawmakers. He reflects on the importance of maintaining composure and perspective in high-pressure situations, emphasizing the need for open dialogue and collaboration. This segment illustrates the challenges leaders face in times of crisis and the importance of resilience.

"And so that's another important thing is going really easy on the water. Cuz the whole worlds watching you. [LAUGH] Now on a, on a really serious note. And I think about this all the time. A lot of pe..."

31
41:10 - 43:36
2:25 duration477 words

The Global Perspective of Ford

In this segment, Mulally discusses what it means to be an American car manufacturer in a globalized market. He emphasizes the importance of leveraging global assets and understanding customer needs across different regions. This highlights Ford's commitment to its heritage while adapting to the realities of a competitive international landscape.

"I think, everything on the product was good. So I don't think of it so much the mistakes as that, I think that just pulling together around this compelling plan we decisively, that we, that we did it ..."

32
42:54 - 44:22
1:28 duration304 words

The Importance of Jobs in the Auto Industry

In this segment, Mulally addresses the critical issue of job creation within the auto industry. He acknowledges the challenges faced during Ford's turnaround, including workforce reductions, and emphasizes the necessity of aligning production with real demand. He shares Ford's commitment to hiring 7,000 new employees and the significance of providing jobs as part of the company's growth strategy.

"You know, Ford is number one, number two. All the markets in Europe and it, and Ford of Britain concerned to be a British company and so we're very fortunate. And that's very different and like you sa..."

33
44:22 - 46:38
2:15 duration468 words

Ford's Strategy for Sustainable Growth

Alan Mulally outlines Ford's strategic approach to sustainable growth in the automotive sector. He discusses the importance of right-sizing the company to meet market demand and the role of profitability in enabling future investments. Mulally highlights Ford's plans to hire new employees and expand operations globally, showcasing the company's resilience and forward-thinking vision.

">> Absolutely and we just announced, well can I come back up just a little bit to your, to your start of your question, because it's really important? This is about business and, this is about profita..."

34
46:38 - 51:21
4:43 duration899 words

The Role of Ford Credit in Business Stability

Mulally explains the significance of Ford Credit Corporation in maintaining financial stability during economic fluctuations. He discusses how having a captive finance company allows Ford to support its dealerships and customers effectively. This segment highlights the strategic importance of managing the balance sheet and the company's commitment to returning to investment-grade status.

"In Asia Pacific, we're grow, we're one of the fastest growing companies in Asia Pacific. Find tremendous opportunities. Great market in Europe, a little bit slower growth, a little bit more mature. Fa..."

35
51:21 - 52:11
0:49 duration136 words

A Vision for the Future of Ford

In the concluding remarks, Alan Mulally reflects on his journey and the future of Ford. He expresses gratitude for the opportunity to speak and encourages students to consider careers at Ford. Mulally emphasizes the importance of a global education and the role of innovation in shaping the automotive industry, leaving the audience with a call to action to experience Ford vehicles firsthand.

"okay. I know you're gonna get up and leave. And, and I would take it personally if I wasn't done, so I'm gonna be done. I, was honored, to get a request to come here. I, I grew up in Kansas, I grew up..."