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I just finished reading American Icon by Bryce Hoffman. Ford realized they needed to change long before this; around 2001 (around the same time that Bob Lutz w
by csours 11y ago
I just finished reading American Icon by Bryce Hoffman.
Ford realized they needed to change long before this; around 2001 (around the same time that Bob Lutz was preaching to GM). Bill Ford and Mark Fields were already planning to do many of the things that Mulally wound up doing.
What Alan Mulally did was still incredibly amazing - he restructured the reporting structure at the top of the company, increased accountability, increased transparency, increased trust and made people deliver on the plans. He got people to surface their problems at the executive level, where before everyone hid the issues for fear it would be used as ammunition against them by fellow executives.
Mulally emphasised the core brands, and in fact wanted to ditch ALL the brands except for Ford. He got Ford to bring over the European models that were far superior to their equivalents in the USA. He brought the Mazda product development model to Ford, where the engineers and designers sit in the same room. He sped up implementation of Global Ford Production System, patterned in large part on the Toyota Production System. He worked with the UAW to decrease legacy costs by funding the VEBA (UAW run healthcare fund) and trading worker concessions for promises to keep production in the USA. He worked with suppliers to decrease costs and increase supplier satisfaction. He reduced the number of dealers.
When I say "he" did these things above, I mean he pushed for them. In almost all instances they were accomplished by other executives and team members.
The discipline and planning were not luck; the timing was very lucky indeed.