Analysis and explains the meanings of what I wrote about the three leaders(I will upload to you) at Ford Motor Company. They are Alan Mulally, Henry Ford and Alexander Trotman. Explain how three leaders different management style. Analysis the consequences, both positive and negative, of the three leaders major decisions/changes throughout their tenure with the organization. In addition, please reflect on how this impacts your understanding about leadership styles from studying these three leaders.
Alan Mulally was one of the most influential leader at Ford. In the time of crisis for the country, the recession of 2008, Alan Mulally turned Ford around when it was projected to lose seventeen billion dollars. Mulally choose to leave Boeing Company to come to Ford when Bill Ford contacted him in 2006. At this time, each of Ford’s Regional locations operated separately. They were losing money on all their cars including their House Brands- Jaguar, Volvo, Land Rover, Mazda, Lincoln, Ford, etc. There was no synergy within all locations globally. There was no Scale or integration globally and Ford had a bad cost structure. Ford wasn’t known to be the best in class.
Furthermore, Mullally rectified all these issues by matching production to actual demand and he had to downsize the company by cutting 40% of the workforce. He also repositioned the Ford brand. He created a family of vehicles around being best in value and best in class all around the world. They became more attentive to what the customer wants – fuel economy and safety. Mulally brought his proposal to 500 banks and got a loans amounting to 23.5 billion dollars as a safety net.
Hence, Alan Mullay helped create synergy and group cohesion throughout all the locations. Due to the way previous leaders ran the company, all regional managers were afraid to talk about their failures. When Mulally took charge, he opened a line of open communication without retributions a team. They solved problems by standardizing solutions from other regions and working as a team. Mulally had a vision that he got everyone to follow in order to make all these changes. He reverted back to Henry Ford’s original vision of the company: Opening the highways to all mankind. With this vision, he wanted to have affordable cars for everyone. He also brought cars that were made from Ford in other countries to the US like the Ford Fusion. Alan Mulally was a great leader because he had the courage to make the hard decisions and changed the company’s culture.
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Henry Ford established the Ford motor company, he was known as an innovator who brought cars to the public. Through his innovation, Henry Ford was able to convince investors to invest in his motor company business venture. One thing that set Ford apart from many other leaders of his time was that he possessed the necessary qualities for running the Ford Motor Company. Ford highly valued his employees, believed in equality, and had a heightened awareness of his emotional intelligence. By increasing his worker’s salaries and instituting an eight hour work day, Ford was able to retain and motivate employees incredibly effectively. Another way that Ford showed true leadership was in his standards of non-discrimination. This was a very innovative concept at the time because of the stiff racial divides in the United States that still existed. As early as 1916, Ford’s employees represented over 60 different nationalities and over 900 people with disabilities. A third leadership quality that Ford exuded was his emotional intelligence, which is defined in “Developing Management Skills” as “the ability to manage oneself and to manage relationships with others– [which] has been identified as among the most important factors in accounting for success in leaders and managers.” Ford’s emotional intelligence was rooted in his ability to show customers he understood the value they held in saving money; he was able to show that he cared by being sensitive to customer’s economic needs. Ultimately, Ford was able to rise as an effective and positive leader by breaking standards and creating better understanding of customer values.
“3 Leadership Qualities of Henry Ford.” Center for Work Life. Posted May 7th, 2014.
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Alexander Trotman became chairman and chief executive in 1993. This was directly after the company made a record loss of $7 billion. When Trotman took his position Ford’s shares were worth $11.45 and when he left five years later they were $32.25. Alex Trotman had been with Ford for 38 years and was a driving force to many successes. Trotman never stopped in the efforts to globalize the car industry. “Trotman is as absolute in his faith in Ford people as he is in his advocacy of product leadership. (Article)” Trotman not only focused on consumers but also employees, and worked hard to make sure that Ford was leading a fiercely competitive company. Although Trotman had many great ideas to turn the company around, he also admits there were things that did not necessarily work out. His vision failed because of poor execution. Trotman offered great leadership and it resulted in a great upcoming from the previous years. But the choice of successor may have caused the issues on why after he left his position things headed down south. Trotman was recognized by the Excellence in Technology Award committee for his leadership in the company’s implementation of an enterprise wide networked computing environment. Trotman took a major part in re-engineering the organization to be in a global world. Despite his failures, Trotman was a good leader throughout his time in position and turned Ford around through the duration of his stay.
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