If you could look inside the inner sanctum at Ford, what would you expect to see? Anxiety? Panic? Despair?
The economy, after all, is getting worse not better. Monthly car sales in the U.S. have continued to drop precipitously. Ford has lost market share during the past year and reported $5.9 billion of losses in the last quarter of 2009.
But if you spend a day with CEO Alan Mulally and his top executives, as I did recently, what you discover is a group of people who are laser-focused, hopeful, proud and incredibly passionate about the mission they're on - even without retention bonuses or long term incentive plans.
Here are the four reasons I believe Ford is modeling how companies of the future ought to operate:
1. Creating value by valuing people. Alan Mulally is fiercely realistic about the steep challenge Ford faces, but he's infectiously upbeat about their ability to meet it and he makes the people around him feel good, including about themselves. He truly understands that only positive emotions fuel sustainable high performance and that the more valued people feel, the more they're freed and inspired to create more value.
2. Transparency rules. My colleague Annie Perrin and I began our day at Ford at 8:00 a.m. by attending Ford's weekly Business Plan Review, which includes all of its senior executives around the world. Outsiders are regularly invited to observe the meeting. Every executive reports in on any new information that might influence Ford's overall revenue projections, or any other part of its plan. Mulally operates on the assumption that the truth will set you free, even when it hurts.
3. Personal responsibility. The day we were there, one Ford executive described a significant shortfall on a particular projection. It was the sort of acknowledgement that might have prompted high drama in many boardrooms. In this case, the executive simply went on to list the ways he intended to address the shortfall over the coming days, and invited other suggestions. No energy was wasted in wringing hands or avoiding responsibility or assigning blame. The focus was entirely on solutions.
4. A mission worth believing in. Mulally believes that "to serve is to live" and he has rallied the notoriously factionalized and siloed Ford's around a shared mission that is simple and compelling: make Ford the leader in quality, safety and fuel efficiency.
Public opinion may not have caught up yet, but the company has made significant progress on each of those fronts. Consumer Reports last month recommended 70 per cent of Ford's vehicles, for example, vs. 17 per cent of GM's and none of Chrysler's. Ford's cars have significantly improved in reliability and the company has an aggressive commitment not just to hybrids, but also to plug-in electric cars and to equaling or exceeding its competitors in fuel efficiency in all classes.
In the midst of a perfect storm, Mulally has created a culture in which his team is working together closely to create a new kind of company. When the economic clouds finally do part, these executives have a shared conviction that they'll emerge, along with Toyota and Volkswagen, as one of the three truly global automobile companies.
I'm not about to bet against them. I haven't owned an American car in 20 years, but after a day hanging around Mulally and his team, I'm intending to buy a high-mileage electric Ford as my next one.
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They told the government to "Stay the h#$$ out of our company and we will run it not you."
Did I mention that the plan would give those under large car loans the chance to downsize to an energy efficient car, payoff their car loan, and own their own car with a clear title? The masses then would be able to spend and invest their money to create jobs and stimulate the economy?
Oh yeah, and banks will have better balance sheets because of the payment of debt.
Talk about stimulating the economy. Saving American Industry. Spurring technological innovation in America. Securing energy independence.
Sure it is expensive, but so are all the other plans that are in the works. Doesn't seem much more expensive, but it does seem more effective, and more immediate.
I mean, 10 Solar Panels and a Hybrid.
Let the government buy hybrids from Ford, and give one to any tax payer who wants one. They have decent hybrids. 40-45 mpg in city.
There are 135 million taxpayers. Right now the hybrids cost 27k. However, I am sure that an order of 135 million cars will reduce that cost a lot.
Both cars are five-speeds. Both get 33 mpg is all-round driving conditions. I done as good as 37 mpg on interstate cruising.
The car to look our for is the new FIESTA - Coming soon. There's plenty of info about it on the internet. It's a really sharp little car that is taking Europe and the world by storm.
Ford builds great cars.
In the long term, all stock prices go to zero. There is no buy-and-hold strategy in stocks. You have to either be an active investor regularly adjusting a diversified portfolio, or you just buy a low-cost index fund and ride waves of the business cycle.
It's none of my business, but if I were you, I'd get my granddaughter a 1-5 year CD and a savings account at a credit union or thrift bank to begin to teach her the value of financial responsibility.
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Ford is a client of your company.
As the president of your company, can you promote forward thinking and ask:
If UPS can stop its sponsorship of O'Reilly, why shouldn't Ford do the same?
People still talk about buying American. HA! The new Taurus is built on a Swedish chassis (Volvo). SUV are made in Mexico and other countries. So me this Amercian car. There is none! Even a Telsa begins in Italy.
The Taurus, while based on the engineering for a Volvo S80 platform, was designed in this country, and is assembled in Chicago. The frame doesn't come from Sweden. It has 90% domestic content, perhaps the highest of any sedan available in the US. The profits go to Ford Motor Company, a US company with its headquarters in Michigan.
Of course nothing is 100% US made, especially something as complex as a car. But are you really saying that there's *no difference* between a car like the Taurus and a Volkswagen built in Europe and which contains virtually no US content?
And let's talk about the supposed Ford SUVs from Mexico. The Escape is built in Kansas City. The Explorer and Expedition are built either in Missouri, Michigan, or Kentucky. The Edge is built in Ontario.
Check out this list from the UAW web site (http://www.uaw.org/uawmade/auto/2008/index.cfm) - it lists the models made by each domestic builder which are built right here in the US. Here are the Ford models built in the US - not Canada or Mexico...
Ford Focus
Ford Mustang
Ford Taurus
Lincoln MKS
Mazda 6
Mercury Sable
Ford Explorer Sport Trac
Ford F-Series
Ford Ranger
Lincoln Mark LT
Ford Escape/Escape Hybrid
Ford Expedition
Ford Explorer
Ford Taurus X
Lincoln Navigator
Mazda Tribute/Tribute Hybrid
Mercury Mariner/Mariner Hybrid
Mercury Mountaineer
Ford E-series Vans