A week ago if you asked anyone in the state of Michigan what the absolute worst job is right now, bathroom attendant at the downtown Metro bus station would probably just edge out CEO of Ford Motor Company. I mean who in their right mind would voluntarily sign up for the occupational equivalent of lightning rod, a position that is certain to see many rough miles before the clouds clear? And one where the only reprieve from dealing with angry unions and threatening employees comes in the form of livid shareholders, a punishing media, and a political shoulder so cold, the Red Wings could host their pre-season on it.
A closer inspection of the new CEO's daily planner (especially over the next year) in comparison to his pay package however, paints a much different picture.
The recent announcement by Ford Motor Company, well just a very relived Bill Ford, Jr. actually, that he was replacing himself with longtime Boeing executive Alan Mulally came a bit out of the old Tiger stadium's left field for many. When you think about it, it shouldn't really though; Bill Jr. has been looking to hand over the reigns to anyone with the stomach for it, as long as they didn't have "Mark" or "Anne" anywhere in their name.
What may be legitimately surprising however, is the timing of the change. Stock prices of the Big Two have (no kidding) risen recently, gas prices are at a year time low, and Ford has just re-introduced its new, updated "Way Forward" plan. It almost seems as if Mark Fields and Mark Schultz had put out just enough fires for Bill Ford to catch his breath.
Apparently it was just enough diversion to let him sneak out the back door.
Now, obviously it has taken Ford several months to wear Mulally down and will no doubt take a couple of years to fully wean him off of his Boeing stipends, but their must have been something in Bill's sales pitch that caught Alan's attention. (A win this past weekend by Bill Ford's Lions over the Seahawks would have been just perfect, we'll see how they do against the Bears)
If only Mr. Ford could have channeled some of that sales prowess out of the boardroom and into the showroom to move a few more Mustangs.
Mr. Mulally must see this as an opportunity to place a crown jewel in his cap, before he finishes out his career, which is a chance it now seems (for one reason or another) he may not have gotten at the aerospace giant. The other thing is, he looks at Ford Motor Company and sees that much of the heavy lifting has already been done. The only decisions he has to make are what to serve at the Anne Stevens (EVP, COO) going away luncheon and where he wants the company plane (Boeing?) to fly him.
While Bill Jr. certainly pitched Mulally as a "turnaround specialist" to the Ford Board of Directors, with more tenure and experience than both Marks could turn up in an Ivy League professor's lounge, that may not be what Ford needs in a CEO. As a matter of fact, some might say Ford has already made the "turn," they just need someone to step on the gas.
When you boil it right down, there aren't that many major decisions to be made. The company has been dragging its Firestones on making the changes (as the others have) but may now finally have their scapegoat. The "Way Forward" or more realistically, the way to no longer be going backwards, has always been pretty much the same, fight with unions to the end, cut additional costs through closures, accelerated attrition and trimmed legacy costs, and reinvent the company in a post pickup/SUV dominated business model.
Bringing in Mulally to focus on the manufacturing – supply – labor side of the equation (where he undoubtedly has a proven track record) is like bringing in a renowned goalie coach when you already have Dominick Hasek. It is the product side where Mulally really needs to take off. He does have substantial experience here as well having contributed in the 727, 737, 747, 757 and 767 programs. Heck during his work on the 777 he even came to Dearborn to study Ford's production. As a matter of fact, with the overall size of vehicles like the Ford Expedition approaching those of a Jumbo Jet, the similarities become even more apparent.
Because Bill Ford did not want to be the historical Ford family member at the helm when the wheels, quite literally, came off, he couldn't get out Dodge, I mean Dearborn's, head office quick enough. If the last year has felt like a mad scramble to do what GM does, find a partner, or hire someone like Ghosn or Zietsche, anything to stop then bleeding, this is why. Who knows, maybe someone from outside the industry who isn't attached to the brands or Detroit traditions, is just what the doctor ordered.
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