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#AmericanIcon
By Bryce G. Hoffman
Senior Strategist, fassforward Consulting Group
&
Author of
American Icon: Alan Mulally and the Fight to Save
Ford Motor Company
Three things you can learn from
FORD’S TURNAROUND
AMERICANICON
Divided into silos and fiefdoms; unable to
take full advantage of its scale
Careerist culture puts personal advancement
or preservation ahead of corporate interests
Focus on making excuses and/or assigning
blame instead of figuring out solutions
Ford Motor Company
2006
AMERICANICON
No clear vision, mission or plan — or a plan
that changes constantly
AMERICANICON
Employees who point out problems and/or
suggest solutions are ignored or marginalized
Reports “tweaked” to support the status quo
or conceal problems
How many of these describe
YOUR COMPANY?
A brief history of
FORD MOTOR COMPANY
AMERICANICON
“I will build a motor car
for the great multitude...
constructed of the best
materials, by the best
men to be hired, after
the simplest designs
that modern
engineering can devise…
so low in price that no
man making a good salary
will be unable to own one
and enjoy with his family
the blessing of hours of
pleasure in God’s great
open spaces.”
– Henry Ford
AMERICANICON
“A generation ago there were a
thousand men to every opportunity,
while today there are a thousand
opportunities to every man.”
– Henry Ford II
AMERICANICON
What
HAPPENED?
AMERICANICON
AMERICANICON
What
HAPPENED?
AMERICANICON
“I frankly don’t see how
we’re going to meet the
foreign competition.”
– Henry Ford II
100%
80
60
40
20
0
Source: Ward’s Auto
‘60 ‘70 ‘80 ‘90 ‘00 ‘10
U.S. Vehicle Sales
MARKET SHARE
AMERICANICON
2003
FORD TURNS 100
Bill Ford in charge
Declining share
Declining sales
Running out of gas
AMERICANICON
2003 2004 2005 2006
Share % 20.8% 19.6% 18.6% 17.5%
15%
16%
17%
18%
19%
20%
21%
22%
U.S. Market Share
Lets do the numbers...
2003 2004 2005 2006
Units Sold 3,476,022 3,319,484 3,153,670 2,900,911
2.6
2.7
2.8
2.9
3.0
3.1
3.2
3.3
3.4
3.5
3.6
Millions
U.S. Light Vehicle Sales
AMERICANICON
2003 2004 2005 2006
Net Income $0.50 $3.49 $2.02 -$12.62
-$14.00
-$12.00
-$10.00
-$8.00
-$6.00
-$4.00
-$2.00
$0.00
$2.00
$4.00
$6.00
$USBillion
Earnings / Losses
2003 2004 2005 2006
Revenues $164.33 $171.65 $177.09 $156.71
$145.00
$150.00
$155.00
$160.00
$165.00
$170.00
$175.00
$180.00
$USBillion
Revenues
Lets do the numbers...
AMERICANICON
AMERICANICON
Bill Ford Jr.
AMERICANICON
William “Bill” Ford, Jr.
Aerospace Engineer
Saved Boeing from Airbus,
9/11 and its unions
Lexus owner
AMERICANICON
Alan Mulally
ONE TEAM
AMERICANICON
AMERICANICON
ONE GOAL
AMERICANICON
ONE FOCUS
AMERICANICON
“We’re not asking for
any federal money.
We’re trying to pull
ourselves up by our
bootstraps and make
it on our own.” AMERICANICON
200
6
200
7
200
8
200
9
201
0
201
1
201
2
201
3
Net Income -$12 -$2. -$14 $2.7 $6.5 $20. $5.6 $7.1
-$16.00
-$14.00
-$12.00
-$10.00
-$8.00
-$6.00
-$4.00
-$2.00
$0.00
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
$USBillion
Earnings / Losses
Lets do the numbers...
AMERICANICON
2006 2007 2008 2009 2010 2011 2012 2013
Revenues $156. $168. $143. $116. $128. $135. $133. $146.
$115.00
$125.00
$135.00
$145.00
$155.00
$165.00
$USBillion
Revenues
Ford (NYSE: F) Shares
AMERICANICON
Three important lessons:
Culture matters
Message discipline
can change culture
Alan Mulally’s Secret
Weapon: the BPR Process
1
2
3
Divided into silos and fiefdoms; unable to
take full advantage of its scale
Careerist culture puts personal advancement
or preservation ahead of corporate interests
Focus on making excuses and/or assigning
blame instead of figuring out solutions
No clear vision, mission or plan
CULTURE MATTERS
FORD - 2006
AMERICANICON
Employees who point out problems and/or
suggest solutions are ignored or marginalized
Reports “tweaked” to support the status quo
or conceal problems
“ONE FORD” CULTURE
AMERICANICON
“Working together
works. It always works.”“ONE FORD” CULTURE
AMERICANICON
“We’re going to merge
with ourselves.”“ONE FORD” CULTURE
AMERICANICON
“Ford has the talent it
needs to save itself”“ONE FORD” CULTURE
AMERICANICON
“We are going to build cars
and trucks that people want
and value”
“ONE FORD” CULTURE
AMERICANICON
“The data set you free.”“ONE FORD” CULTURE
AMERICANICON
MESSAGE DISCIPLINE CAN CHANGE CULTURE
AMERICANICON
WHAT DOES FORD STAND FOR
AMERICANICON
Aggressively restructure to operate profitably at the current demand
and changing model mix
The “ONE FORD” Plan
Accelerate development of new products our customers want and
value
Finance our plan and improve our balance sheet
Work together effectively as one team
AMERICANICON
AMERICANICON
ONE FORD: One Team, One Plan, One Goal
The BPR System – Alan Mulally’s
SECRET WEAPON
AMERICANICON
AMERICANICON
Business Plan Review (BPR)
“The data sets you free.”
AMERICANICON
AMERICANICON
Your Company Name & Logo
AMERICANICON
PRODUCTS, PROJECTS & PROGRAMS: mm/dd/20yy
If you want change your results, start by changing your
culture
Key Takeaways
If you offer your team a clear and compelling vision, they will
surprise you with what they are willing to do to achieve it
Use a system like Alan Mulally’s BPR process to identify
issues before they become problems, drive accountability,
foster teamwork and achieve your strategic goals
AMERICANICON
#AmericanIcon
AMERICANICON
To keep the conversation
going, follow us:
If you want to bring the BPR process in
To your organization, please contact:
Maria@fassforward.com
@brycehoffman
@fassforward
brycehoffman.com
fassforward.com

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Master ford

  • 1. #AmericanIcon By Bryce G. Hoffman Senior Strategist, fassforward Consulting Group & Author of American Icon: Alan Mulally and the Fight to Save Ford Motor Company Three things you can learn from FORD’S TURNAROUND AMERICANICON
  • 2. Divided into silos and fiefdoms; unable to take full advantage of its scale Careerist culture puts personal advancement or preservation ahead of corporate interests Focus on making excuses and/or assigning blame instead of figuring out solutions Ford Motor Company 2006 AMERICANICON
  • 3. No clear vision, mission or plan — or a plan that changes constantly AMERICANICON Employees who point out problems and/or suggest solutions are ignored or marginalized Reports “tweaked” to support the status quo or conceal problems How many of these describe YOUR COMPANY?
  • 4. A brief history of FORD MOTOR COMPANY AMERICANICON
  • 5. “I will build a motor car for the great multitude... constructed of the best materials, by the best men to be hired, after the simplest designs that modern engineering can devise… so low in price that no man making a good salary will be unable to own one and enjoy with his family the blessing of hours of pleasure in God’s great open spaces.” – Henry Ford AMERICANICON
  • 6. “A generation ago there were a thousand men to every opportunity, while today there are a thousand opportunities to every man.” – Henry Ford II AMERICANICON
  • 9. AMERICANICON “I frankly don’t see how we’re going to meet the foreign competition.” – Henry Ford II
  • 10. 100% 80 60 40 20 0 Source: Ward’s Auto ‘60 ‘70 ‘80 ‘90 ‘00 ‘10 U.S. Vehicle Sales MARKET SHARE AMERICANICON
  • 11. 2003 FORD TURNS 100 Bill Ford in charge Declining share Declining sales Running out of gas AMERICANICON
  • 12. 2003 2004 2005 2006 Share % 20.8% 19.6% 18.6% 17.5% 15% 16% 17% 18% 19% 20% 21% 22% U.S. Market Share Lets do the numbers... 2003 2004 2005 2006 Units Sold 3,476,022 3,319,484 3,153,670 2,900,911 2.6 2.7 2.8 2.9 3.0 3.1 3.2 3.3 3.4 3.5 3.6 Millions U.S. Light Vehicle Sales AMERICANICON
  • 13. 2003 2004 2005 2006 Net Income $0.50 $3.49 $2.02 -$12.62 -$14.00 -$12.00 -$10.00 -$8.00 -$6.00 -$4.00 -$2.00 $0.00 $2.00 $4.00 $6.00 $USBillion Earnings / Losses 2003 2004 2005 2006 Revenues $164.33 $171.65 $177.09 $156.71 $145.00 $150.00 $155.00 $160.00 $165.00 $170.00 $175.00 $180.00 $USBillion Revenues Lets do the numbers... AMERICANICON
  • 15. Bill Ford Jr. AMERICANICON William “Bill” Ford, Jr.
  • 16.
  • 17. Aerospace Engineer Saved Boeing from Airbus, 9/11 and its unions Lexus owner AMERICANICON Alan Mulally
  • 22. “We’re not asking for any federal money. We’re trying to pull ourselves up by our bootstraps and make it on our own.” AMERICANICON
  • 23. 200 6 200 7 200 8 200 9 201 0 201 1 201 2 201 3 Net Income -$12 -$2. -$14 $2.7 $6.5 $20. $5.6 $7.1 -$16.00 -$14.00 -$12.00 -$10.00 -$8.00 -$6.00 -$4.00 -$2.00 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $USBillion Earnings / Losses Lets do the numbers... AMERICANICON 2006 2007 2008 2009 2010 2011 2012 2013 Revenues $156. $168. $143. $116. $128. $135. $133. $146. $115.00 $125.00 $135.00 $145.00 $155.00 $165.00 $USBillion Revenues
  • 24. Ford (NYSE: F) Shares
  • 25. AMERICANICON Three important lessons: Culture matters Message discipline can change culture Alan Mulally’s Secret Weapon: the BPR Process 1 2 3
  • 26. Divided into silos and fiefdoms; unable to take full advantage of its scale Careerist culture puts personal advancement or preservation ahead of corporate interests Focus on making excuses and/or assigning blame instead of figuring out solutions No clear vision, mission or plan CULTURE MATTERS FORD - 2006 AMERICANICON Employees who point out problems and/or suggest solutions are ignored or marginalized Reports “tweaked” to support the status quo or conceal problems
  • 28. “Working together works. It always works.”“ONE FORD” CULTURE AMERICANICON
  • 29. “We’re going to merge with ourselves.”“ONE FORD” CULTURE AMERICANICON
  • 30. “Ford has the talent it needs to save itself”“ONE FORD” CULTURE AMERICANICON
  • 31. “We are going to build cars and trucks that people want and value” “ONE FORD” CULTURE AMERICANICON
  • 32. “The data set you free.”“ONE FORD” CULTURE AMERICANICON
  • 33. MESSAGE DISCIPLINE CAN CHANGE CULTURE AMERICANICON
  • 34. WHAT DOES FORD STAND FOR AMERICANICON
  • 35.
  • 36. Aggressively restructure to operate profitably at the current demand and changing model mix The “ONE FORD” Plan Accelerate development of new products our customers want and value Finance our plan and improve our balance sheet Work together effectively as one team AMERICANICON
  • 37. AMERICANICON ONE FORD: One Team, One Plan, One Goal
  • 38. The BPR System – Alan Mulally’s SECRET WEAPON AMERICANICON
  • 39.
  • 41. Business Plan Review (BPR) “The data sets you free.” AMERICANICON
  • 43. Your Company Name & Logo AMERICANICON PRODUCTS, PROJECTS & PROGRAMS: mm/dd/20yy
  • 44. If you want change your results, start by changing your culture Key Takeaways If you offer your team a clear and compelling vision, they will surprise you with what they are willing to do to achieve it Use a system like Alan Mulally’s BPR process to identify issues before they become problems, drive accountability, foster teamwork and achieve your strategic goals AMERICANICON
  • 45. #AmericanIcon AMERICANICON To keep the conversation going, follow us: If you want to bring the BPR process in To your organization, please contact: Maria@fassforward.com @brycehoffman @fassforward brycehoffman.com fassforward.com