Lessons on Leading Change from an American Icon Webinar

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Bryce G. Hoffman, author of the best-selling book “American Icon: Alan Mulally and the Fight to Save Ford Motor Company,” lead a free webinar on three key lessons from the Ford turnaround that you can use to change your company’s culture, drive accountability and foster teamwork. Under Mulally’s leadership, the famed automaker went from the brink of bankruptcy to record profits in just two years. By listening in, learn how your organization can use the same principles to meet its goals.

- The Importance of Culture
- How to Use Message Discipline
- The Business Progress Review -
A Powerful Tool for Leading Change

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Lessons on Leading Change from an American Icon Webinar

  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
  7. What HAPPENED? AMERICANICON
  8. AMERICANICON What HAPPENED?
  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
  14. AMERICANICON
  15. Bill Ford Jr. AMERICANICON William “Bill” Ford, Jr.
  16. Aerospace Engineer Saved Boeing from Airbus, 9/11 and its unions Lexus owner AMERICANICON Alan Mulally
  17. ONE TEAM AMERICANICON
  18. AMERICANICON ONE GOAL
  19. AMERICANICON ONE FOCUS
  20. AMERICANICON
  21. “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
  22. 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
  23. Ford (NYSE: F) Shares
  24. AMERICANICON Three important lessons: Culture matters Message discipline can change culture Alan Mulally’s Secret Weapon: the BPR Process 1 2 3
  25. 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
  26. “ONE FORD” CULTURE AMERICANICON
  27. “Working together works. It always works.”“ONE FORD” CULTURE AMERICANICON
  28. “We’re going to merge with ourselves.”“ONE FORD” CULTURE AMERICANICON
  29. “Ford has the talent it needs to save itself”“ONE FORD” CULTURE AMERICANICON
  30. “We are going to build cars and trucks that people want and value” “ONE FORD” CULTURE AMERICANICON
  31. “The data set you free.”“ONE FORD” CULTURE AMERICANICON
  32. MESSAGE DISCIPLINE CAN CHANGE CULTURE AMERICANICON
  33. WHAT DOES FORD STAND FOR AMERICANICON
  34. 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
  35. AMERICANICON ONE FORD: One Team, One Plan, One Goal
  36. The BPR System – Alan Mulally’s SECRET WEAPON AMERICANICON
  37. AMERICANICON
  38. Business Plan Review (BPR) “The data sets you free.” AMERICANICON
  39. AMERICANICON
  40. Your Company Name & Logo AMERICANICON PRODUCTS, PROJECTS & PROGRAMS: mm/dd/20yy
  41. 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
  42. #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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