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.

17. Aerospace Engineer
Saved Boeing from Airbus,
9/11 and its unions
Lexus owner
AMERICANICON
Alan Mulally

18. ONE TEAM
AMERICANICON

19. AMERICANICON
ONE GOAL

20. AMERICANICON
ONE FOCUS

21. AMERICANICON

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

27. “ONE FORD” CULTURE
AMERICANICON

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

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

40. AMERICANICON

41. Business Plan Review (BPR)
“The data sets you free.”
AMERICANICON

42. 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