CEO William Ford

7/31/2019 CEO William Ford

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Running Head: WILLIAM CLAY FORD JR 1

William Clay Ford Jr

Jarod Perry

National University


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WILLIAM CLAY FORD JR 2

WILLIAM CLAY FORD JR

William Ford served as chief executive officer of Ford Motor Co. from October

2001 to September 2006. He was preceded by Jack Nassar and followed by Alan

Mulally from Boeing. One of the most credible CEOs of the company, he was not only

born in Detroit but is the great grandson of Ford founder Henry Ford. He graduated

from Princeton in 1979 and earned an MBA from MIT in 1984. Along with his family

heritage and degrees, William Ford brought environmental concern and employee

consideration to his position. Under his planning and leadership, he unleashed the

worlds first electric SUV hybrid and according to USA Today, changed corporate

culture from individual fear and competition to teamwork (USA Today, 2005).

Aside from being the great grandson of Henry Ford, he is also the great

grandson of Harvey Firestone (USA Today, 2005) who founded the company

responsible for the Firestone tire recall which ended Jack Nassars short tenure as CEO

posted a $5.5 billion loss of revenue in 2001 (Hitt, Ireland, & Hoskinsson, 2009, p. 125).

William Fords first mission was to reestablish the credibility of the brand. He didnt

believe he could do that while giving vehicles away to rental car companies because it

floods the market and drives down the value of all their other cars and trucks (USA

Today, 2005). His risks paid off and the resale value of the Ford Five Hundred is

expected to rise to 47% of the sticker price, more than an 18% jump from its

predecessor the Ford Taurus and on par with rivals Toyota Camry (49%) and Honda

Accord (53%). (USA Today, 2005).


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According to Hitt, Ireland, and Hoskinsson, William Ford led the company to

three straight years of profitability by focusing on improving quality, lowering costs, and

delivering new products that satisfy customers. According to Fords website, William

Ford continues to focus on the future of Ford Motor Company and the strategies that will

move it successfully into the future. He is quoted as saying Innovation is the compass

by which Ford Motor Company sets its direction. We want to have an even bigger

impact in our next 100 years that we did in our first 100 years . (Hitt et al., 2009, p. 125).

Following his mold, the companys current vehicle lineup has received

widespread accolades for unsurpassed quality and safety and innovative fuel-saving

technologies. In 2009 the company launched an aggressive plan to bring a series of

electric and hybrid vehicles to the market (Ford, 2011).

With a plan in place to improve credibility, he needed to improve the short-term

financial outlook of the company. His turnaround plan called for cutting 12,000 hourly

and 5,000 salaried jobs, closing five plants, trimming material costs, discontinuing low-

profit models, and shedding non-automotive businesses (USA Today, 2005). These

negative aspects of managing a company were offset by his commitment to the

employees.

According to USA Today, many workers were more inspired and energetic three

years after he took over as CEO. Knowing the founders great grandson was running

the company helped employees at all levels of the organization cope with the changes

he was implementing. The director of Fords hybrid vehicle programs praises the fact

that Hes in it for the long term. And he calls us his family. (USA Today, 2005).


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According to USA Today, soon after his ascension to CEO, the company

abandoned its system of giving letter grades of A, B, C for employee performance.

Requiring supervisors to give a certain number of Cs created a culture of fear and

intense competition. His new teamwork emphasized system helped change employee

attitudes throughout the company (USA Today, 2005).

William Ford faced many challenging during his term as CEO of Ford Motor

Company. During a critical time in the companys history, he used family credibility and

vision to beat Wall Street analysts financial expectations 12 out of 13 quarters (USA

Today, 2005). Showing his love for the company, William Ford stepped down as CEO in

2006 to share the reigns with Alan Mulally who successfully managed Boeing. William

Ford continues to serve the company as Executive Chairman and retains the most

decision-making power and influence (Hitt et al., 2009, p. 126).

William Ford turned around his company through unsurpassed planning,

leadership, organizing, and controlling. He was the best figurehead and most

appropriate spokesperson for an ailing company in need of recovery. His vision and

innovations marked a change in the history of the Ford Motor Company. Not only has

William Ford improved the companys products, but he has also improved the culture

and perception of the corporation. His groundwork laid the foundation of credibility that

the Ford Motor Company will continue to build on for years to come.


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References

Carty, S. S. (2005, Feb 27). Bill Ford Carries On Family Name With Grace. USA Today.

Retrieved from http://www.usatoday.com/money/autos/2005-02-27-ford-ceo-

usat_x.htm

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2009). Strategic Management:

Competitiveness and Globalization, Concepts and Cases (8th ed.). Mason, OH:

South-Western Cengage Learning

William Clay Ford Jr. (n.d.). Retrieved from the Ford Motor Company website:

http://media.ford.com/article_display.cfm?article_id=93

CEO William Ford

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