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Should Ford's CEO be a car guy?


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The recent hiring of Alan Mulally at Ford raises the question of whether an auto company CEO should be a car guy. Much of the press and many enthusiasts think this is a big deal. I disagree. The CEO shouldn't be making product decisions. They should instead be setting up an organization where people much closer to the product and the market can make product decisions. What's more, a car guy might be more inclined to overrule the product teams that really know the market and product.

 

My full treatment:

 

http://www.truedelta.com/pieces/mulally.php

 

So, what do you guys think?

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Mr. Karesh - from the thread title, O got scared I would be disappointed in you - but once again, yo surprised me with a well trhought out paper ..

 

thanks

 

Igor

 

Thanks.

 

The paradox is that a non-car guy CEO might be more likely to let car guys lower in the organization do what should be done. He doesn't feel the need to be an expert on product, so he can let the real experts be the experts. Just added a sentence to this effect to the piece, because otherwise people might wrongly think I believe no one in product development should be a car guy. Instead, I'm just talking about the CEO.

Edited by mkaresh
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The recent hiring of Alan Mulally at Ford raises the question of whether an auto company CEO should be a car guy. Much of the press and many enthusiasts think this is a big deal. I disagree. The CEO shouldn't be making product decisions. They should instead be setting up an organization where people much closer to the product and the market can make product decisions. What's more, a car guy might be more inclined to overrule the product teams that really know the market and product.

 

My full treatment:

 

http://www.truedelta.com/pieces/mulally.php

 

So, what do you guys think?

 

 

I think while what you say sounds good... people buy more Hondas and Toyotas than Ford. So even if you believe that everything must be committee style and lack good sense in favor of the bottom line... the vast majority of people in the US disagree with their pocketbook...

 

Funny how reality and theory diverge sometimes...

 

 

Basically... "Do what you have always done... and you will get what you have always got"

 

If they do not change, their slide will not end.

Edited by shrewd
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The short version is that he may not be a "car guy", but that doesn't mean he's an opponent of cool cars. On the contrary, he may embrace the simple truth that competitive products with desirable features, styling, and value are likely to move faster than other products.

 

Being introduced to the "car guys" in SVT might also be a real eye-opener for him, assuming he's open-minded.

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'Car guys' and the car guy myth tend to elevate the man above the organization.

 

Bad organizational structures stifle more creativity than they enable.

 

I totally agree. Ford's CEO needs to be an 'organization' guy, not a 'car' guy.

 

Mulally's "product" is Ford Motor Company.

Let's hope you are right.
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I'm not sure it matters whether or not the CEO is a car guy. The CEO's responsibility is well beyond product matters, although at Ford there were successful car guys at the top.

 

Caldwell - Non-Carguy - Successful

Peterson - Carguy - Successful

Poling - Non-Carguy - Successful

Trotman - Carguy - Mostly not successful

Nasser - Non-Carguy - Not successful

Billy - Carguy - Not successful

 

Every combination of success and automotive interest can be found from the prior CEOs.

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