What has leadership done to implement strategy, and what challenges remain?

In 2017, Ford Motor Company was facing disruption in the automobile industry and moving in a direction that meant it was becoming more than just an auto company. Reminding investors of the company’s long-term legacy, CEO Mark Fields had pointed to founder Henry Ford and his idea of “democratizing technology” – not just making products for people who could afford luxury vehicles, but using technology to solve problems of mobil¬ity and access, providing not only products but also trans¬portation services that made people’s lives better.

So, although Ford would always sell cars, CEO Fields was making big bets in autonomous technology (self-driving cars), electric vehicles, and other transportation services such as urban mobility solutions via ride-sharing, bike-sharing, and customized interior vehicle experiences serv-ing multiple customer needs. This might have been a bit of a gamble.

Ford, which was one of the world’s most profitable companies until 1999, had been struggling for survival since 2003 and had faced its largest single-year loss in 2006. Although foreign automakers had been aggressively targeting the U.S. market during this time, some of the important reasons for Ford’s decline had been internal: frequent leadership and organizational changes, poor leadership, loss of touch with customers, and a failed diversification plan.

In an attempt to improve the financial condition of the struggling automaker, a new chief executive officer, Alan Mulally, had been selected in September 2006. Mulally, a former executive vice president of the Boeing Company, was expected to use his expertise and leadership skills to rebuild the corporate culture and regain Ford’s ability to compete in a global industry.

The vision was to have a smaller and more profitable Ford. Mulally’s “ONE Ford” message was intended to communicate consistency across all departments and all segments of the company, requiring people to work together as one team, with one plan, and one goal: “an exciting viable Ford delivering profitable growth for all.”

Mulally made structural and procedural changes in the company, especially in top management. He also refocused on the Ford brand by selling off the brands Jaguar, Land Rover, Volvo, and Aston Martin, as well as discontinuing Mercury. Mulally had the full support of the Ford family, including chairman of the board Bill Ford. This confidence appeared well-founded when Ford was able to avoid the bankruptcy scenarios used by GM and Chrysler and posted sales in 2010 that made it the world’s top-earning automaker once again.

By 2013, although problems remained in Europe, Asia, and South America, Ford had seen sales recover in the United States to its best performance ever. This performance confirmed Mulally’s vision and allowed him to retire, hand picking his successor, Mark Fields, to take over in July 2014.

In 2015 Ford Motor Company had the best financial results in years. The year 2016 was almost as profitable, but, going into 2017, Ford was guiding profits lower, primar¬ily because of CEO Fields’ intent to invest in emerging mobility services opportunities.

Fields was facing an industry in disruption: not only were global markets hard to predict but technology shifts and consumer preferences were changing the nature of the whole transportation experience. This would require significant innovation, and an adaptable, nimble organization that could deliver. Could CEO Mark Fields guide Ford to success given these challenges? Henry Ford had the initial vision of dis¬ruption in personal transportation. Would the 21st-century version of Ford Motor Company be as successful?