Ford (F) Should Hire Steve Jobs as CEO
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Okay, maybe not the real Jobs, or even Tim Cook (he seems to be happy at Apple (Nasdaq: AAPL)), but someone who is a bit of an innovator.
Alan Mulally did a good job. He joined Ford (NYSE: F) in September of 2006, when the stock was around $8 per share, meaning that if you invested then, you could cash in your chips for a near-40 percent gain. Considering that General Motors (NYSE: GM) is, well, new, and Toyota (NYSE: TM) stock fell from well over $100 to about $70 now, the comparison speaks for itself.
Mulally and the team brought about great changes with quality, moving Ford's products up the charts even amid the worst financial crisis in a generation, and emerged a stronger, leaner company.
Over the last year, though, Ford has suffered as much as GM and Toyota (and many other companies), as it's Sync system became too complex for the consumer, the bottom fell out of Europe, and overall sales outlook by investors dimmed as comps became tougher.
But Ford probably shouldn't hire from within. Though Mulally's team has probably been "groomed" over the last few years to assume a more responsible role, Mulally himself came from another tough industry in being the boss at Boeing (NYSE: BA). He didn't start in autos, where management typically succumb to some level of "groupthink" at some point.
Ford should probably look to a completely different area for it's next leader. Tap someone from Deere (NYSE: DE) or Caterpillar (NYSE: CAT). How about a tech guy from Intel (Nasdaq: INTC) or International Business Machines (NYSE: IBM)? They surely know global economics, manufacturing processes, outsourcing, and the like.
The point is, Ford needs to keep innovating. Engineers can engineer, and accountants will always keep track, but for continued growth they need direction.
So get them outside their comfort zone, Ford. Hire a leader with fresh vision.
Shares of Ford are slightly higher Wednesday morning.
Alan Mulally did a good job. He joined Ford (NYSE: F) in September of 2006, when the stock was around $8 per share, meaning that if you invested then, you could cash in your chips for a near-40 percent gain. Considering that General Motors (NYSE: GM) is, well, new, and Toyota (NYSE: TM) stock fell from well over $100 to about $70 now, the comparison speaks for itself.
Mulally and the team brought about great changes with quality, moving Ford's products up the charts even amid the worst financial crisis in a generation, and emerged a stronger, leaner company.
Over the last year, though, Ford has suffered as much as GM and Toyota (and many other companies), as it's Sync system became too complex for the consumer, the bottom fell out of Europe, and overall sales outlook by investors dimmed as comps became tougher.
But Ford probably shouldn't hire from within. Though Mulally's team has probably been "groomed" over the last few years to assume a more responsible role, Mulally himself came from another tough industry in being the boss at Boeing (NYSE: BA). He didn't start in autos, where management typically succumb to some level of "groupthink" at some point.
Ford should probably look to a completely different area for it's next leader. Tap someone from Deere (NYSE: DE) or Caterpillar (NYSE: CAT). How about a tech guy from Intel (Nasdaq: INTC) or International Business Machines (NYSE: IBM)? They surely know global economics, manufacturing processes, outsourcing, and the like.
The point is, Ford needs to keep innovating. Engineers can engineer, and accountants will always keep track, but for continued growth they need direction.
So get them outside their comfort zone, Ford. Hire a leader with fresh vision.
Shares of Ford are slightly higher Wednesday morning.
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