Monday, December 11, 2006
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Daniel Howes
At Ford, revolving door still spinning
If the first three months of Alan Mulally's reign are any indication, international operations chief Mark Schulz won't be the last top dog taking early retirement from Ford Motor Co.
The new boss of the Blue Oval is demanding unprecedented accountability from top executives in unprecedented times, a monstrous challenge offering comparatively scant compensation to folks who can do better elsewhere -- and live to tell about it.
"He won't be the last," one Ford exec predicted last week when I asked about the circumstances surrounding the surprise departure of Schulz, a confidant of Bill Ford Jr. He relinquished the CEO's job to Mulally three months ago.
This is a recipe for turmoil: Take Ford's dismal business results in North America, add a less-than-robust product portfolio, throw in a dollop of insular corporate culture and put the mixer in the hand of a new outsider CEO with 35 million reasons to fix things.
The unending exodus
No, Schulz, 54, won't be the last to go. Whatever the actual circumstances of his decision, he's just the latest in a very, very long line. Be it Bill Ford or his predecessor, Jacques Nasser, Ford Motor sets the global industry standard for cashiering top executives, and the exodus is continuing.
In Nasser's world, who did the job depended on whether they overshadowed Jac. In Bill Ford's world, who did the job depended on whether they irritated Bill -- and if they did, they found out from someone other than the boss. In the new world according to Mulally, getting the job done trumps everything -- or else.
Meaning this: In a company whose corporate politics Bill Ford once likened to "czarist Russia," performance now has the premium over politicking, how long an exec has been at Ford or whether his mentor's name is on the building.
That more of Ford's top brass haven't already decided to "self-select," as Mulally calls it, and head for a new gig or comfortable retirement is probably a testament to their toughness, commitment to Ford and admiration for the radical change Mulally is trying to lead.
Ford's future eyed
These are enormously difficult times at Ford. A third wave of buyout offers is going to salaried workers this week. The automaker has engineered the buyouts of nearly half its 75,000-person hourly work force. And to raise cash, Ford has mortgaged its U.S. assets.
Pretty grim, all the way around. And as much as Ford's people need unvarnished "reality," a favorite Mulally word, and need evidence that talk of management "accountability" isn't just talk, they also could use a stiff dose of hope.
With another leader bailing, knowing whether Ford has a future and what it will take to get there would help, too.