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Running head: Benchmarking The Problem with Ford
Benchmarking the Problem with Ford
Tracy A. Gore
University of Phoenix
The Problem with Ford
For many years Ford Motor Company has experienced losses in profit and market share within the automobile industry. The company board of directors in its pursuit to clearly define the problem recognized the need for change within the company. Current leadership has been unable the turn the company around in the last six years and therefore is deemed to be part of the problem. Realizing that the company needed a leader that could effectively define the companys problems and move to ultimately provide solutions to them, the company appointed Bill Ford as the new chairman and CEO.
“The successful implementation of change is facilitated when your organizations culture, systems, and structure support or reinforce the new visions, objectives and behaviors” OConner & Fiol (2006). The move to appoint a “Ford” to the helm of the ailing company was clearly a strategic plan the company had endorsed to improve moral and prepare the culture of the company for change. In an unprecedented move, Mr. Ford announced that he would not accept compensation for his efforts until the company is profitable (Associated Press, 2005).
The move to replace leadership was a logical first step toward becoming a better company. There are many changes being made at Ford however improvement is slow. In 2002 the company made a 13 percent improvement in overall quality however GM and Chrysler logged improvements in quality of 30 percent and 27 percent respectively Eisenstein