Alan Mulally

Alan Roger Mulally (born August 4, 1945) is an American aerospace engineer and business executive who served as president and chief executive officer of Ford Motor Company from 2006 to 2014. His leadership during the 2008 financial crisis is widely regarded as one of the most successful corporate turnarounds in American business history, as Ford was the only major U.S. Automaker to avoid a government bailout.

Before joining Ford, Mulally spent 37 years at Boeing, where he led the development of the Boeing 777 - the company's most profitable aircraft ever - and served as president and CEO of Boeing Commercial Airplanes from 2001 to 2006. He developed the "Working Together" management system that became central to both Boeing's and Ford's success during his tenure.

Since retiring from Ford, Mulally has served on the boards of Google and Alphabet Inc., and is frequently cited as one of the greatest CEOs in American automotive history.

Early life and education

Alan Roger Mulally was born on August 4, 1945, in Oakland, California. His parents, Charles R. Mulally and Lauraine Lizette (Clark) Mulally, met at a USO dance during World War II. The family moved to his mother's hometown of Lawrence, Kansas, where Mulally was raised.

Growing up in Kansas, Mulally developed an early fascination with aviation and engineering. He was deeply inspired by President John F. Kennedy's 1962 "We Choose to Go to the Moon" speech, later recalling that he jumped up and declared "I'm ready" after hearing it. This moment helped shape his decision to pursue a career in aerospace engineering.

Mulally was a member of Plymouth Congregational Church in Lawrence, where he was mentored by Reverend Dale Turner. He later described studying the minister's influence on the congregation and learning early lessons about leadership and inspiration.

Following his mother's footsteps, Mulally attended the University of Kansas, where he was a member of the Kappa Sigma fraternity. He earned a Bachelor of Science degree in aeronautical and astronautical engineering in 1968, followed by a Master of Science degree in the same field in 1969.

Mulally later earned a Master of Science degree in management from the MIT Sloan School of Management in 1982 as an Alfred P. Sloan Fellow, a prestigious program for mid-career executives.

Boeing career (1969-2006)

Early engineering work (1969-1992)

Mulally joined Boeing immediately after completing his graduate studies in 1969 as an engineer. Over the next two decades, he worked on numerous significant engineering and program-management assignments, contributing to the development of the Boeing 727, 737, 747, 757, 767, 777, and 787 aircraft programs.

A pivotal early assignment was leading the cockpit design team for the Boeing 757/767 project. Under his leadership, the team developed a revolutionary all-digital flight deck - the first in commercial aviation - that enabled a common type rating for pilots on both aircraft. This innovation reduced training costs for airlines and became an industry standard.

Mulally rose through the engineering ranks to become director of engineering for the commercial airplane group, then vice president of engineering.

Boeing 777 development (1992-1994)

In September 1992, Mulally was named vice president and general manager of the Boeing 777 program, overseeing the development of what would become Boeing's most profitable aircraft and the most produced wide-body jet airliner in history.

The 777 was groundbreaking in several ways: it was the first Boeing airliner designed entirely using digital software (CATIA), eliminating the need for a physical mock-up, and the first Boeing aircraft to utilize fly-by-wire controls. The program was completed on time and within budget, a rarity for such ambitious aircraft projects.

Mulally elevated the "Working Together" philosophy first articulated by Boeing president Phil Condit into a comprehensive management system. This approach included all stakeholders - engineers, suppliers, airline customers, and manufacturing teams - in regular reviews of development status, enabling continuous improvement throughout the design process.

The National Aeronautic Association granted Mulally and his team the 1995 Robert J. Collier Trophy for the greatest achievement in aeronautics and astronautics of the year.

Senior leadership (1994-2006)

Following the 777's success, Mulally was named senior vice president of Boeing in 1994. In 1997, he became president of Information, Space & Defense Systems. In 1998, he was named president of Boeing Commercial Airplanes, with CEO duties added in 2001.

As head of Boeing's commercial airplane division, Mulally was largely credited with Boeing's resurgence against Airbus in the mid-2000s. He championed the development of the fuel-efficient Boeing 787 Dreamliner, which helped Boeing recapture market share from its European rival.

For his performance, Aviation Week & Space Technology named Mulally person of the year for 2006.

Despite his success, Mulally was passed over for the position of Boeing CEO in 2005, when the board selected James McNerney instead. This decision led to Mulally's departure from Boeing for Ford.

Ford Motor Company (2006-2014)

Arrival and strategy

On September 5, 2006, Ford Motor Company announced that Mulally would become president and CEO, succeeding William Clay Ford Jr., who would remain as executive chairman. The hiring was recommended by former Ford CEO Donald Petersen, who saw Mulally as the strong outside leader Ford desperately needed.

At the time of Mulally's appointment, Ford was in crisis. The company had just posted its worst loss in more than 14 years - a deficit of $6 billion in two quarters - and its once blue-chip stock had been downgraded to junk bond status. The 2006 annual loss would reach $12.7 billion, one of the worst financial performances in the company's history.

Mulally's arrival was initially met with skepticism. In a widely reported incident, just as Ford was about to announce his selection, Mulally called his Lexus LS430 "the finest car in the world." The comment drew criticism, though Mulally quickly switched to driving Ford vehicles.

In 2007, Mulally introduced the "One Ford" plan, a four-point business strategy aimed at unifying the company under a single global brand. Before his tenure, Ford had operated almost like a collection of regional companies with different strategies, products, and management practices across North America, Europe, and Asia. The plan called for:

1. Aggressively restructuring operations to generate profitability at current demand
2. Accelerating development of new products customers wanted and valued
3. Financing the plan and improving the balance sheet
4. Working together effectively as one global team

Financial crisis and avoiding the bailout

In late 2006, Mulally made a decision that would prove pivotal: he led Ford to borrow $23.6 billion by mortgaging all of the company's assets, including the iconic Blue Oval logo and the Ford name itself. At the time, the move was widely interpreted as a sign of desperation, with critics questioning whether Ford was on the verge of collapse.

Mulally explained his reasoning differently: he intended to use the money "to finance a major overhaul and provide a cushion to protect for a recession or other unexpected event." When the 2008 financial crisis hit two years later, that cushion proved decisive.

As banks tightened lending, consumers pulled back spending, and General Motors and Chrysler careened toward bankruptcy, Ford's liquidity position enabled it to weather the storm. Congress offered all three Detroit automakers government bailouts in late 2008; GM and Chrysler accepted the taxpayer lifeline, but Ford declined.

Mulally nonetheless testified before Congress in support of government assistance for GM and Chrysler, arguing that their collapse would devastate the shared supplier base on which Ford also depended. His congressional testimony, delivered with characteristic directness and optimism, was widely praised for its clarity and honesty.

By 2010, Ford reported annual income of $6.6 billion - its best profit in a decade and a remarkable $19.3 billion turnaround from the 2006 loss.

Leadership style and cultural transformation

Central to Ford's turnaround was Mulally's implementation of the "Working Together" management system he had refined at Boeing. Weekly Business Plan Review (BPR) meetings brought together Ford's top executives to review the status of the company's strategic plan using a color-coded system: green for on-track, yellow for caution, and red for problems requiring attention.

Initially, executives came to meetings showing only green status indicators, afraid to admit problems. The cultural breakthrough came when executive Mark Fields (who would later succeed Mulally as CEO) presented a red status for a vehicle launch delay. Rather than criticizing Fields, Mulally applauded, saying, "Mark, that's great visibility. Who can help Mark with this?" The moment signaled that honest communication about problems would be rewarded, not punished.

Mulally also emphasized what he called "loving them up" - creating an environment where employees felt valued, respected, and appreciated. "When people know they are respected and appreciated, and that their work matters, we have earned their hearts and minds," Mulally explained.

Recognition and retirement

Mulally's transformation of Ford earned him widespread recognition. He was included in the Time 100 list in 2009, with Steve Ballmer writing the entry: "[Mulally] understands the fundamentals of business success as well as any business leader I know."

In 2011, Mulally was named Person of the Year by the Financial Times ArcelorMittal Boldness in Business Awards and CEO of the Year by Chief Executive magazine. He also received an Edison Achievement Award for his commitment to innovation throughout his career.

The Automotive Hall of Fame inducted Mulally in 2014, recognizing his role in saving Ford Motor Company.

Mulally retired from Ford on July 1, 2014, passing the CEO role to Mark Fields, who had been a key ally in implementing the turnaround plan.

Post-Ford career

On July 15, 2014, shortly after retiring from Ford, Mulally was appointed to the board of directors of Google. When Google reorganized as Alphabet Inc. in 2015, Mulally continued serving on the board and joined the company's auditing committee, positions he continues to hold.

Mulally has remained active as a speaker and adviser on leadership and management. In late 2024, new Boeing CEO Kelly Ortberg consulted with Mulally about Boeing's recovery strategy, seeking insight from the executive who had previously led one of the company's most successful eras.

Personal life

Mulally met his wife, Nicki (née Connell), while both were students at the University of Kansas. They married in 1970 and have five children together. Nicki is a former elementary school teacher.

The Mulallys lived near Seattle during his Boeing years and later in the Detroit area during his Ford tenure. Mulally is known for his dedication to family life; he instructed his executive assistant to schedule business appointments around important family events. Throughout their marriage, he and Nicki have maintained a tradition of spending Saturday evenings alone together, usually dining out. Mulally estimated he had missed only about a dozen of these weekly dates in over thirty years of marriage.

Mulally is a private pilot and enjoys tennis, golf, and reading. He is also known for his artistic doodles, which became famous within Boeing. He remains a devout Christian and credits his early church experiences in Kansas with shaping his approach to leadership and service.

In 2012, Mulally was awarded an honorary Doctor of Science degree by the University of Kansas for his contributions to engineering and the transportation industry.

Mulally's net worth is estimated at approximately $300 million.

External links

• Ford Media Center Profile
• Automotive Hall of Fame
• LinkedIn Profile