Alan Mulally

Alan Mulally
Mulally in 2013
Alan Mulally
Born	Alan Roger Mulally 4 8, 1945
Birthplace	Oakland, California, U.S.
Nationality	American
Occupation	Aerospace engineer, business executive
Known for	CEO of Ford Motor Company (2006–2014), executive at Boeing Commercial Airplanes
Education	Massachusetts Institute of Technology (M.S.), University of Kansas (B.S., M.S.)
Spouse(s)	Nicki Mulally
Children	5
Awards	Chief Executive of the Year (2011), International Air & Space Hall of Fame (2015)

Alan Roger Mulally (born August 4, 1945) is an American aerospace engineer and business executive who served as president and chief executive officer of the Ford Motor Company from September 2006 to July 2014. Before joining Ford, Mulally spent 37 years at The Boeing Company, where he rose to lead Boeing Commercial Airplanes and oversaw the development of several major aircraft programs, including the Boeing 777. His career is defined by two remarkable chapters in American industry: his role in Boeing's resurgence against Airbus in the commercial aviation market during the early 2000s, and his leadership of Ford through the Great Recession, during which Ford was the only one of Detroit's "Big Three" automakers that did not file for bankruptcy or accept a federal bailout. Mulally's management philosophy, which he termed "Working Together," emphasized transparency, accountability, and a unified corporate culture, principles he applied at both Boeing and Ford. His turnaround of Ford became the subject of the 2012 book American Icon: Alan Mulally and the Fight to Save Ford Motor Company by Bryce G. Hoffman. Following his retirement from Ford, Mulally served on the Board of Directors of Google from 2014 until his departure by 2024.

Early Life

Alan Roger Mulally was born on August 4, 1945, in Oakland, California. He grew up in Lawrence, Kansas, where his mother, Lauraine Mulally, was a longtime resident of the community. Mulally has spoken publicly about his upbringing and the values instilled in him during his formative years in Kansas. In interviews, he has described learning the importance of service and working together from an early age, principles that would come to define his leadership approach throughout his career in both the aerospace and automotive industries.

Growing up in the heartland of the United States, Mulally developed an early interest in engineering and aviation. His academic aptitude led him to pursue studies at the University of Kansas, located in his hometown of Lawrence, where he would begin the technical education that prepared him for a career spanning nearly five decades in American industry.

Education

Mulally earned his bachelor of science degree in aeronautical and astronautical engineering from the University of Kansas. He subsequently obtained a master of science degree in aeronautical and astronautical engineering, also from the University of Kansas. Mulally later pursued advanced graduate studies at the Massachusetts Institute of Technology (MIT), where he earned a master's degree in management as an Alfred P. Sloan Fellow. MIT has recognized Mulally among notable individuals associated with the institution. His dual expertise in engineering and management would prove instrumental in his ability to lead large, complex organizations through periods of significant transformation.

Career

Boeing (1969–2006)

Mulally began his professional career at The Boeing Company in 1969, joining as an engineer. Over the course of 37 years, he rose through the ranks of the company, contributing to the development and engineering of numerous commercial aircraft programs. His engineering work at Boeing encompassed contributions to a range of aircraft platforms, and he became known within the company for his technical expertise and leadership capabilities.

One of Mulally's most significant accomplishments at Boeing was his role in the development of the Boeing 777, one of the most commercially successful wide-body aircraft in aviation history. The 777 program was notable not only for the aircraft it produced but also for the collaborative development process Mulally championed, which brought together engineers, suppliers, and airline customers in a more integrated approach to aircraft design and manufacturing.

Mulally eventually rose to the position of president and chief executive officer of Boeing Commercial Airplanes, the division responsible for the company's commercial aircraft business. In this role, he oversaw Boeing's competitive response to Airbus, which had been gaining market share in the global commercial aviation market. Under Mulally's leadership, Boeing Commercial Airplanes experienced a resurgence, reclaiming competitive ground against its European rival during the mid-2000s.

Despite his success at Boeing Commercial Airplanes, Mulally was passed over for the position of CEO of The Boeing Company. This decision led Mulally to consider opportunities outside of Boeing, ultimately opening the door to what would become the defining chapter of his career.

Appointment as Ford CEO (2006)

On September 5, 2006, Ford Motor Company announced that Alan Mulally would join the company as its new president and chief executive officer, succeeding Bill Ford Jr., the great-grandson of company founder Henry Ford, who had been serving as CEO since 2001. The appointment of an outsider to lead Ford was a significant departure for the family-controlled automaker, and it signaled the severity of the challenges the company faced. Bill Ford remained as executive chairman of the board.

Mulally's arrival at Ford was met with both curiosity and skepticism within the automotive industry. He had no prior experience in the automobile business, having spent his entire career in aerospace. However, Ford's leadership believed that Mulally's experience managing large-scale engineering and manufacturing operations at Boeing, combined with his management philosophy, made him the right candidate to lead the company through an increasingly difficult period.

At the time of Mulally's appointment, Ford was losing billions of dollars annually and faced declining market share, an aging product lineup, and a corporate culture that many observers described as siloed and dysfunctional. The company's stock price had fallen significantly, and questions about Ford's long-term viability were becoming more frequent.

Ford Turnaround Strategy

Upon taking the helm at Ford, Mulally implemented a comprehensive restructuring plan that he called "One Ford." The strategy aimed to unify Ford's global operations, which had previously operated as semi-autonomous regional entities with different vehicle platforms, management structures, and corporate cultures. Under "One Ford," the company would consolidate its vehicle platforms, streamline its brand portfolio, and operate as a single, cohesive global enterprise.

One of Mulally's earliest and most consequential decisions was to mortgage virtually all of Ford's assets—including its factories, intellectual property, and the iconic Ford blue oval logo—to secure a $23.6 billion line of credit in late 2006. This decision, made before the full onset of the financial crisis, provided Ford with the liquidity it needed to fund its restructuring without government assistance.

As part of the restructuring, Mulally oversaw the divestiture of several brands that Ford had acquired during the 1990s. The company sold Jaguar and Land Rover to Tata Motors of India. Mulally stated publicly that Ford had no regrets about selling these luxury brands, as the divestitures allowed the company to focus its resources on its core Ford and Lincoln brands. Ford also disposed of Aston Martin and eventually discontinued the Mercury brand.

Navigating the Great Recession

The Great Recession of 2008–2009 presented the most severe test of Mulally's leadership at Ford. As credit markets froze and consumer spending collapsed, the American automotive industry faced an existential crisis. General Motors and Chrysler both filed for bankruptcy and received billions of dollars in federal bailout funds through the Troubled Asset Relief Program (TARP).

Ford, largely because of the credit line Mulally had secured in 2006, was able to decline government bailout funds. This decision carried significant symbolic weight, as it allowed Ford to market itself as the American automaker that had survived on its own. When Mulally and the CEOs of GM and Chrysler were called to testify before Congress in December 2008 about the state of the auto industry, Mulally drew attention by driving a Ford Escape Hybrid from Michigan to Washington, D.C., rather than flying in a corporate jet, as the other executives had done on a prior trip.

Under Mulally's leadership during this period, Ford implemented aggressive cost-cutting measures, renegotiated labor contracts with the United Auto Workers, and accelerated the development of more fuel-efficient vehicles. The company also invested in new technologies, including hybrid and electric vehicle platforms, to position itself for changing consumer preferences and tightening fuel economy regulations.

Ford returned to profitability in 2009 and continued to post profits in subsequent years. By 2010, the company was reporting strong financial results, and analysts noted the possibility of record earnings.

"Working Together" Management System

Central to Mulally's leadership at both Boeing and Ford was his management framework known as "Working Together." This system emphasized a set of principles including transparency, data-driven decision-making, and mutual accountability among the leadership team.

A key component of the "Working Together" system was the weekly Business Plan Review (BPR), a meeting in which Ford's senior executives reported on the status of their operations using a color-coded system: green for on track, yellow for areas of concern, and red for serious problems. Mulally has recounted that when he first introduced these meetings at Ford, all of the charts presented by executives were coded green—despite the fact that the company was projected to lose $17 billion that year. Mulally encouraged his team to be honest about the problems they were facing, and when one executive, Mark Fields, was the first to present a chart coded red, Mulally reportedly applauded him. This moment has been cited as a turning point in Ford's corporate culture, as it established that transparency about problems would be rewarded rather than punished.

Mulally has described the "Working Together" management system as being stakeholder-centered, emphasizing the importance of serving all stakeholders—including employees, customers, suppliers, shareholders, and the communities in which the company operates. He has also spoken about the role of respect, trust, and what he has termed "love" in organizational leadership, a concept he has continued to discuss in speeches and interviews following his retirement.

The "Working Together" system was also applied as a framework for strategic alignment. Mulally insisted that all decisions be evaluated against a clearly articulated strategic plan and that the entire leadership team share responsibility for the company's overall performance, rather than focusing solely on their individual divisions.

Compensation

Mulally's compensation as CEO of Ford attracted public attention, particularly during the period when the company was undergoing restructuring and the broader auto industry was receiving government assistance. His total compensation package included salary, bonuses, and stock awards, details of which were disclosed in Ford's annual proxy filings. The topic of executive compensation at Ford during this period was the subject of discussion in the financial press, with some commentary noting the contrast between the company's cost-cutting measures and the size of its CEO's pay package.

Retirement from Ford and Board Service

Mulally retired as president and CEO of Ford Motor Company on July 1, 2014. He was succeeded by Mark Fields, the executive who had famously been the first to present a red-coded chart during the early BPR meetings. On July 15, 2014, Mulally was appointed to the Board of Directors of Google (later Alphabet Inc.). He served in this capacity for several years before departing the board by 2024.

Personal Life

Alan Mulally is married to Nicki Mulally. The couple has five children. The Mulally family has maintained a relatively private life despite Alan's public profile as a major corporate leader.

Mulally has spoken in interviews about the influence of his family and upbringing on his personal values and leadership philosophy. He has attributed his emphasis on respect, collaboration, and service to the lessons he learned growing up in Kansas. Since retiring from Ford, Mulally has remained active as a speaker and advisor on topics related to leadership and management, frequently discussing the principles of his "Working Together" framework.

Recognition

Mulally has received numerous awards and honors throughout his career for his contributions to the aerospace and automotive industries.

In 2011, he was named Chief Executive magazine's CEO of the Year, in recognition of his leadership of Ford's turnaround.

In 2015, Mulally was inducted into the International Air & Space Hall of Fame at the San Diego Air & Space Museum, an honor recognizing his decades of contributions to the aerospace industry during his tenure at Boeing.

MIT has included Mulally on lists recognizing notable alumni and affiliates of the institution, acknowledging his contributions to engineering and management.

Mulally's leadership at Ford has been the subject of significant media coverage, academic study, and multiple books. American Icon: Alan Mulally and the Fight to Save Ford Motor Company, authored by journalist Bryce G. Hoffman and published in 2012, provides a detailed account of Mulally's strategies and the corporate culture changes he implemented at Ford. The book drew on extensive interviews with Mulally and other Ford executives and has been cited in business schools and leadership courses.

In the years following his retirement, Mulally has continued to be referenced in business media as an exemplar of effective crisis leadership. A 2022 Forbes article discussed his "Working Together" management system as a model for contemporary corporate leadership. A 2021 Forbes profile by Bryce Hoffman discussed Mulally's perspective on navigating difficult times through collaboration.

As of 2025, Mulally's name continues to surface in discussions of corporate leadership and transparency. A Detroit Free Press opinion column in August 2025 cited Mulally's tenure at Ford as an example of effective leadership during challenging times.

Legacy

Alan Mulally's legacy is rooted in two of the most significant corporate turnarounds in modern American industrial history. At Boeing, he oversaw the development of the 777 program and led Boeing Commercial Airplanes during a period of competitive recovery against Airbus. At Ford, he implemented a restructuring that allowed the company to avoid bankruptcy and government bailout during the worst economic downturn since the Great Depression.

The "One Ford" strategy that Mulally implemented became a case study in corporate restructuring and global operational integration. By consolidating vehicle platforms and streamlining the brand portfolio, Ford was able to reduce costs, improve quality, and develop vehicles that could be sold in multiple global markets with minimal modification. This approach influenced how other multinational corporations thought about global operations and brand management.

Mulally's "Working Together" management system has been studied and discussed in business schools, leadership seminars, and academic journals. The emphasis on transparency—particularly the color-coded BPR meetings—became one of the most frequently cited examples of how leaders can change organizational culture by creating environments where honest communication is rewarded. A 2016 analysis by the Brookings Institution examined how Mulally's leadership embodied principles of effective management, including communication, collaboration, and conviction.

The fact that Ford was the only one of the three major American automakers to survive the Great Recession without a bankruptcy filing or government bailout remains a central element of Mulally's legacy. This achievement is frequently cited in discussions about crisis management, strategic planning, and the importance of leadership in guiding large organizations through periods of extreme uncertainty.