Winning Operating Models That Convert Strategy to Results

Resource Origin: Bain and Company, By Marcia Blenko, Eric Garton and Ludovica Mottura

“In 2006, Ford Motor Company needed help. The company’s finances were shaky—it had lost about a point of market share in the US every year for the previous 10 years—and its future was uncertain. But within just a few years, Ford returned to profi tability—without a bailout from the American taxpayer, even after the fi nancial crisis of 2008.

At the heart of this remarkable turnaround, the senior team under new CEO Alan Mulally set a strategic path that included divesting noncore brands, such as Aston Martin and Volvo, and accelerating development of fueleffi cient cars and common vehicle platforms for global markets. Mulally also realized he would need to overhaul Ford’s operating model to execute the new strategy.

The organization moved from regional business units to a global functional model, setting the stage for more effi cient and effective operations. For example, creating a global head of product development allowed Ford to reduce the number of vehicle platforms from roughly 40 to 10. But Ford didn’t just add a box to the org chart. Each regional unit assumed global responsibilities: North America for large pickups, Europe for…”

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