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Home / Essays / Organizational Leadership

Organizational Leadership

Abstract

Leadership is of paramount importance to the success of an organization. Effective leaders will propel an organization to achieve its goals and vision. Such good leadership calls for goal setting and good communication strategies.

Introduction

Role of leadership and how it can impact organizational performance

Allan Mulally, the CEO of Ford Motor Company, has been rated as one of the most effective leaders after pushing Ford to popularity and making it the most preferred company in the motor industry. This has come through a combined set of virtues essential for the success of an organization. In the following write-up, I will discuss Mulally's strategy to effective leadership as the CEO of one of the most successful organizations in the industry.

Effective leadership is the vanguard of most organizations as exemplified by strategic planning. Dimensions of an organization such as culture, leadership, processes and structure are devoted to the impact of strategic planning of a particular organization. Improving the competitive strategy ought to be a major focus of an organization amid the dynamic environment of the business world. Strategy rises beyond operational improvement. Competitive strategy, therefore, utilizes analysis of the structure of an industry and its competitors so as to identify an optimal position. Moreover, the competitive strategy involves consistent improvement through strategic planning. Accordingly, organizational performance transpires a highly regarded relationship between leadership, business strategy, and innovation.

 

The effectiveness of a company's leadership can be a measure of its performance. This includes the effectiveness with which the leadership does communicate and translate the strategy and vision of the organization to its members. The imperative is motivation as to how good leadership enunciates the performance of the organization through the needs of others and inspiring them to perform. Leadership and organizational performance relationship can, therefore, be theorized that the leaders assist in shaping the organizational culture and hence performance. The leadership can, therefore, substantiate successful performance of the organization through their strategic planning and focus on resources within a challenging environment to meet the demand of the organization and eventually fulfill the expectations of the stakeholders.

Mulally's leadership style at Ford Motor Company

Leadership, which is transformational, begins with the development of a vision that will appeal and convert followers in the near future. Such leadership seeks to transform the organization overtly with an implicit promise to the followers that likewise, they will get transformed in some way. The leaders are the product of the transformation, in some respect. Allan Mulally, Ford Motor Company CEO, employ transformational leadership. He appealed to the Company as a leader with a tenacious and zeal agenda. Transformational leadership involves the implementation of new ideas. Individuals such as Mulally, continually change themselves; they stay adaptable and flexible; continually improving those around them. They encourage followers through acting as role models, stimulating intellectually, inspiring, and giving individualized consideration for goals and needs.

Allan Mulally has been seen to encourage participation for all, managers and executives and clearly conveys the company's vision during his weekly staff meetings. In a vocalized commitment to service to each division, Mulally's agenda illustrates trust and belief in others that unite the organization. Such transformational leadership empowers people to exceed their previous levels of accomplishment. Such a dynamic and an innovative leadership style motivates and challenges the entire organization. Allan Mulally puts energy and passion into everything from his earlier role with Boeing to his current stand at Ford. Such type of leadership also cares about people and sincerely wants them to succeed. The result is organizational, group and individual achievement beyond expectations.

How goal-setting helped Ford improve its performance

As an organization, to have well-defined missions and visions does not mean anything. To be able to motivate and energize employees to fulfill the corporate objectives to achieve the missions and visions is what matters. Ford Motor was the only big company in auto manufacturing, which never pursued government bailout. To choose to move in a certain direction as an organization, the executive ought to have developed a mental image of the possible and the most desirable future of the organization. Such an image that is perceived as a vision can be as precise as a mission or goal statement or as vague as a dream. Managers and executives should live the vision, as they execute the objectives to achieve those goals, and constantly communicate the objectives to achieve those goals with the employees. A goal can be termed as a long-range endeavor for a specified period, and must be realistic and specific. Long-range goals set through strategic planning get translated into objectives and activities that will make sure the goal gets reached through operational planning. The major result of strategic planning, prior to gathering the necessary information, involves the setting of goals based on its mission and vision statement. The Ford Motor Company's vision is simple yet powerful; "to become the world's leading Consumer Company for automotive products and services."

Assessment of Mulally's element of communication

When he entered as CEO of Ford Motor Company, Allan Mulally demonstrated organizational innovation, which can be defined as the procedure of transforming the organization through the introduction of different means of administration and production. As he did with Boeing, through conveying his vision and ideas, Mulally exhibited his innovation, which composed of adoption of ideas from outside Ford. His message includes planning, initiating, executing, selection and implementing objectives set by the administration. With a focus on fewer products to produce improvement, sustainability and service innovation involving the introduction of a new service or one that is improved substantially, conveyed his characteristics for the agenda in the goals achievement of a new and improved Ford Company. The success of an innovation is linked to a forecast on the market of customers' wants and needs as well as management of the innovation process that is effective. Mulally's focus for Ford Company is, "One Ford- One Team, One plan, One goal" Open communication and executive management are among his high regards, in addition to his charismatic mannerism. He portrayed an agenda to satisfy through service, not only the customers but employees too, increase profits, market share and communication is at the top. Communication is a key attribute to a successful leader.

Evaluation of Mulally's leadership style

That Allan Mullaly's leadership style is effective has been proven by results. He has emerged as innovative with the process which addresses various issues within the organization to make Ford a thriving organization through successful development and implementation. His responsibilities in management include lowering the sense of risk; managing and the training of staff; managing customer interface, and keeping Ford'an executive team engaged. Innovation and collaboration are the foundation of Ford's work in aspects ranging human rights to electric vehicles in the supply chain. Allan has proven the adaptability of his style of leadership to fuse with situational setbacks in the economic turmoil as Ford Motor Company has a proud heritage of improving. Highlighting how successful this tactic can be, Mulally has cemented and stabilized his reputation as among of the great leaders in the motor industry; what he says is well worth paying attention to, after all, rarely does one leader play such a major role in two of the world's biggest industries. Being the president of Boeing's commercial-aircraft division, he revamped the organization's product synthesis and embraced and supported digital technology; Boeing was also made a model for global manufacturing by him as he guided the company through the 9/11 aftermath, that almost crippled the aerospace industry Moving forward to 2010 and he is just as successful tackling the challenges facing the auto industry and Ford Motor Company through the Great Recession . Communication is the key to any successful leader. Everyone has to be aware of the plan, its status, and areas that require special attention. It is essential that leaders model that behavior they expect from others. Currently, being a leader is challenging, turbulence will be the new norm, whether it is a financial crisis, geographic crisis or environmental, but if one can learn from the experience of a leader such as Alan Mulally, an organization will do just fine and can rise to the top.

Conclusion

Mulally's leadership style is effective. Goal setting, effective communication of organizations vision and strategy are among his style and have seen him drive Boeing and Ford Companies to be the best worldwide.