My Case For Alan Mulally as UAL CEO

Old Apr 24, 2014, 3:21 pm
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Lightbulb My Case For Alan Mulally as UAL CEO

Given the current status of UAL, it's only prudent to speculate who could make an effective head of the company going forward.

My natural choice is Alan Mulally. He started his career at Boeing, rising to general manager of the 777 program, them head of Boeing's commercial aircraft division. He is currently retiring as CEO of Ford. He is a high-profile, and highly respected figure within the American business establishment, and would make a big splash if he were to head UAL. Furthermore, there's a narrative for him ride on, given UAL's current situation, much as there was at Ford.

A little trip down memory lane will have us remember that there were whispers of Mulally being a potential replacement for UAL's Creighton in 2002.

Originally Posted by The Seattle Times - 2002
http://community.seattletimes.nwsour...slug=mulally07

Boeing Commercial Airplanes Chief Executive Alan Mulally yesterday rejected speculation he is a candidate to become the new CEO of United Airlines.

"I am not pursuing the top job at United Airlines," Mulally said in an internal note to employees obtained by The Seattle Times.

"United is a great customer of ours and a fine airline," he said. "It is important to Boeing that United is successful in its search for a new leader. I'm looking forward to continuing to work with the wonderful people of United as a valued partner as we both strive to restore the health and vibrancy to our industry."

...

The news appeared to be a "trial balloon" aimed at gauging Mulally's interest in leading United.

No one stepped forward to claim responsibility for the initial reports. United and Boeing declined comment.

Russell Reynolds Associates, the Chicago-based company conducting the CEO search for United, refused to even acknowledge the news, citing the need to maintain tight lips in its business.
There's sufficient reason to believe that UAL's board was interested in recruiting Mulally to lead the company through what they had to have known was going to be a Ch.11 filling. His strong respect by labor at Boeing certainly made him an attractive candidate.

He's further had a strong working relationship with UAL in the past, the latter having been the launch customer for the 777, and one of four (UAL, BA, JAL, ANA) that had a close say in the design of the aircraft, an idea conceived and championed by Mulally.

Originally Posted by The Seattle Times

Shelly Jones, managing director in Korn/Ferry International's Seattle office, said that besides the search for a new boss at beleaguered Tyco International, the hunt to replace United's Creighton is the "highest-profile CEO search" going on right now.

"If I were doing (the recruiting for United)," she said, "(Mulally) certainly would be on my list. He's a logical choice. He knows United intimately."
For those who quip that the pay would scare him away:

Originally Posted by The Seattle Times

Mulally already has a high profile and well-paying job at Boeing. If the United position holds any allure, it's for nonfinancial reasons.

"People like Alan oftentimes are motivated by something like this by virtue of challenges of being the guy, the CEO," she said.
His current departure from Ford has left many speculating his next move.

Originally Posted by Business Week
http://www.businessweek.com/news/201...ing-ford-motor

"With what he did at Ford, he’s pretty much the CEO of the decade,” said Brian Clark, a managing partner in Atlanta for Boyden Global Executive Search...

...

Given his aerospace background, an airline would be a good fit, as would high-tech manufacturing companies, Clark said.
In sum, Mulally's history to spearhead progressive ideas (777 development process), terminate bad ones (Ford's Premier automotive group), combined with his "intimate knowledge" of UAL, makes him uniquely qualified to lead the company moving forward into the next decade.

Last edited by tuolumne; Apr 24, 2014 at 3:26 pm
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Old Apr 24, 2014, 4:05 pm
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I think that he would be a trade up for all the stakeholders.
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Old Apr 24, 2014, 4:09 pm
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He's 68 years old. He strengthened Boeing. He saved Ford. He's got to want a beer in the shade with his feet up. And Mrs. Mulally has probably warned him not to start so much as a pet shop.

Last edited by BearX220; Apr 24, 2014 at 4:53 pm Reason: Fix typo
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Old Apr 24, 2014, 4:29 pm
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If they dump Jeff, the best thing will be getting rid of those corny intro videos and all that loud noise when we get on the airplane. Just play the safety video and let the passengers enjoy their flight without a shpeel about wi-fi thats taking a decade to come.
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Old Apr 24, 2014, 4:51 pm
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Originally Posted by BearX220
He's 68 years old. He strengthened Boeing. He saved Ford. He's got to want a beer in the shade with his feet up. And Mrs. Mulally has probably warned him not to start to much as a pet shop.
It's been my experiencee that people like him basically LIVE and THRIVE for these challenges - and most would lose their minds trying to "retire" or put his feet up in the shade with a beer. Their whole life is / was devoted to it and that's all they know... Most never retire - they are more likely put out to pasture....
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Old Apr 24, 2014, 5:59 pm
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Originally Posted by BearX220
And Mrs. Mulally has probably warned him not to start so much as a pet shop.
Yeah, good point. Don't underestimate that.

bt
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Old Apr 24, 2014, 6:40 pm
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After a great career at Boeing then a superstar at Ford who'd want to run an airline?
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Old Apr 24, 2014, 6:58 pm
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There are hundreds if not thousands of people who would make a good CEO for United (and I'm quite confident that few, if any, on FT qualify even though many think they could do a better job).
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Old Apr 24, 2014, 7:49 pm
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Originally Posted by AndyInSaigon
After a great career at Boeing then a superstar at Ford who'd want to run an airline?
Exactly. Quit while you're ahead, etc etc.
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Old Apr 24, 2014, 8:00 pm
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Given his age, I have my doubts he'd take up the challenge of turning around another company. That said, it would be fascinating to see what someone with his skill-set could do with an airline. I'm still not sure if anyone could turn United into a wild success, but he's certainly as qualified as anyone.
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Old Apr 24, 2014, 8:08 pm
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Mulally is a good choice for United for a couple of reasons: Like Gordon, he is ex-Boeing exec who lives and breathes aviation.

More importantly, Mulally at both Boeing and Ford re-engineered two large organizations to focus on the needs of the customer as opposed to accepting a group think mentality that posited internal stakeholders know best about what the customer wants.

At Boeing, he delivered the 777 and ditched the Sonic Cruiser for the 7E7 that became the 787. The 787 of course is the fastest selling airliner in history -- and despite a lot of challenges -- is a pretty awesome piece of plastic. One UA pilot told me, "this thing prints money for UA."

On to Ford, he ditched large cars and trucks well ahead of the financial crisis to retool plants to build smaller cars like the Fiesta. GM and Chrysler were still thinking large car and truck into 2009 whereas Ford had already significantly changed course.

If Boeing had not gone after the 787 market they would have faded away in the commercial airliner business. At Ford they would have followed GM and Chrysler into BK but instead were able to survive the GFC without BK and service the UAW pension and medical plans. Mulally gets a lot of credit for both strategies.

While St. Alan (as the SEA press has dubbed him for the outsourcing debacle that was the 787 program) has his detractors, he understands customers. In his organizations, he seems a step ahead of demand and demonstrates a passion for what his customers need and want. Under his leadership, BCA and Ford were success stories.

The UA BOD would be foolish not to offer him a job if he wanted it. I am sure that SMI/J could line up a teaching position at Yale law if he wanted.....

Last edited by B787938; Apr 24, 2014 at 8:15 pm
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Old Apr 24, 2014, 8:08 pm
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Mullaly occurred to me, also. He would do an incredible job but I doubt he would want to take it on. His family did not move to Detroit and he commuted via private jet. I doubt that would look good to United's shareholders.

That said, he would be an ideal choice.
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Old Apr 24, 2014, 8:20 pm
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I think Mr. Pillows is the obvious choice
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Old Apr 24, 2014, 8:37 pm
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Alan would be a great choice. One of the many talents he offers is the ability to get both customers and employees excited about the product. He has done an excellent job with that concept at Boeing and most recently Ford. Not only do customers and employees need to see light at the end of the tunnel, customers need to not have to work to do business with United. Right now among many other problems, it takes quite a bit of effort to do business with UA. IMHO
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Old Apr 24, 2014, 9:50 pm
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He would be perfect no matter the cost. He is why CEO compensation has grown so high over the years. Too bad other CEO's are bench-marked to this standard.

I'd bet he would love the challenge. In fact, he could work 2 days per week and accomplish twice as much as the current CEO.

Let's make the phone call.
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