Ford’s Hackett leaves legacy of upheaval, uprighting, and upward trajectory

Ford Motor Co. has announced that Jim Hackett (left), who has led the company since 2017, plans to retire. Jim Farley (right) has been named the new president/CEO and will join the board of directors effective Oct. 1. Photo provided

In the press conference Tuesday, Aug. 4, in which Ford Motor Co. announced that CEO Jim Hackett is retiring and COO Jim Farley would assume the CEO role Oct. 1, the first question from a reporter was to poke at Ford’s flailing stock value. With Hackett on the call, he asked Farley, “I know your two predecessors tried and failed to increase the stock price. Will you be the one to raise it?”

Ouch. No bold move goes unpunished

Listen to the announcement (or download here):

As the saying goes, the stock market is not the economy. Likewise, a company’s stock valuation is not equivalent to its composite value. Certainly, Ford’s share price is not a bellwether of its future nor a true picture of Hackett’s contributions and legacy.

Transformational Leadership Ushers in Radical Change

In the press conference, Ford Executive Chairman and founder’s great-grandson Bill Ford said, “I hired Jim Hackett to modernize the company and to begin the transformation that would radically change our company.” Modernize and radically transform the company he did. Major changes and upheaval transpired under his leadership.

Eyeing the downward demand of passenger vehicles in favor of SUVs, he led the cancellation of passenger vehicle production within the U.S., except for the Mustang.

Ford has already stopped making the Fiesta, Focus, and Taurus for the domestic market, and the last Fusion was sent down the line in Hermosillo, Mexico, on July 31. Production of its Lincoln MKZ is also ending.

Ford stepped up SUV production and introduced the reinvented Bronco, which many say will set rival Jeep on its heels.

Not to abandon his sustainability stripes, Hackett jump-started the automaker’s initiatives into electric vehicles with the Mustang Mach-E, the all-electric F-150, and with plans for more.

Partnerships and alliances with VW, Mahindra, and Rivian were forged to galvanize Ford’s leadership in the autonomous, connected, and electric vehicle space.

This happened all in three years, the same number of years for a typical auto development cycle.

Steeling Steelcase

As Steelcase CEO, Hackett reawakened a sleeping giant and turned it around with renewed exuberance and heightened profits.

I had the pleasure of interviewing Jim Hackett many years ago when he was CEO of Steelcase. He sat humbly with me at a café-style booth that was among many seating arrangements at Steelcase’s headquarters that served as “lab experiments.”

Rarely does this crusty editor feel awed. I was awed. In the 10 minutes I had to speak with him, it was apparent that he had profound insights into the consumer experience and innate, unparalleled leadership qualities.

When I learned that he was selected in 2017 to head up Ford, I knew that he would bring his fresh perspective, keen insights, and survivor instincts that would propel Ford forward.

No Warmth From Wall Street

Ford’s stock prices have, admittedly, declined significantly during Hackett’s tenure--the lowest in a decade. That’s not unexpected for a skittish stock market that doesn’t like sudden moves and big changes. And as with other automakers, COVID-19 took a big bite out of the bottom line, leaving losses and loans in its wake.

So, Hackett took hits for the transformations he brought about. He’s all right with that. Having been a center in college football, he knows how to take the hits after snapping the play.

“I knew this would test the patience of our stakeholders. I was OK with that because I had done this once before and I saw how the narrative plays out,” Hackett said.

Wind in Sails

What Hackett accomplished in three short years was to drop unprofitable products, reinvent others; forge healthy alliances; and set a new, bolder course for the 117-year-old institution. As he hands over the keys to Farley, Hackett has positioned him well to steer the company to a wildly popular fleet, healthy balance sheet, stock profitability, and momentum into the next quarter-century.

Too bad Hackett, now 65, is leaving before he will be able to fully witness the fruits of his labors.