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Ford Motor Company Portfolio Management Plan

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Ford Motor Company Portfolio Management Plan

PROJ587 Advanced Program Management

Professor Janet Durgin

Prepared by Jennifer Mitchell

February 23, 2013

Table of Contents

Introduction 3

Strategic Plan 3

Strategic Capacity Plan 4

Portfolio Management Process 5

Portfolio Management Process Flow Chart 7

Project Selection 7

Program Management Plan 8

TGW Trend Chart 9

Area/Sources of Conflict 10

Change Management Plan 10

Resource Utilization Plan 12

References 13


Ford Motor Company is considered a global automotive industry leader. Ford was able to reinvent themselves to be able to stay ahead of the economic downturns. Ford has continually improved their overall profit and recently started paying dividends again. A good portfolio management plan makes all of this possible.

We are going to talk about Ford's strategic plan, strategic capacity plan, the portfolio management process, project selection, program management plan, areas/sources of conflict, change management plan and finally resource utilization plan. First we are going to talk about Ford's strategic plan and their ONE Ford Plan that has helped them get to where they are today.

Strategic Plan

A good strategic plan is important to being successful in any organization. Ford Motor Company went through some years of struggle before they decided to do an overhaul of their strategy. Ford Motor Company's was able to do this through their "ONE" Ford plan. The ONE Ford plan is a four point business plan that consists of the following: aggressively restructure to operate profitably at the current demand and changing model mix, accelerate development of new products our customers want and value, finance our plan and improve our balance sheet, and work together effectively as one team (Ford, 2011). The goal with the ONE Ford plan is create a company with a profitable growth and output such as great products, a strong business, and a better world (Ford, 2011).

Ford Motor Company's ONE Ford Plan is about more than just becoming financially successful it is also about being One Team who is dedicated to One Plan all working towards One Goal (Ford Motor Company Business Plan, 2008). The implementation of this plan enables Ford to realize that change was needed instantly and what areas needed change as well. They began to put their primary focus on Ford rather than the other brands that were in their portfolio such as, Aston Martin and Jaguar. The other brands were taking too much of their focus on the Ford Blue Oval brand which is what Ford based themselves on originally (Ford Motor Company Business Plan, 2008). As a result they sold the majority of the other brands in their portfolio which has allowed them to put the focus back where it is needed. The One Team part of the One Ford Plan involves their employees and the ability to create an open and honest work environment. Making it a place where people want to work and involving employees in decisions and the data that makes Ford successful.

Ford Motor Company is not only concerned about making a better profit but by also being more "green" and making the customer experience even better. Ford is focused on having options for their customers so that they will be able to choose the vehicle that best fits their needs. They are also expanding into new markets, including countries outside the United States, which will increase their sales significantly throughout the next few years. The overall ONE Ford Plan has made a significant difference in the way Ford runs and the amount of success that is available to them in the coming years.

Strategic Capacity Plan

Strategic capacity planning is a very important part of a business. As stated in an article from Management Study Guide (Capacity Planning, n.d.), "the ultimate goal of capacity planning is to be able to meet current and future level of requirements with the least amount of waste in the process". Ford recently implemented a new plan that will enable them to better match up their manufacturing capacity with consumer demand of products (Capacity Utilization, n.d.). In order for Ford to be able to move forward and be successful they have had to make decisions that may have been difficult but also allowed them to become more efficient and more competitive in the automotive industry. We all remember when the economy started a downturn that affected many businesses including the automotive industry. Ford had already begun to make changes to ensure that they would be able to remain successful and it set Ford apart from other automakers.

With this new plan Ford made the decision to close some operations and add to others. They had to look at the areas that were continuing to succeed and also areas that were starting to decline allowing them to make the best possible decisions to make sure that Ford would continue to be successful. Ford made changes to their as manufacturing capacity by making it possible to use the same assembly line to manufacture different models of vehicles (Capacity Utilization, n.d.). This made them more flexible and able to adjust to the different needs of customers as they change over the years. Strategic capacity planning doesn't end here though. For Ford to remain successful they may have to continually make changes to ensure that they are utilizing their resources in the best way possible with the least amount of waste.

Portfolio Management Process

The portfolio management process has several steps or parts to the process. The idea behind portfolio management is to choose projects that are beneficial to the overall strategy of the organization. According to The Standard for Portfolio Management (2006), there are seven portfolio management processes. These processes are the following:

1.) Identification

2.) Categorization

3.) Evaluation

4.) Selection

5.) Prioritization



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