But after
McNamara exited in 1961, Henry Ford II (Bill’s uncle) gradually assumed a
bigger role in management. He built a high-testosterone culture where rising
stars like successive Ford Presidents Lee Iacocca and Semon “Bunkie” Knudson
were often pitted against one another like gladiators to prove themselves. As
the auto industry’s postwar growth slowed, limiting opportunities for a
swelling cadre of managers, executives turned on one another. They also became
more cautious. “The bureaucracy at Ford grew, and managers took refuge in the
structure when things got tough rather than innovate or try new ideas that
seemed risky,” says Allan Gilmour, a retired chief financial officer at Ford
who has met twice with Mulally, at Bill Ford’s behest, to offer historical
perspective on the company’s woes.