ABSTRACT
This chapter is divided into three parts. In the first part, the problem of organizational failure is introduced. The rate of organizational failure varies between 70% and 90%. Although operations management is used to solve operational problems, dysfunctional internal politics lead to organizational failure. In the second part, a case study is presented. In the 2000s, Ford was in a state of chaos. The internal politics was destroying the organization from the inside. Ford was losing market share, and it almost went bankrupt. In 2006, Alan Mulally was appointed as the new chief executive officer. He solved its internal problems. The company avoided bankruptcy and started gaining market share. The organizational failure literature suggests that what happened at Ford is quite common. The third part compares Mulally’s approach with some of the fundamental principles in Islamic management. In particular, the focus is on the Prophetic Leadership Model. This model describes how senior managers create a corporate culture in which the facts are more important than internal politics.
