Navigating severe challenges requires strong, courageous, and authentic leaders. That’s what
Alan Mulally offered at Ford Motor....
Mullaly... set up mandatory weekly management meetings he called the business process review (BPR) for his top executives to get to the root cause of Ford’s long-standing problems. He quickly discovered that Ford’s challenges went way beyond financial losses: the culture at Ford was broken and in need of massive transformation. He observed, “Ford had been going out of business for 40 years, and no one would face that reality.”
In response, Mulally developed One Ford, an initiative based on “focus, teamwork and a single global approach, aligning employee efforts toward a common definition of success.” He started by redesigning internal meetings. As described in Bryce Hoffman’s
American Icon, meetings had become “arenas for mortal combat” in which employees practiced self-preservation, trying to identify flaws in each other’s plans instead of recommending solutions to their problems.
Mulally reframed these meetings from negative to positive, fostering a safe environment where people had open and honest discussions without fear of blame. Instead of attacking executives for the issues they brought to the table, Mulally encouraged collaborative approaches to problem solving. He noted, “If you have a common purpose and an environment in which people want to help others succeed, the problems will be fixed quickly.”
Mulally introduced a “traffic light” system to weekly BPRs in which executives indicated progress on key initiatives as green, yellow, or red. After four meetings in which all programs were labelled green, Mulally confronted his team, “We are going to lose $18 billion this year, so is there anything that’s not going well?” His question was met with stony silence.
The following week, Ford’s North American President,
Mark Fields, showed a red indicator that a new vehicle launch would be delayed. Other executives assumed Fields would be fired over the bad news. Instead, Mulally began clapping and said, “Mark, that is great visibility.” He asked the group, “What can we do to help Mark out?” As he frequently told his leaders, “You have a problem; you are not the problem.”
Mulally describes his leadership style as “positive leadership—conveying the idea that there is always a way forward.” He says a critical part of positive leadership is “reinforcing the idea that everyone is included. When people feel accountable and included, it is more fun. It is just more rewarding to do things in a supportive environment.”
With determination and positive leadership, Mulally created a culture of effective problem solving and teamwork. As a result, his team kept Ford out of bankruptcy, reversed market share losses with improved auto designs and quality, brought jobs back to the U.S. from overseas plants, and restored the company’s profitability by becoming cost competitive with foreign producers.
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