Interview Leading in the 21st century: An interview with Ford’s Alan Mulally Automaker Ford was losing billions of dollars when Alan Mulally took the wheel, in 2006. Here, he reflects on his leadership style and his efforts to turn around the organization. November 2013 When Alan Mulally was named president and CEO of Ford, in 2006, the famous American automaker was on the brink of bankruptcy. The company was preparing to post the biggest annual loss in its 103-year history—$12.7 billion. Seven years later, Mulally is widely seen as the man behind one of the most impressive corporate turnarounds in history. Ford has posted an annual profit every year since 2009, its stock price has rebounded, and a new corporate culture has transformed the way the organization works. In an interview with McKinsey’s Rik Kirkland, Mulally reflects on his approach to leading a large global organization, the process by which Ford seeks to understand the global business context, the importance of managing your energy (and not just your time), and why he thinks “One Ford” is more than just a catchphrase. McKinsey: How would you describe your leadership style? Alan Mulally: At the most fundamental level, it is an honor to serve—at whatever type or size of organization you are privileged to lead, whether it is a for-profit or nonprofit. It is an honor to serve. Starting from that foundation, it is important to have a compelling vision and a comprehensive plan. Positive leadership—conveying the idea that there is always a way forward—is so important, because that is what you are here for—to figure out how to move the organization forward. Critical to doing that is reinforcing the idea that everyone is included. Everyone is part of the team and everyone’s contribution is respected, so everyone should participate. When people feel accountable and included, it is more fun. It is just more rewarding to do things in a supportive environment. Say, for example, an employee decides to stop production on a vehicle for some reason. In the past at Ford, someone would have jumped all over them: “What are you doing? How did this happen?” It is actually much more productive to say, “What can we do to help you out?” Because if you have consistency of purpose across your entire organization and you have nurtured an environment in which people want to help each other succeed, the problem will be fixed quickly. So it is important to create a safe environment for people to have an honest dialogue, especially when things go wrong. A big part of leadership is being authentic to who you are, thinking about what you really believe in and behaving accordingly. At Ford, we have a card with our business plan on one side and the behaviors we expect listed on the other. It is the result of 43 years of doing this.
Posted on: Thu, 07 Nov 2013 13:12:51 +0000
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