From the course: Creating a Connection Culture

Ford case study: Connection drives sustainable superior performance at Ford

From the course: Creating a Connection Culture

Ford case study: Connection drives sustainable superior performance at Ford

- When Alan Mulally was introduced as the new CEO of Ford Motor Company in 2006, he was asked, "What kind of car do you drive?" His answer, "A Lexus, the finest car in the world." The room fell silent. Mulally's tenure as CEO of Ford was full of surprises, particularly the miraculous turnaround he led. The connection culture he cultivated helped save Ford. Mulally is an aerospace engineer by training. He spent 30 plus years at Boeing rising through the ranks before taking the wheel at Ford. Fortune magazine has named him as one of the top three leaders in the world. Alan Mulally is an excellent example of a leader who created a connection culture. The year Mulally arrived at Ford, sales, market share, and profits were falling, and the automaker's culture was beset with turf wars. This culture drove Ford to the verge of bankruptcy. Mulally used founder Henry Ford's original vision of opening the highways for all mankind to express how the company makes the world a better place by serving others. He explained that Ford gives people freedom of mobility so they can access opportunities for growth. This vision united employees and focused them on a cause greater than self. Mulally boosted the connection culture element of value in the Ford culture. He frequently used the phrases, "One Ford," "One team," and "Working together always works." He distributed wallet size cards that had Ford's business plan on one side and 16 expected behaviors or values on the other side, including work together effectively as one team. In meetings, he acted as a facilitator and coach rather than a dictator. Instead of thinking of other individuals and organizations as competitors, Mulally had a win-win mindset and approach to relationships. This helped him forge an agreement with the United Auto Workers union to make the changes necessary for Ford to make a profit in return for bringing production back to the US. Mulally expected leaders to openly share obstacles they faced, and he celebrated leaders who helped one another instead of just focusing on their own area of responsibility. Another way he increased the connection culture element of voice was through the weekly business plan review meeting or BPR. Held at Ford's global headquarters, the BPR was attended by the global leadership team and all business and functional leaders, either in-person or by teleconference. Leaders gave updates on their goals, which were color-coded green for on target, yellow for at risk, and red for off target. When problems were identified, follow-up were scheduled to find solutions. VPRs address strategic topics, such as the economy, labor supply and competitive developments. Feedback was encouraged which made it a safe environment for honest dialogue. By the time Mulally announced his retirement in May of 2014, he had led Ford to 19 consecutive profitable quarters and rising market share in North America. Remember the stunned silence he received when he was first introduced? Well, when he retired, Mulally received a standing ovation. By communicating and inspiring vision, valuing people, and giving them a voice. Alan Mulally created a connection culture at Ford that produced sustainable superior performance during his tenure. Alan told me that connection culture provided the best explanation of why he has been successful in his career. Connection can bring out the best in you and your organization too.

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