The Ford Story - Alan Mulally

Re: Car Makers Take Case to the Web (WSJ - Friday, December 5, 2008)

http://www.fordstory.com/

This website is worth a visit. Alan Malally is serious and credible in his efforts to make the case for the survival of Ford. His argument caught my attention as being genuine--and worthy of attention. He explains that Ford is in good financial shape at the present and that the company implemented a new strategy several years ago that is moving the company closer to its goals of producing more fuel-efficient cars. He points out that quality and safety of Ford vehicles have been receiving high ratings--and that he is very proud of that accomplishment. He acknowledges that there is more to do.

He then gets to Ford's reason for requesting money from the government. He explains that if Chrysler and GM go down--they will take with them the suppliers that Ford depends on in order to sustain its business. If Ford cannot obtain the supplies to continue in business--they will need help until things stabilize. Mulally has done a great job for Ford, which renews my confidence that all of the US automakers may not be doomed to fail.

My view about bailing out the automakers is starting to change. I am deeply concerned about the lost jobs. In addition, I am just as concerned about a financially strong company that is clearly on the right track being taken down by other automakers that have not been as proactive.

So, the proposed solution--work out a plan to give them a little bit of money to create breathing room and then leave this dilemma to President-elect Obama to resolve. My disappointment with the CEOs of Chrysler and GM is surpassed by my disappointment and frustration with partisan politics.

Fireside Chats

Rounds 1-4 of the leadership fireside chats I realized that there was something amazing about every leader researched by the class. Every leader was also quite different in many ways, but there were rather impressive similarities. The presentation on Steve Jobs was very real--or maybe the "good" is too absent. Warren Buffett has his critics, too--but his success without too many casualties makes it easier to overlook the few that he's left behind.

I'm inspired by Randy Pausch--I listened to the "Last Lecture" over the weekend; and WOW, it was powerful. When I have some extra time, I'm going to investigate the Alice Project at Carnegie Mellon. More new names came up...Isadore Sharp, Thomas Blach, Clarence Otis, Walter Reuther and Chris Gardner.

Hearing about the qualities of these leaders is inspiring--and we can all can learn from them. The qualities that are less than desireable are also learning opportunities--what not to do.

Leadership qualities can be collected and compiled like a patchwork quilt--different squares acquired from various sources make a beautiful finished product. The information about these well-known leaders can certainly enhance my own patchwork quilt.

This class has been so enlightening and inspiring--I am a better person and leader because of it.

New Perspective...

An interpreted comment to an earlier post...



Regardless of your commitment to the organization or your drive to inspire others--even with great leadership--you still need the employees themselves to be active participants.



This perspective suggests that the leader is more effective when others are involved in the leading--in other words, walking in either lock-step with the leader or, better yet, in front of the leader. This conflicts with the idea that leaders must lead and others must follow--but I like the tone of it. Moving along with or in front of the leader is much more palatable than having to "follow the leader" as though it isn't a choice.

Leadership Lessons

Thinking back about the leaders that I have encountered in my life, I realized that there are many people that have impacted my views about leadership. Apparently I was pretty observant even early in my career and noticed the good, the bad and the ugly from the leaders that I passed along the way to where I am now. Starting back in the early years, Eugene Street taught me that when you hire teenagers to run the concession stand in a movie theater, they must participate in inventory control. Mr. Street made us count the cups (popcorn and drink) every night to make sure that we were honest and not wasteful. However, as a consolation, he allowed us to eat as much popcorn as we could hold. The lesson--accountability is essential. My first office job was in a workers' compensation claim center--typing workers' compensation claim checks. The office was set up like a "news room," no cubical walls--just a large open area of workers. Dorsey Walker--the supervisor--practiced management by walking around. She would stop and peer closely at the task you were completing to ensure that you were doing your job. Dorsey's lesson was a combination of "young workers cannot be trusted to do their work" and "the best way to keep the workforce honest is to intimidate them by being present." Fortunately, I moved on from there and met Clay Hicks. The lesson from Mr. Hicks was that supervisors can be kind. I worked very hard for Mr. Hicks. The next job took me to places that represent the ugliest days of my working career. The lesson learned from that supervisor is workplace boundaries must be enforced. The picture turned brighter in the next job. Mr. Pearson was terribly disorganized, but working for him was pleasant--albeit challenging. The lesson from him was to look for every opportunity to make a difference--even the less obvious ways. The next leader was also very kind--like Mr. Hicks and Mr. Pearson. He showed confidence in my abilities and I felt confident. That job was the launching pad for my current job, which I nearly didn't apply for.

These experiences helped me form good work habits, self-confidence, flexibility, and ambition.

Although some experiences were better than others--I am deeply grateful for the impression that each leader left in my life.

Warren Buffett

I've just finished research and writing about Warren Buffett--everything from his childhood to his legacy. At age 78, Buffett may or may not be thinking about his legacy, but he's accomplished so much in his life that his legacy is set--regardless of what happens next.

Notwithstanding his renowned success in the investment world, the characteristics that are most admired about Warren Buffett are his honesty, candor and unwillingness to deviate from his principals inspite of criticism from his peers. He knows exactly what he is good at and has complete confidence in his abilities. However, he has managed to go through life without arrogance. He is often characterized as "grandfatherly," which is so true and evident if you listen to him speak during interviews or presentations. There is strip of interviews on the Blog that are worth listening to.

My favorite Buffet story is told by Alice Schroeder (his authorized biographer) in her book, "The Snowball: Warren Buffett and the Business of Life." Buffett says, "The snowball just happens if you're in the right kind of snow; and that's what happened with me. I don't just mean compounding money either. It's in terms of understanding the world and what kind of friends you accummulate. You get to select over time, and you've got to be the kind of person that the snow wants to attach itself to. You've got to be your own wet snow, in effect. You'd better be picking up snow as you go aong, because you're not going to be getting back up to the top of the hill again. That's the way life works."

What is my leadership brand?

Perhaps the easiest way to begin is to list the brand qualities that I value most and see as necessary for effective leadership:

· Steward of the organization’s most valuable resources—its staff
· Cheerleader for those who are setting goals and achieving milestones
· Coach for those who need encouragement
· Promoter of initiatives that make the organization a better place to work
· Fully engaged and full of energy to tackle the day’s challenges
· Outwardly-focused and ready to serve the needs of others

Since it matters more to know how others view my leadership brand, I looked at two 360 degree evaluations that had recently been done and found the following feedback:

· Excited about career
· Dedicated, energetic
· Subject matter expert
· Calm under pressure
· Good listener, trusted, honest
· Accessible and open-minded
· Sets personal goals and achieves them
· Focused on the task at hand
· Confident
· One of the good guys

Based on the feedback, the qualities that I so admire and desire seem to be all but missing from my dossier. Does this list indicated that they see me as a good steward? Am I helping or inspiring others to set goals? Do they consider me to be a source of encouragement? I’ll take being one of the good guys to mean that they see me as someone that wants to make the organization a better place to work. My level of engagement must be evident.

While overall the list is generous and kind, my brand from the view of others is very different than I expected. The most significant omission is being seen as outwardly-focused and ready to serve others. What an enlightening exercise! I have much work to do.

"It's not a new truck; it's a new F-150"

Wall Street Journal, October 31, "Ford Lays Bet On New Truck By Rehiring 1,000 Workers."

In this era of organizational frailty and financial panic, Ford is putting its best foot (er, truck) forward and has made a statement of confidence and strength. Why not?! ?

The American public responds well to statements of confidence and strength. The F-150 has been a solid product for Ford--ranking high in customer satisfaction among truck-buying consumers for years. Falling gas prices will certainly help. The credit markets are loosening. Chrysler and GM seem to be floundering. The timing is perfect.

But, what is so brilliant about this strategy is that its not just a product strategy, it is also a human capital strategy. As Chrysler and GM lay-off their employees and are scrambling to find money in order to stay afloat, Ford is demonstrating confidence in its bestselling truck line and will be rehiring workers--not just a few, but 1,000 workers.

Ford's strategy is what we would expect from an American company. Ford's move is very likely to inspire people to buy American--and to buy Ford.