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.

Falling stars...

One of the lead articles in the October 24 Wall Street Journal reads, "...Greenspan Admits Errors to Hostile House Panel." I guess the next article could be titled, "House Panel Calls for Greenspan to be Burned at the Stake."

Alan Greenspan's leadership as Chairman of the Federal Reserve was unsurpassed in its excellence. He was expected to maintain that delicate balance between growth and inflation, which he did brilliantly. He had an "E.F. Hutton" quality--and was deeply admired. Now, all of a sudden, the brilliance has been dimmed to a "shadow of shame." The House Panel's questioning was harsh and demeaning. Mr. Greenspan did not engage in any illegal activity during his tenure as Chair of the Fed. He is being taken to task for not predicting this "perfect storm."

While holding leaders responsible is important--it bothers me that this House Panel is engaging in fingerpointing and seems to be searching desperately for a "fall guy." Members of Congress are leaders who are just as responsible for steering the country along an even course.

While everyone is upset and frustrated by the state of the economy--Mr. Greenspan was not the source of the problem. Moreover, I doubt that anyone would have listened to him if he had recognized the problem and attempted to rein the financial markets in a bit. He simply would have "fallen from grace" sooner.

What $10 will get you...

On October 16th, I learned "chacha" and how to text Google! That, by itself, was certainly worth the $10.oo that I spent to hear Jason Ryan Dorsey, "The Gen Y Guy,"speak at RHRMA's October meeting. I was blown away by this speaker. It's obvious that he's been an inspiration to many.

Jason conveys his "generational" message with great humor and over-the-top energy. At the tender age of 29, he is quite accomplished. He wrote his first book when he was 18--"Graduate to Your Perfect Job." Many schools, colleges and workforce program require students/participants to read this book. He's been a guest on 60 Minutes and the View!

Hearing Jason speak about the characteristics of the various generations is hilarious! There was a nice sampling of all generations in the room. No one was untouched by this dynamic speaker. I haven't laughed so hard in a long time.

If you ever get the opportunity to hear Jason speak...trust me, you should go!

Salvaging a vote...

"He's not the McCain I endorsed." "He has an opportunity to step up and be a forceful leader during these challenging times," said Ron Kaufman, a veteran party operative who also worked for Romney. "McCain got the nomination because that's what his brand is, but somehow it's gotten muddled." These quotes greeted me this morning as I read the news on AOL.

Upon opening the The Wall Street Journal this morning, a front page article, "In Virginia, McCain Struggles to Hold the South for GOP" jumps off the page.

Virginia has turned gray on the national map!

Many of us will be voting the person (albeit imperfect)--not the party this year and that does not bode well for John McCain. However, I'm hoping that my vote can be salvaged.

I need to see real leadership from Senator McCain--not desperate measures, not a phony "Mr. Nice-Guy" attitude. Does a confident demeanor count? Yes, definitely! John McCain looked timid and very uncomfortable during the last debate. Does charisma count? Yes, definitely! Senator Obama is an engaging speaker--even if his message is slightly off-key for me. I realize that trying to convert John McCain into a confident yet relaxed, engaging and charismatic speaker isn't going to happen.

But my vote could be salvaged by real leadership. Throw down some crumbs and I'll follow the trail to the polls. What would I will need to hear AND see...

• Specific details about his plan to right the economy
• Realistic and honest answers about who he will surround himself with if elected so that he can to solve the problems
• Specific details about how he will solve problems with the Democrats as the majority party in Congress
• Reasons we should trust a long-term senator that cannot boast of significant accomplishments to demonstrate why he is more prepared to solve problems than his opponent

Will John McCain step up to the plate and show me that he can be a forceful leader? If he is saving his best for last...it may be too late.

Dodging Questions and Half Truths

Did you watch any of last night's Presidential debate? If only managers and supervisors could get by with dodging questions, answering a different question than was asked, and, when they answer the question at all, respond with half truths! Not really. Is it unrealistic to expect the two candidates vying for the most powerful leadership position in the world to provide full and truthful answers to the questions asked? Apparently it is unrealistic--and that's very disappointing. I was particularly struck by the finger-pointing about the current economic problems our country. Senator Obama attributes the failing economy to President Bush and Senator McCain. However, the deregulation that is partially to blame was "championed by President Clinton" (Richmond Times-Dispatch, October 8, 2008). Even if the deregulation occurred during President Clinton's terms in office, could he possibly have envisioned the greed and recklessness that would grip Wall Street? Would it have been reasonable to expect him or anyone to anticipate this problem? What is much more striking to me is that several years ago, both Senator Obama and Senator McCain realized the problems that were emerging--and both tried to intervene; however, neither was successful--and that's telling. Who really is the right candidate for the job? The leader that can bring truly bring all parties together to find solutions to these troubling times. I haven't seen him or her yet.

Constructive Controversy

Just what is constructive controversy...have you experienced it or created it? Saying the phrase aloud sounds a bit ominous. Maybe it's like being cast into the lion's den--at his dinner time! Or, maybe it's more akin to being locked in a conference room with a co-worker (or more than one co-worker) that has very different views from yours. According to Kouzes' and Posner's "Credibility: How Leaders Gain and Lose It, Why People Demand It," the process is intended to "encourage thoughtful dissent" (2003). Interesting...while I would agree that giving the boss the benefit of varying points of view for decision-making is a big plus--the workers participating in the discussion need to bring their thickest skin. Even the most skilled leader cannot always predict the outcome of this process. From the workers' point of view, if the issues on the table are known to them, each is likely to decide how much he or she has at stake in the issue and base his/her level of participation on that. Maybe that's too cynical...Abraham Lincoln used this technique successfully during this presidency and brought out the best from the participants.

F O R D

Found On Road Dead? OR First On Race Day?

Please ask me if I would own a Ford and I'll tell you...oh, yes! Is owning a Ford luxury transportation? Well, it's about a close as my family will get for awhile. Our beautiful customized Ford Van gets us where we want to go "in-style." So, how did my family overcome the fear of owning a Ford? We believe in the company's commitment to quality in the U.S. car market.

The Wall Street Journal recently discussed Ford's survival strategy--to really get into the U.S. small car market--and the challenges that Ford's "small car" strategy will encounter. However, nothing in the article addressed overcoming the quality problems that have lead to the car-buying public coining acronyms for Ford--like "Fix Or Repair Daily." But, Ford didn't write this article.

Honestly, Ford may still have a long way to go to fully restore confidence in U.S. car-buyers, but the company is making great strides. Check out the July 12, 2008 article, "Top 10 Ford Motor Company Quality Success Stories" on Ford's website. This release proudly boasts, "The quality of Ford brand vehicles soared to the top of the charts, equalling that of Toyota and Honda, according to 2008 U.S. Global Quality Research Systems." The other nine success stories are equally impressive. The second success story particularly caught my eye..."virtual technology expertise worth sharing," because of its focus on line operators, ergonomics and efficiency. Ford may have found its golden nugget--leveraging its human capital.

Ford's website describes an "Investing in Quality" initiative to "ensure that Ford accelerates quality." Ford created the job, Quality Operating System Coordinator, first as a pilot position and then it became a permanent job. Quoting the website, this position provides a means for "UAW members to have control over quality." Ford is serious about quality--the individuals in this position must be Six Sigma Black Belts and Ford plans to have two such individuals in each plant (Ford digital snippets--available via the Investing in Quality link above).

Another great read is Bryce Hoffman's August 12, 2008 article in the Detroit News titled, "Ford jumps into quality race, Blue Oval adds training in vow to beat Toyota." This article confirms that Ford has fully committed to quality--and recognizes that its human capital is the way to get there! Quoting from the article, Ford has made the decision to "enroll hourly workers from each of its U.S. factories in a rigorous quality training program at Wayne State University that is usually reserved for managers." Wow!

So, maybe the old acronyms can be retired and replaced with "Found Organization's Real Driver"--its human capital. Go Ford!

My favorite "traditionalist" is...

An inspirational leader who is honest, competent and forward-thinking; and it has been my very good fortune to work with her.

Oh, there have been other "traditionalist" leaders along the way that have made a difference--ranging from the boss that required everything to be written in black ink and allowed only one staple in any size stack of papers to the boss whose management style was "intimidate by walking around." A discussion of those memories is best left to another time.

In contrast to those individuals, my favorite "traditionalist" not only let me FLY, she gave me wings. To that, she would say, "Hah!" And, she would tell you that I've always had wings and all that she did is step out of the way. She's very generous with praise, but, truth is, like the Wright brothers' attempts at flying--it has taken some false starts, but eventually the "craft" started getting off the ground. She has shown such confidence in me that I feel confident.

Although she (and I) know that any level of scrutiny would easily reveal all of my imperfections, she sees beyond them and focuses on the best in me. She reaches out for my contributions and makes me feel valuable. She always makes me feel that I bring something important and special to the table. Again, I can hear her saying, "Hah!" She would say that it would be hard to keep me away from the table and that I approach her.

She has taught me much about getting the best from the people that surround and support the leader. She cares about people. She notices and acknowledges my successes--and, to keep it real, she also knows when I'm not at my best. But, she creates an environment in which I feel comfortable taking risks.

She disagrees as often as she agrees with me, which has kept me grounded.

She shares tidbits of wisdom from time-to-time. My personal favorite is, "you're likely to meet the same people you passed on your way up if you find yourself winding your way back down--so be careful how you move up. "


The best thing about my favorite "traditionalist" is that she treats everyone this way!