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This is exactly what Alan Mulally walked into when he took over as the new CEO at Ford in 2006. Ford was in serious trouble, and Mulally was brought in with the hope that he could save the company. Much as Chief Cauley had done at the CRPD, Mulally made it his first order of business at Ford to find out as much as he could about the current state of things from the people who worked there. The task, however, proved more difficult than he expected. To keep a pulse on the health of the organization, Mulally introduced weekly business plan reviews (BPRs). All his senior executives were to attend these meetings and present the status of their work against the company’s strategic plan, using simple color coding—green, yellow and red. Mulally knew that the company was having serious problems, so he was surprised to see that week after week every executive presented their projects as all green. Finally, he threw up his hands in frustration. “We are going to lose billions of dollars this year,” he said. “Is there anything that’s not going well here?” Nobody answered. There was a good reason for the silence. The executives were scared. Prior to Mulally, the former CEO would regularly berate, humiliate or fire people who told him things he didn’t want to hear. And, because we get the behavior we reward, executives were now conditioned to hide problem areas or missed financial targets to protect themselves from the CEO. It didn’t matter that Mulally said he wanted honesty and accountability; until the executives felt safe, he wasn’t going to get it. (For all the cynics who say there is no place for feelings at work, here was a roomful of the most senior people of a major corporation who didn’t want to tell the truth to the CEO because of how they felt.) But Mulally persisted. In every subsequent meeting he repeated the same question until, eventually, one person, Mark Fields, head of operations in the Americas, changed one slide in his presentation to red. A decision he believed would cost him his job. But he didn’t lose his job. Nor was he publicly shamed. Instead, Mulally clapped at the sight and said, “Mark, that is great visibility! Who can help Mark with this?” At the next meeting, Mark was still the only executive with a red slide in his presentation. In fact, the other executives were surprised to see that Fields still had his job. Week after week, Mulally would repeat his question, We are still losing tons of money, is anything not going well? Slowly executives started to show yellow and red in their presentations too. Eventually, it got to the point where they would openly discuss all the issues they were facing. In the process, Mulally had learned some tricks to help build trust on the team. To help them feel safe from humiliation, for example, he depersonalized the problems his executives faced. “You have a problem,” he would tell them. “You are not the problem.
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