crisis leadership - featuring alan mulally
TRANSCRIPT
Crisis Leadership Featuring Alan Mulally
By the Corporate MonksGauravSreePrashanthJamieKomalSantanu
Agenda• What is Crisis Leadership?
• Automobile Industry Crisis – 2008
• Spotlight on Alan Mulally
• Crisis Leadership Lessons
• Is Alan Mulally A Level 5 Leader?
Crisis Leadership
Stuff Happens!!
Why ?
Market Changes
Product Failure
Customer behavior
Natural events
Competition
Automotive Industry Crisis - Backstory
Financial Crisis (2008)
Energy Crisis (2003 – 2008)
JOBS
Ford’s Crisis
Who is Alan Mulally?
Crisis Leadership Lessons
Lesson 1: Leaders must face reality
Lesson 2: Get the world off your shoulders
One Ford
Mulally’s One Ford innovation platform consisted of four main parts:
1) Bring all Ford employees together as a global team2) Leverage Ford’s unique automotive knowledge and
assets3) Build cars and trucks that people wanted and
valued 4) Arrange the significant financing necessary to pay
for it all
Lesson 3: Build a mountain of cash, and get to the highest hill
● Mortgaged all company’s assets in 2006 for billions of dollars in loans in anticipation of unexpected events. In 2008 the Great Recession happened.
● Primary focus on “Ford” brand.
Lesson 4: Before asking others to sacrifice, first volunteer yourself.● Committed to take $1 annual salary
if Ford took bailout money from Federal Government
● Sold all but one corporate jets
Lesson 5: No matter how bad things are, they will get worse.
Lesson 6: Never waste a good crisis.
Lesson 7: Be aggressive in the marketplace.
“People don’t buy what you do. They buy why you do it.”-Simon Sinek
Alan Mulally’s years
Is Alan Mulally A Level 5 Leader?
“He always saw one of his key roles as kind of being the cheerleader-in-chief, keeping everybody motivated and focused.”
-Bryce G. Hoffman (Author of American Icon: Alan Mulally and the Fight to Save Ford Motor Company)
Referenceshttp://guides.wsj.com/management/developing-a-leadership-style/how-to-lead-in-a-crisis https://hbr.org/2016/04/culture-is-not-the-culprit http://abcnews.go.com/Business/Economy/story?id=6378775 http://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/leading-in-the-21st-century-an-interview-with-fords-alan-mulallyhttp://changethis.com/manifesto/93.01.AmericanIcon/pdf/93.01.AmericanIcon.pdfhttps://www.youtube.com/watch?v=UbgDEUbADjk https://www.nytimes.com/2014/05/02/business/ford-motor-chief-to-retire.html?_r=1http://www.success.com/article/engineering-a-comebackhttp://www.forbes.com/sites/sarahcaldicott/2014/06/25/why-fords-alan-mulally-is-an-innovation-ceo-for-the-record-books/2/#1fae1b9d639chttp://www.kornferry.com/institute/alan-mulally-man-who-saved-fordhttps://qz.com/598998/how-changing-your-mind-makes-you-a-better-leader/https://hbr.org/2016/04/culture-is-not-the-culprit