MEETING TRENDS: Leadership as a Keynote or Workshop

“The culture of an enterprise is the responsibility of leadership. And without a culture of honesty, the difficult times will overwhelm any hope of success.”

In 2006, the Ford Motor Company was in trouble. On the brink of bankruptcy, this iconic American brand was on the ropes. Declining car sales had led to a financial crisis within the company, and the public perception of the quality of Ford automobiles had plummeted.

Something needed to change—but first, they needed to find the right person to guide the company.

After being rebuffed by two other automobile executives, Ford made the bold and unconventional choice to turn to Boeing executive Alan Mulally. While he was new to the automotive industry, he didn’t hesitate to begin taking steps to secure the future of his company.

Mulally took out a massive $23.6 billion loan, putting up all of Ford’s assets as collateral—including Ford’s famous blue oval logo.

While this loan—which allowed Ford to avoid taking a government bailout in 2008—was a major part of the successful rejuvenation of the company, even more important was Mulally’s transformation of Ford’s corporate culture.

Early on, Mulally attended a weekly business status meeting. According to COO Mark Fields, Mulally noticed something strange from the very beginning. “Ford uses a color code for topics—green for good, yellow for a potential issue, red for a problem—and everything was green.” Mulally thought that odd for a company losing billions.

Fields himself had a problem with a new product launch, a liftgate issue with the new Ford Edge that could delay its release. “I said, ‘Code it red,’ and they said, ‘Are you sure you want to do that?’”

When it was Fields’ turn, he boldly labeled the Edge release red. “I could feel the chairs move away from the table,” Fields said. “I said, ‘We have a problem, and I’d love to have help from manufacturing and quality to help resolve it.’ Alan turns to me and starts clapping. The next week, everybody’s chart looks like a rainbow.”

That single moment may have saved the Ford Motor Company from failing completely.

Before Mulally entered the picture, Ford looked like a poster child for a corporate culture of fear. Individuals were afraid to voice problems or concerns, afraid that they would be blamed. They feared they might find themselves no longer considered for promotions, or worse, out of a job. Instead, they kept their concerns to themselves, painting a Bob Ross-style picture full of happy little trees while the reality of the situation was much more dire.

Mulally encouraged a culture of openness, collaboration, and discussion. Rather than whitewashing any potential problems, he insisted that they be brought to everyone’s attention as soon as possible. That way, issues could be dealt with quickly, saving the company the headache of having to try to recover from mistakes by preventing them in the first place.

Still, Mulally exercised control over the meetings, making sure that every voice was heard and established a culture of respect. “They don’t bring their big books anymore, because I’m not going to grind them with as many questions as I can to humiliate them,” says Mulally. He also insists that everyone pays attention, which means no cell phones or side conversations are allowed. “If somebody starts to talk or they don’t respect each other, the meeting just stops. They know I’ve removed vice presidents because they couldn’t stop talking because they thought they were so damn important.”1

Mulally’s focus on changing the culture at Ford paid dividends. The quality of their cars increased, and they avoided the difficulties faced by other American automakers during the Great Recession, thanks in large part to an attitude shift that focused on solving problems rather than pretending that they don’t exist.

The Mulally story is an excellent example of the ways that bold leadership can set the tone for an entire company. One person who makes a clear decision about the values of the company and the principles by which it acts, can set in motion a drastic change in how each person in a company thinks and behaves.

I can’t overstate how important it is for business leaders to constantly be aware of their corporate culture. Everything starts from the top, and the style and tone of collaboration, teamwork, and integrity flows downhill.”

Wes Berry is a Keynote Speaker and Workshop facilitator with the professional skills and real-life experience to deliver on any stage. He is a TEDx Speaker and a Wall Street Journal best-selling author; he has written sixteen books in the business and success genres. As an entrepreneur, he built a $750 million international company that operated in 130 countries. Wes has even done some standup comedy as well as radio and television.