LEADERSHIP: WHAT PRICE ARE YOU PAYING FOR SILENCE?
Published: 2011-01-31 There are 10 comments ... please add yours below
This Potshot was prompted by:
Prompted by “Epiphany in Dearborn”
The Economist, December 11 2010
URL: http://www.economist.com/node/17673258?story_id=17673258
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Who said the following? “We are forecasting a $17 billion loss and no one has any problems!” Alan Mulally, after the first meeting with his senior team on arriving to turn around Ford in 2006. For the Mafia, omerta or “the code of silence” hides crimes. At Ford, as in many other companies, silence is the crime – destroying value and eventually viability. Do facts and faults get talked through in your business; or is bad news stifled? What would your people say? Here are some actions Mulally took and others I’ve picked up over the years.
- Monitor change: be brutally honest. Don’t, as the US auto companies did, first disdain Japan’s small cars, then their reliability and lastly their environmental credentials.
- Recognise faults: face up to your risks and constraints. Mulally made this safe at Ford – thus building trust and mutual support and encouraging people to help each other solve problems.
- Think the unthinkable: consider what else might go wrong; equally what options you have and their implications. Consider possibilities that go beyond the norm.
- Reinvent strategy: upending the conventional wisdom, opening up new options, learning from your competitors – or other industries. Nothing can be sacred.
- Re-align resourcing: make sure that funding and support (including your time and attention) follow the new priorities – giving others the courage for what needs doing including selling non-core businesses such as the prestige European brands Ford had previously acquired.
- Take decisions: being as tough as is necessary. Turnarounds and setbacks call for courage and speed. Not every choice will be right but the status quo is the worst choice of all.
- Seek diversity: of experience and views. The cultures of old businesses often reflect only the skills and mentality that built the business, lacking capacity for new challenges.
- Ask customers: find out what they value today. Talk to them. Do they still want a wide range of chassis options or would they prefer reliability and economy?
- Build teamwork: break down fiefdoms. At Ford, Mulally unleashed a new era of working together to solve problems – gaining synergy across the group.
Unlike Chrysler and GM, Ford didn’t seek protection in bankruptcy during the GFC. It was already progressing on its recovery. By now, it has cut $14 billion of operating costs and racked up its fifth quarterly surplus in a row – thus allowing it to slash $13 billion of debt.
Most of us work in businesses that are tiny compared with Ford. So, if it’s possible there, then why not in our own smaller operations? We don’t have to be Alan Mulally – all we need is to copy his commitment to dealing in facts, openness, courage and, above all, getting everyone working on the same team.
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Dr. Timothy Pascoe AM
PhD (Cambridge), MBA (Harvard), BE & BEc (Adelaide)
Creator, V|E|C|T|O|R Leadership®