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​Rethinking in a Time of Economic Uncertainty

5/14/2020

3 Comments

 
For much of our country, the battle to survive economically during the COVID-19 crisis is every bit as real as the war we’re waging against the virus. Entering what specialists have termed a “wartime economy,” many of today’s leaders are looking to wartime history for guidance. But today’s economic crisis, Oxford University’s Daniel Susskind warns, is framed by entirely different circumstances:
First, we should acknowledge the peculiar paradox at the core of this crisis. Although we are confronting an economic calamity, no actual economic weaknesses are to blame. The economy has not been leveled by bombs—we have simply turned it off. This creates a unique challenge: How do you support people during this moment of suspended animation, and ensure that, when we switch the economy “back on,” it is able to propel itself into action, unscarred by this pause.
Perhaps, rather than lessons offered by wartime leadership giants, which focus on rebuilding business in a decimated economy, we would do well to study a more recent leadership approach: rethinking. 
 
When Alan Mulally took over as Ford Automotive’s CEO in September 2006, the company was facing certain bankruptcy. Within the space of a single year, Mulally reduced its loss margin by $10 billion. By 2008, less than two years after he took the helm, Ford was profitable, again. At the heart of this success was what Mulally considers his most important contribution to the company: his “One Team” approach.
           
Every Thursday, Mulally held a business plan review meeting, or BPR, with all of his team leaders. Attendance was mandatory. In the days preceding the meetings, Mulally would engage employees from all levels of the company, seeking their input on what was working and not working in their respective areas, and he expected his leadership teams to do the same. During the BPRs, he and the team leaders shared what they’d learned with each other, along with progress data from their departments.
 
The first meeting was wildly unproductive. In spite of Mulally’s reassurance that honesty would not be penalized, team leaders presented their successes, but remained quiet about what was not working efficiently. About halfway through, Mulally stopped the meeting. “We’re going to lose billions of dollars this year,” he said. “Isn’t there anything that’s not going well here?” Still, no one spoke.
 
As the second BPR approached, Mark Fields, in charge of Ford Americas, faced a dilemma: Production had already begun on the new Ford Edge, but a grinding noise coming from the suspension had been reported. Deciding to take Mulally at his word that honesty would not be punished, he reported the issue. The silence in the room was deafening. Fields remembers his colleagues had begun to look at him with pity when suddenly, Mulally started clapping. “Mark, that’s great visibility!” he said. “Who can help Mark with this?”
 
In the months following this revelatory meeting, Mulally taught the different branches of Ford Automotive to rethink their individualized approach into a “One Team” perspective, working together for the success of everyone. He encouraged his team leaders to share information, to problem-solve together, to extend the practice of honesty without penalty to staff from all levels, and to value the input they received. When asked why he felt this extreme brand of community and communication was so important, he stated simply, “We finally have it all out in the open. Now we can start fixing it.”
 
It’s easy, in times like this, to become overwhelmed by uncertainty and paralyzed by fear. None of us has faced anything like this before. But if we take Mulally’s leadership lesson to heart, we know we can work together to successfully lead our teams through this unprecedented time—provided we understand what we’re facing. Mulally often said, “It’s important to seek understanding before seeking to be understood,” and that simple philosophy helped him lead Ford Automotive from bankruptcy to profit. Whatever challenges we face as our country struggles to reopen, a team approach to problem solving will get us further than going it alone. Ask lots of questions, both of your employees and of other leaders you respect and offer your expertise as we all work together to navigate this time successfully.
 
           
Join the Conversation!
 
Alan Mulally knew that for problems to be solved, they first had to be discovered and understood. What are some problems you anticipate as our country reopens its economy? How do you think we can create opportunities for our teams to alert us to the issues they’re facing? Let’s share ideas in the comments below as we all work together during this time.
3 Comments
Brian link
5/15/2020 10:30:32 am

This is a great turnaround story!

Reply
Roberta L. Bernstein
5/15/2020 11:51:35 am

A great, inspiring story, Antigoni. Kudos.
As for application to recovery from the current economic problems, it doesn't really apply. The economy was in good shape before,and has merely been suspended, but as soon as everyone is back at work and markets are open to all, it should rebound quickly--just move the car engine from neutral to back to drive. However, the area where we can apply the Ford lesson is the lack of health care for the poor. We knew about it before but chose to ignore it. Now that they are getting sick and dying, and everyone else to pay for it, it has become evident that the problem is not this particular disease, but the underlying inequities in our whole social system. It needed to be fixed before COVID-19, and the needs, now magnified, are even greater now.

Reply
Sally A Cook
5/15/2020 01:20:59 pm

Oh, Robert Bernstein, it's not either/or, it's both/and. As to the economy, it remains to be seen how many people return to brick-and-mortar stores in contrast to those of us who will continue to shop on-line. It remains to be seen how many jobs will be permanently lost, especially jobs that low income people filled (e.g., staff at restaurants that may struggle to survive, if they re-open at all). It remains to be seen how many jobs in the trades will be affected by a slow-down in construction, as employers realize that their employees can work from home instead of at those shiny new offices that were on the drawing boards before the pandemic. There are a lot of unknowns -- it may not be a simple matter of shifting back to Drive.

Reply



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  • HOME
  • Online Courses
    • Times of Change
    • Building Team Relationships
    • World War II Leadership Series
  • Popular Programs
    • Lincoln
    • Eisenhower & Churchill
    • Gettysburg
    • Lewis & Clark
    • WWII in Gettysburg
  • All Programs
    • Eisenhower & D-day
    • The Many Faces of Leadership
    • Everything DiSC® Workplace
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    • Customizable
    • Which program is right for you
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    • The Archives >
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