crisis leadership - featuring alan mulally

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