The Difference Formula

Bryce Hoffman’s book, American Icon, is an independent account of Alan Mulally’s efforts to save Ford Motor Company from bankruptcy and return it to profitability. I followed Mulally’s career at Boeing and had always admired him. Not making him CEO was one of the biggest blunders Boeing ever made, regardless of whether the Pentagon (yes, military oversight) wanted a CEO from the outside or not. What impressed me most was the book’s narrative of Mulally’s characteristics as an extraordinary leader. His methods struck a strong chord with me because I noticed some uncanny parallels between Mr. Mulally’s style and the one I wanted our company, TTF Aerospace, to experience. Let’s be clear, I have never considered myself anywhere near the same league as Alan Mulally. I spent many hours and years and trying to learn these principles, and while some of it came fairly easily, there are other things I may never master. Learning his views, though, is strong confirmation I’m thinking about leadership in the right way.

There are some parallels that make it fun for me. To begin with, it’s rare for an engineer to also have good people skills. I developed some of those skills from observing my parents, other professionals, and reading. People have commented I do not act like an engineer. My internal answer is, that’s because I’m really not one. I tried harder to develop good response skills when I read Stephen Covey’s belief that, “Between stimulus and response is our greatest power – the freedom to choose.” If my response is thoughtful rather than reactionary, I preserve for myself the ability to be a far more effective communicator, motivator, teacher and leader. It’s an axiom of which I need to constantly remind myself.

Hoffman also illustrated Mulally’s success at assembling all the various departmental disciplines into a cohesive project team. It always seemed obvious to me everyone should have input into how something is designed, built and serviced. Not being an engineer by education, it may be easier for me to see that. It’s self-evident a mechanic knows more about how best to put things together, and the purchasing guy knows which of his vendors are best suited for certain parts, and the sales or project guys best understand the customer’s expectations.

First off, no project runs perfectly. It’s simply not humanly possible. So, creating a common method for the various disciplines to communicate is essential to the team concept of mitigation and problem solving. Mulally learned to extend the concept of the traffic light project management matrix through to the very top of his organizations. Each department, including finance, marketing, sales, operations, engineering, manufacturing, etc., had to provide matrix-based status reports with standard terms and common definitions highlighting all aspects of their departments. This common language allowed every executive to have visibility of what was happening in every other department, to see how that affected his department, and to proactively think about how to facilitate solutions. It was transparency at its finest. Using Mulalley’s mantra, “you can’t manage a secret,” they promoted the early identification of problems, timely decision-making and the notion all hurdles can be overcome together.

Fantastically, I also found there were some correlations of expressions between TTF and Mulally. Some of them are a bit uncanny, if not a bit spooky:

Mulalley’s Four P’s: Performance, Product, Process, People. TTF’s Four P’s: People, Parts, Paperwork, Performance. It was on a banner in our manufacturing plant for years.

During an introduction with Ford executives, Chief Technical Officer Richard Perry-Jones noted that Mulally wasn’t familiar with the auto business by saying, “We appreciate you coming here from a company like Boeing, but you’ve got to realize that this is a very capital-intensive business with long product development lead times. The average car is made up of thousands of different parts, and they all have to work together flawlessly.”

To that Mulally smiled and replied, “That’s really interesting. The typical passenger jet has four million parts and if one of them fails, the whole thing can fall out of the sky. So I feel pretty comfortable with this.”

While I was helping Heath Tecna as a consultant at Boeing in 1998, a transplanted Detroit automotive engineer complained it should be easier to get things done because cars were so much more complicated than planes. I replied, “Yeah, you’re right. A vehicle with four thousand parts operating in two dimensions is obviously more complex than one requiring four million parts operating in three.”

Notice Mulally’s sarcasm was way subtler than mine? That can be a problem for me sometimes.

His first week at Ford, Mulally attended meetings, asked questions and demanded yes-or-no answers. He tolerated no long-winded explanations or equivocations. Many times I’ve halted people giving answers by raising my hand: “I asked you a yes-or-no question. I don’t care how the watch was built or how we got here. Yes, or No. What’s the answer?”

Problems are opportunities to improve. That’s one we all need to believe.

Mulalley posted a list of 10 rules during his first top-level executive meeting at Ford. Among the rules was “Propose a plan, ‘find a way’ attitude.” I had adopted football coach Frosty Westering’s saying of, “Find a Way,” one of his motivational expressions that dated back to about 1970.

Mulalley “did not argue. He preferred to listen and let people dig their own graves…. But he had a built-in BS detector and a knack for exposing it.” We also let people go off in meetings and bury themselves. Once they were finished we would tell them why it didn’t add up, why their premise was faulty, or what they had overlooked. Like I used to say, “…just enough rope to hang themselves.”

“Negativity was something Mulally could not abide.” I have an aversion to negativity. I get upset about it. It’s a waste of time and it doesn’t provide a solution – it’s the equivalent of giving up. If someone wants the kiss of death from me all they have to do is be continually negative.

Before getting rid of an executive or employee, we often tried to figure out where they would best fit. Some people were moved a few times. Sometimes it worked, sometimes they self-selected out, sometimes it was evident their heart was not in it. Turned out, instead of cleaning house Mulally spent a fair amount of time figuring out where each of his executives would best fit.

In an interview with the Detroit News, Mulally warned the reporter not to make it “a scuzzy story. I’ll burn your house down!” Then he burst out laughing. I hate to admit it, but our company president, Phil, used the “I’ll burn your house down” phrase in the same way for years in warning someone not to screw him. It was a very interesting parallel until Phil became unhinged.

People often try to reduce leadership to a formula, or set of formulas. In truth, I think it’s an art and a tough one at that. Certainly, some people exhibit leadership traits and tendencies at an early age, but I believe true leaders are made, not born. It takes years to perfect the skills needed to be a good leader. Some of them can come naturally, but others are painstakingly won through hard lessons and a lot of effort. 

It seems to me leading begins as an internal drive to make a difference. Like anything, it needs to be nurtured. Anyone, young or old, who exhibits leadership qualities needs mentoring and encouragement. In the end, there are no accidental leaders. Unwilling, possibly; accidental, no.

Of course, not all leaders are good leaders. The poor ones might be in charge, but they are not leaders.

Leaders know when to subvert their egos to the good of the cause. Very often those who lead do not.

Leaders are active listeners, seeking first to understand before speaking. An ego cannot remain silent for long.

Leaders are often economical with words. The less one says the more people are apt to listen. Short speeches are almost always more powerful, Abraham Lincoln being one of the finest examples.

Leaders are not micro-managers. They delegate, mentor and utilize the skills of their people, promoting personal growth and a team environment. They show the way forward.

Leaders are humble and grateful, but they are also decisive and direct. They don’t tolerate poor or unproductive behaviors. They right wrongs, and demand commitment and performance.

Most of all, leaders are true to themselves and their mission, and are committed to their people and leading by example. 

Leaders possess a positive outlook and a ‘find a way’ attitude.

I endeavor to practice those things daily. Some days, of course, I’m more successful at it than others. It’s probably not news to anyone I’m a work in progress. And so life goes….

There’s one last thing many great leaders possess – charisma, presence, the ‘it’ factor. It’s not a requirement in the least, and though this one trait can overcome many character flaws it typically can’t hold court forever. Steven Jobs was volatile, intolerant, unforgiving, maniacal, and even cruel, but still people followed him and his vision. His resolve was so great few could deny the pull of such a visionary. But the accomplishment that advanced with it came at a cost greater than it otherwise might have been.

Charisma can capture a room and divine the future to enraptured followers, but by itself cannot lead for an extended time. There needs to be content behind the handsome face, or the smart ones soon discover there is no reward behind the curtain. Charismatic leaders tend to lead with the strength of their personality, rather than installing systems and processes throughout the company to carry it forward once they leave. Many CEOs who are constantly in the news are this type of leader. Charisma sells newspapers. Phil, TTF’s president, had charisma. Unfortunately, he didn’t possess an unshakeable adherence to the other important traits; he was not courageous, he was reckless.

Phil was an example of charisma as a source of power. His listeners often unconsciously ceded control. Charm, good looks and articulate expression are well-used allies for the clever power seeker. In business, these people are usually not difficult to identify, but in a corrupt company culture where politics and backstabbing are tolerated they can go far. The really clever ones, like Phil, learn the sociopathic skills of appearing inclusive while pursuing a purely personal agenda. In a culture where teamwork, company goal-oriented creativity, positive attitude and lack of ego are rewarded, however, the power seeker is typically found out or self-selected out. They can’t survive in such an environment.

It’s no secret power an also be vulgar, overbearing, insensitive and egotistical; always win/lose versus win/win. My experience taught me power only cares about increasing what it has – nothing else. It will deceive and fool as many people as need be to become more powerful. There is no moral imperative that drives it – it is, by itself, amoral. As Lord Acton noted in 1887, “Power tends to corrupt, and absolute power corrupts absolutely.”

Power combined with charisma, vision and compassion, however, is a virtually unbeatable combination. In concert with these other traits power is still less than subtle, but it nevertheless compels many to act for the common good in ways they otherwise would not. I think Winston Churchill, as portrayed in Boris Johnson’s book, The Churchill Factor, is a perfect example.

The question always remains, however; can humility control the constant and insistent draw of power? It’s the very rare person who can master the possession of power to its best and highest moral use, and do so for an extended period. As one climbs the corporate ladder of influence and final decision making, increased power is inextricably linked to the ascent. The question becomes will it be the power to rule, or the power to empower? Are they secure enough in their abilities to delegate and fragment power away from themselves? Will they become the mentor whose scepter is the moral imperative? I believe the real true display of power comes from those who give it away; that is, those who empower others. It can be a liberating experience for both sides and with that, strangely enough, everyone usually wins.

There are rarely any absolutes, however. It seems there will always be someone who tries to game the system. There is one consolation – they never last in an integrity-driven environment. They self-destruct, self-select out or are found out. Either way, as long as there are people throughout the system who remain true to the culture and stated goals, the corrupt leader will never last. They can do a lot of damage along the way, however.

It is difficult to create and maintain a culture. It requires diligence and people who understand whom to get and keep on the bus. If we infect our culture with too many culturally incompatible people, it will implode and we will destroy all we want to achieve. Certainly it can be regained, but it requires much work and housecleaning, neither of which is easy. TTF had such a catharsis when Phil resigned, we unraveled the maze of legal hazards, and then tried to piece it back together.

It’s up to a leader to keep their pulse on the workforce as much as possible. Some people lose their way. Maybe they get lazy, or incidents outside work change their perspective. It’s incumbent upon the system to hold these people accountable for their actions. Forward movement, however, and a willingness to compromise or concede error, only results from trust. As an employee, I trust my bosses will understand my situation and why things happened, and I trust they will listen and grant me consideration before they pass judgment. As an employer, I trust people to give me their best effort and attention and I trust them to be honest. If we start from there, satisfactory resolutions are possible. Sometimes, trust is so broken there can be no resolution but permanent separation. It’s another way of ensuring the right people remain on the bus.

There you have it – some of my thoughts on what I have learned about leadership. Most of them I stole from someone else. Lifelong reading and following your moral compass are probably the two most powerful assets anyone can possess. It’s especially true of leaders. A leader must do more and be more.

All quotes are from American Icon by Bryce Hoffman unless otherwise noted.