Leadership

Alan Mulally Module 3: Building Trust: Zero Tolerance

Alan Mulally

When it comes to turning around companies like Boeing and Ford, buy-in has to be 100% of heart, mind and spirit. 

That’s why former CEO Alan Mulally says trust is paramount to building the relationships and connections needed at every level to achieve such a monumental task. 

In this module, Mulally outlines what it takes to build that deep level of trust, and why there’s no tolerance for violating the process of Working Together. 

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No mean jokes 

As part of the Working Together Principles and Practices, Mulally insists on “no humor at anyone’s expense.”

The reason is two-fold, he says. One, “it’s never funny,” he says. But more importantly is that it can erode trust between the individual and the rest of the team, making them fearful to confide in you.

“If they feel like they’re going to be a victim, or be made fun of, then they’re going to be very careful about telling you what the real situation is,” he says. “And so they’re going to be careful about thinking, telling you about a red.”

This negates the culture you’re trying to set up, Mulally says. Remember: reds are gems. They’re opportunities to come up with innovative solutions, and the sooner they’re detected, the sooner they can be dealt with.

“But if they think they’re going to be a victim, then they’re not going to tell you, and then not deal with the issues as quickly and as efficiently as you can,” Mulally says.

Zero-tolerance policy 

In fact, actions like bringing up “reds” are crucial to the Working Together Principles and Practices, Mulally says. It’s part of the established rules, expected behaviors and cadence of communication everyone has agreed to follow. 

“We’ve all agreed that that’s how we’re going to act,” Mulally says, “And I absolutely believe that those behaviors and this process are going to work to create great products and services that are increasing productivity.”

And Mulally suggests a “zero-tolerance policy” when team members don’t follow those behaviors. In the past, Mulally has held up a laminated card outlining the expected behaviors (at Ford, he called it the “One Ford Plan”) as a gentle reminder to others to get back on track.   

“It doesn’t take very much for people to stop the behavior, whether it’s they’re on their phone, they’re on their computer — they’re not paying attention,” he says.

The policy is necessary to curtail distractions, Mulally says. For example: The business plan review. When leadership team members are presenting, other team members need to pay attention. 

“The comments [the other members] are making are for clarification, maybe, or support, but they’re all taking notes, ’cause they know what they’re going to be working on to help that person turn [the issue around], ’cause it’s all about us now,” Mulally says.

Because it’s in those moments where challenges are met and solutions emerge, Mulally says.

“I and the leadership team turn into coaches and facilitators,” he says. “Because this is the era of the knowledge worker and we have all these knowledgeable people, and our job is to facilitate and nurture this culture.”

Related Resources 

Alan Mulally on leading transformation


Category : Leadership

Topics : Peak Performer, relationship building, trust

About the Author: Vistage Staff

Vistage facilitates confidential peer advisory groups for CEOs and other senior leaders, focusing on solving challenges, accelerating growth and improving business performance. Over 45,000 high-caliber executi

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