5 lessons from the leadership of Ford CEO Alan Mulally

There are two opposing kinds of CEOs, which Forbes contributor Bryce Hoffman classifies as Jack Welches and Alan Mulallys.

The first group, modeled after GE CEO Jack Welch, is the type of leader with a "fist-pumping, take-no-prisoners style of leadership," according to Mr. Hoffman. The second group is modeled after former president and CEO of Ford Motor Company, Alan Mulally, who led the automotive company's turnaround beginning in 2006.

According to Mr. Hoffman, the world could use a few more Alan Mulallys. Here are five lessons hospital and health system executives can take away from the Ford executive, as presented by Forbes.

1. Flatten the organization. Mr. Mulally chose to eat in the cafeteria rather than the executive dining room so he could talk to employees at all levels of the company, Mr. Hoffman notes. He personally responded to employee emails and frequently acted on their ideas and concerns. Hospitals and health system leaders can follow in the automotive CEO's lead by communicating on a daily basis with staff from all levels, especially the clinical team, and taking the opportunity to listen to their ideas and concerns.

2. Help employees work together. Mr. Mulally did away with Ford's employee ranking system in favor of rallying employees around a cause. He collaborated with the United Auto Workers union, as well as suppliers and dealers. By eliminating rank, Mr. Mulally eliminated competition, but helped establish an environment of collaboration.

3. Establish ground rules to foster a team-based atmosphere. Mr. Mulally was a big proponent of team-based leadership and cross-functional communication. He implemented a matrix organization with cross-sectional representation of the company and established the following rules: "people first," "respect, listen, help and appreciate each other," and "no joke's at anyone else's expense," according to Mr. Hoffman. This helps promote collaboration across the organization.

4. Consolidate and specialize. Rather than cut the fat and rid Ford of money-losing operations, Mr. Mulalley looked at Ford differently. He sold off profitable operations in order to consolidate and focus on what Ford does best. Hospitals and health systems can benefit by focusing and growing an expertise to help create a brand of care with a focused mission.

5. Talk — and listen — frequently. Mr. Mulalley was also a fan of leveraging data and bringing in leadership to talk about this data on a weekly basis, as part of his Business Plan Review. Hospital and health system leaders should take the time to analyze how their organization is running and identify current and future challenges and opportunities. But for top leaders, the most important ideas can be gleaned by simply listening. "I talked the least in those meetings," Mr. Mulally told Mr. Hoffman. "It's important to seek understanding before seeking to be understood."

Mr. Hoffman is the author of American Icon: Alan Mulally and the Fight to Save Ford Motor Company.

 

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