Alan Mulally On The Power Of Transparency

When Alan Mulally took the helm at Ford in 2006, the company was on the verge of collapse. A $17 billion loss loomed, quality had deteriorated, and market share was plummeting. By the time he left eight years later, Ford had not only avoided bankruptcy—without taking a government bailout—but had become one of the most profitable automakers in the world.

How did he do it?

Mulally didn’t just lead Ford’s turnaround; he fundamentally changed how the company operated. His “Working Together” leadership and management system, honed over decades at Boeing before his time at Ford, is a playbook every CEO should study.

At a recent CEO gathering, Mulally shared his insights on leadership, culture and decision-making. His message was clear: success comes from collaboration, transparency and a relentless focus on serving all stakeholders, not just shareholders.

The Foundation of Leadership: ‘Who You Are and What You Do’

Mulally believes leadership starts with self-awareness. “Who you are as a person is gonna have more to do with your success than anything else,” he said.

He credits his upbringing for instilling his foundational principles, including a strong belief in lifelong learning, respect for others, and the idea that “to serve is to live.”

His leadership system is deeply personal. “This is a book where we have recruited 35 different authors, famous people, to share with everybody what it’s like to develop what your purpose in life is,” he said, referencing Work is Love Made Visible, a book that influenced his thinking.

When asked why he always seems to be smiling, Mulally recalled a conversation with leadership expert Frances Hesselbein: “She said, ‘You smile all the time and you seem to like people.’ And I said, ‘Okay… but why me?’ And she said, ‘Well, because of who you are, but also what you do.’”

His philosophy shaped the Working Together system—a structured, disciplined and inclusive approach to running a business that he first developed at Boeing while leading the creation of the groundbreaking 777 aircraft. At its core, the system focuses on one compelling vision, a clear strategy, and a relentless implementation plan—all of which must be communicated and executed with total transparency.

The Power of Transparency and Trust

Mulally’s leadership system revolves around a few simple but profound principles, which he laid out in a document for his teams at both Boeing and Ford. They include:

• People first—love them up. Mulally is famous for telling his employees, “I love you all,” and he means it. “People say, ‘Alan, you’re the first CEO I’ve ever heard use the word love in a sentence.’ And I tell them, ‘I love humanity. I love human beings. And I love serving them.’”

• Everyone is included. Leaders must ensure that all stakeholders—employees, customers, suppliers, investors, dealers—feel like they’re part of the company’s mission.

• A single, comprehensive plan. Unlike many companies that juggle multiple, sometimes conflicting strategies, Mulally believes in clarity and alignment.

• Relentless focus on reality. “You can’t manage a secret,” he said. “If you have a red, bring it up. We can’t solve problems we don’t see.”

One of the most powerful elements of Mulally’s system is the weekly Business Plan Review (BPR) meeting. Every Thursday morning, the entire leadership team would gather—either in person or remotely—to review the company’s progress against its plan.

Each executive was required to present key performance metrics using a simple color-coding system:

• Green: On track
• Yellow: Issues identified, but a solution is in progress
• Red: Major problem—needs attention

When Mulally introduced this system at Ford, the first meeting was a shock. The company was hemorrhaging money, yet every single slide was green. “We were about to lose $17 billion, and apparently, everything was fine,” he recalled.

It wasn’t until Mark Fields, then head of Ford’s Americas division, finally turned one of his slides red—indicating a serious production issue in Canada—that things changed. Fields hesitated, fearing repercussions. After all, Ford’s past culture had punished those who admitted problems.

Instead of reprimanding Fields, Mulally clapped. “Thank you for the transparency, Mark,” he told him. “Now, what can we all do to help?”

That moment was a turning point. The following week, more red slides appeared, followed by discussions on how to fix them. Within weeks, the entire executive team had embraced the new culture of openness and collaboration.

CEOs looking to implement their own BPR meetings should take note:

• Keep it short and focused. (Mulally’s lasted just 90 minutes.)
• Ensure all functions are present. (Finance, HR, engineering, marketing, etc.)
• Use data, not opinions, to assess progress.
• Encourage psychological safety. Leaders must feel comfortable admitting when things aren’t working.
• Set up special attention meetings for urgent red issues.

Moving From ‘I’ to ‘We’

Today’s business environment is volatile, complex and often unpredictable. Mulally’s leadership principles are more relevant than ever.

His advice for CEOs:

• Define a compelling vision and a clear plan. If people don’t know where you’re going, they won’t follow.
• Create a culture of transparency. Problems will surface whether you want them to or not—better to deal with them openly and early.
• Lead with humility and service. “Move from ‘I’ to ‘we’ and from ‘me’ to service,” says Mulally. “It’s not about the CEO’s vision alone. It’s about creating a culture where everyone is working together for the greater good.”
• Include all stakeholders. Companies that only serve shareholders risk missing the bigger picture.

At the end of the day, Mulally’s philosophy boils down to one fundamental truth:

“It’s nice to be important,” he says, “but it’s more important to be nice.”