1. How does Alan Mulally’s “focus on four things” help him with strategic planning for Ford? Do you believe it made a difference in the firm’s decision to decline the federal loan?

2. Mulally emphasizes the importance of having every employee understand the firm’s mission. How might this understanding help employees contribute to the company’s performance?

Recently, when the other major U.S. automakers accepted federal funds in order to stay in business, Ford Motor Company—in the voice of CEO Alan R. Mulally— said no. The federal funds were to come in the form of short-term loans, which Ford determined that it didn’t need at the time to survive. Several years earlier, the firm had faced financial decisions and restructured its debt in such a way that, when the economy slowed down, Ford didn’t.

Mulally observes that this timing was a bit of luck and a bit of strategic planning. “I go back to the fundamental point of view that the Ford Motor Company has taken about the future going forward, and the actions that we have taken to create that future,” he observes. “[Several years] ago we decided that fuel efficiency was going to be very, very important going forward, along with quality and safety and good value. We also decided that we wanted to provide customers with an absolutely clear vision of Ford and focus on the Ford brand.” As part of this overall strategy, Ford sold off its luxury brands Aston Martin, Jaguar, and Land Rover. Meanwhile, it invested in the development of moderately priced, fuel-efficient cars and trucks. Ford took on some extra debt at the time as a hedge against a recession—and had the cash on hand when the other two automakers didn’t.

Decisions like this are typical of the responsibilities that are faced by top managers like Mulally. They require strong leadership qualities that include a willingness to persist during tough times. But Mulally wasn’t always CEO of Ford. His first management position was as an engineering supervisor at Boeing. He overmanaged his employees so closely that one engineer finally quit. Mulally says that this was an important experience early in his management career. He realized that his job as a manager was “to help connect people to a bigger goal, a bigger program and help them move forward to even bigger contributions. That experience stayed with me forever on what it really means to manage and lead.”

Mulally believes that every employee has something to offer an organization and that each worker must be clear about the firm’s mission. “I think the most important thing is coming to a shared view about what we’re trying to accomplish,” he says. “What are we? What is our real purpose? And then, how do you include everybody so you know where you are on that plan?”

As the company’s leader, Mulally says that his job is to focus on four things: (1) the process of connecting his firm to the outside world, (2) keeping track of the firm’s identity in the marketplace, (3) balancing short-term objectives with long-term goals, and (4) the values and standards of the organization. Mulally notes that keeping his eye on these four variables keeps Ford on the road. “I’m the one who needs to focus on those four things, because if I do that, the entire team will have a collective point of view and an understanding of all four of these areas.” When asked what career advice he would give to young recruits to the business world, Mulally answers without hesitation: “Don’t manage your career. Follow your dream and contribute.”