This article is part of a series called Surface Tension - What invisible force holds your organisation together—and might suddenly tear it apart? You can find an index and introduction to all articles when they are published here .
The most effective leaders develop what we can call "X-ray vision"—the ability to see underlying patterns that aren't apparent on the surface. They recognise that persistent problems aren't just technical challenges but signals about the system's deeper dynamics.
Alan Mulally's turnaround of Ford
Ford was in its darkest hour. While facing severe financial challenges, Mulally arrived in 2006, the year that Ford had lost $12.6 billion. Their lineup of cars was uninspiring, dominated by legacy brands with little new or exciting.
Despite what he saw on the surface, Mulally recognised that Ford's deeper issue was cultural—specifically, a culture where bad news was hidden and problems denied until they became crises.
Rather than implementing another restructuring plan, Mulally instituted the "Business Plan Review" (BPR)—weekly meetings with his senior leadership team. The centrepiece was a colour-coded system: green for on-target initiatives, yellow for concerns, and red for problems. In Ford's previous culture, showing anything but green was career suicide.
In his first few BPR meetings, every report was green—despite the company heading toward a $17 billion loss. When one executive finally took the risk of showing a red slide, Mulally applauded. This small gesture shifted Ford's psychological contract: surfacing problems was now safe and valued.
Mulally didn't lecture about transparency or mandate cultural change. He created a regular practice that made the invisible visible. Within weeks, the leadership team's reports showed a realistic mix of colours, and Ford began addressing previously undiscussable issues.
By 2009, Ford was the only Detroit automaker to avoid bankruptcy and a government bailout. It had returned to profitability, posting $2.7B in net income. By 2014, Ford was consistently profitable, had regained public trust, and its stock price had rebounded.
Bridgewater
Bridgewater Associates offers another striking example of changing culture through practice rather than pronouncement. Faced with repeated failures driven by hidden mistakes and ego-driven decisions, founder Ray Dalio introduced radical transparency—not as a value, but as a system.
Meetings were recorded, mistakes were logged, and tools like the Dot Collector allowed employees to rate each other in real-time during discussions.
These practices, though initially jarring, created a culture where truth was prioritised over politeness, and psychological safety came not from comfort but from clarity. Just as Mulally's applause for a red slide signalled a new norm, Dalio's systems made it safe—and expected—to surface uncomfortable realities.
The result was not just better decision-making but a shift in how power, performance, and learning operated inside the firm.
Implementation insight
Create a dedicated session with your executive team away from daily operations—ideally quarterly—where you review your progress over the previous months and set priorities for the next quarter. In addition to whatever other objectives you set for the session, make one to "Identify and address recurring underachievement."
In the session, identify recurring patterns that persist despite rational attempts to address them. Start small by highlighting just one or two patterns that warrant deeper examination.
For each pattern, ask your facilitator to pose this deceptively simple yet powerful question:
"What benefit might we unconsciously gain from maintaining this pattern?"
This question often reveals surprising motivations lurking beneath rational explanations.
Once the quarterly session is working well, consider implementing a structured forum similar to Mulally's Business Plan Review, where problems are deliberately made visible through a simple tracking system. The psychological key is consistently praising candour about challenges rather than the norm of only rewarding success. That is worth repeating, consistently praise candour rather than only praising success
When these patterns generate resistance, dig deeper with questions like:
- "What might people fear would happen if we succeeded?" or
- "Whose power increases or decreases if we implement this change?"
These questions reveal the hidden anxieties and power dynamics that rational analysis typically misses.
Periodically invite an external perspective—perhaps from a customer, partner, new employee or coach—to share their observations about your organisation. The gap between how you see yourselves and how others perceive you often highlights blind spots that internal discussions alone cannot surface.
Remember that developing X-ray vision involves creating psychological safety where previously invisible dynamics can be named and addressed. The goal isn't just to identify issues; it is to strengthen your team's collective capacity to see beneath the surface—a competitive advantage few organisations develop.