How to Persuade Your Way Out of an Impossible Crisis
Lee Iacocca was quite the figure. Rising through the ranks to become President of Ford Motor Company, Lee’s leadership was responsible for some great achievements. He was the visionary behind the Ford Mustang and led Ford through some of their most profitable years in it’s history.
Lee’s performance should have left him bulletproof, but his relationship with Henry Ford II was a hot mess. Henry was an aristocrat. Lee was the son of Italian immigrants. Henry was the corporate shadow. Lee was the loud, cigar-smoking, media celebrity. Henry tried to push Lee out, but Lee’s performance blocked several attempts.
When Henry finally gave the Board a “him or me” ultimatum and pushed Lee out, Lee demanded an explanation. Henry’s famous response was simply:
"Well, sometimes you just don't like somebody.”
It’s important to set the scene because in following his firing from Ford, Lee joined Chrysler as President in 1978 with a massive chip on his shoulder.
The road ahead wasn’t an easy one. Chrysler was heading toward bankruptcy and the American economy was a mess with double-digit inflation and interest rates yo-yo-ing between 12% and 21%.
But by the time Lee delivered a speech at the June 1981 Annual Shareholders Meeting he had moved Chrysler from a company on verge of total liquidation to what he called a…
“fighting organization” that was “on the leading edge of everything that is good with America.”
In this speech, Lee showcases that Chrysler is no longer a dying giant but a totally new organization that’s already survived the impossible.
“Yet out of this unprecedented economic crisis, Chrysler Corporation continues on the road back to profitability. Our sales are up, month after month. Our new products are gaining an increasing percentage of the market. Our plants have been working overtime. Our quality is well above two years ago and climbing. We've cut our breakeven point to nearly half of what it was.”
And he makes that case that the new Chrysler is beacon for what’s ahead…
“Those who once warned the nation of the dangers of catching the Chrysler disease are now urging the rest of the country to take the Chrysler cure. And for good reason. Just as Chrysler was once on the leading edge of everything that was going wrong with America, we are now on the leading edge of everything that is good with America.”
You can read Lee’s full letter hear, but before you do, let’s explore what he’s trying to do.
What idea is Lee trying to sell?
At it’s most simple core, Lee is telling shareholders and employees to hold fast.
Hold fast shareholders, because walking away now would waste the sacrifice you’ve made.
“All the elements for our success are now in place. We have the plan. We have the products. We have the plants. And we have the people. I am convinced we can’t miss.”
Hold fast employees, because this isn’t management versus you. This is us together versus the competition and the economy.
“We have a strong sense of unity and cooperation. We know how to sacrifice. And we are not afraid to ask for help and to provide it in return.”
Hold fast, because when the economy turns favorable, Chrysler is going to become the biggest and best car company in the U.S. and you don’t want to miss the ride.
“We're going to become the pre-eminent automobile company of the 1980's…”
So what device does Lee use?
The device Lee uses in his speech was formalized by Aristotle nearly 2,400 years ago. It’s known as the Aristotelian Triad, the Rhetorical Triangle, or more simply, the classic art of persuasion.
To over-simplify, imagine a stool with three legs. If one leg is missing or weak, the stool falls over. The three legs are three modes of persuasion defined by Aristotle as essential for persuasion.
Ethos, which answers, “Why should I trust you?”
Pathos, which answers, “Why should I care about this?”
Logos, which answers, “Does this make sense?”
Effective communication uses all three of these modes, often in a specific cycle…
Ethos — the speaker’s authority — gets the audience to open the door and listen.
Pathos — passion and emotion — helps the audience care about the outcome.
Logos — logic and proof — gives the audience a logical safety net for belief.
And when we break down Lee’s speech, what we find is this really beautiful pattern of use of all three legs of the stool…
First, the intro has a near perfect mix of logic, authority, and emotion, with a slight bias toward passion and emotion. Remember, this was personal for Lee on many levels.
Next, the main argument is seven key points primarily driven by logic, punctuated by bits of authority.
Finally, the conclusion alternates between emotion and authority, back and forth, like a teeter totter.
What can we learn?
Check out Lee’s speech here. You can select the modes of persuasion and see how his speech is shaped by all three.
What’s important to learn from Lee’s speech is that persuasion is a system. It takes all three pillars to lead without force.
Lee couldn’t force the union to take a pay cut. Lee couldn’t force the bank to forget debt. But he could persuade them, and he did.
