SUMMARYCarlos Ghosan, COO of NissanIdentification of problemsCarlos Ghosan Management PhilosophyGhosn form Cross Functional TeamsLayoffs and plant closures
SUMMARY (CONT…) Nissan Revival Plan (NRP) • Keiretsu partnerships • Reorganization • Performance Evaluations and Employee Advancement Implementation of “Nissan 180”
NISSAN’S STRUGGLE Focus on production rather than customers Weak product portfolioJAPANESE MARKET Keiretsu Investment Employee Advancement Risk- averse attitude
NATIONAL CULTURAL ISSUES Consensus decision making Informal meetings (NEMAWASHI) Promotion for most knowledgeable & experience (NENNKOU-JYORETU) Finger pointing rather than acceptance Japanese business tradition
CORPORATE ISSUES Follow up was not effective Communication and coordination problems Product oriented Lack of vision Lack of urgency
CARLOS GHOSN LEADERSHIP STYLES Achievement-Oriented. Participative. Supportive. Directive.
CARLOS GHOSN ACHIEVEMENTS Nissan began to operate profit under his leadership. Resolved Communications Obstacles. Designing CFT (Cross Functional Teams) Successfully redesigning Performance Evaluation and Employee advancement.
PHILOSOPHIES OF MANAGEMENTFundamental principles1. Transparency2. Emphasis on Execution3. Communication
FEELING OF NISSAN PEOPLE ABOUT CARLOS GHOSN Respect for their culture Opportunities & career development Give credit of all success Accept & participate in management process Embrace new ideas
ENLISTING EMPOYEES SUPPORT Walk around in entire company Met every employee & shaking hands Discussions for new ideas Address issues of lower & middle management to top level management Take recommendations & opinions of Nissan people
RESISTANCE TO CHANGEThe main resistance is the culture background under this there are several resistance: Promotion on seniority Basis Risk averse Protecting career development No coordination between departments Problem with other department No tradition of Bankruptcy Difference in words and work
TO RESOLVE RESISTANCE Highest achievers got the highest rewards Performance based promotion Address issues about communication among employees Involvement of employees in decision making process Setting up Cross Functional Teams
CULTURE & NISSAN Part of the culture was one of sub optimization with focus only on each individual’s own department with little regard for or understanding of the whole.InconsistencyDeviationsProblems
IMPACT OF CULTURE AT NISSAN PROBLEMS From management side: • Lack of vision • Ignoring customers Further more, Ghosn identifies: • Lack of profit orientation. • Lack of sense of urgency. • No shared vision. • Lack of Cross functional implementations.
SOLUTIONS TO NISSAN’S CULTURE PROBLEM What they have did? – CFTs (cross functional teams) What we suggests? – Open communication – Horizontal to vertical hierarchy – Informal meetings