Assignment brief for Leader Redesigning – Nissan

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 Assignment for Leader Redesigning – Nissan
 Assessor Name : Dr. Aly Al-Alamy
 Presented by : Mohyee Ali Abdallah
 The case presented is :
“Redesigning Nissan (A) Carlos Ghosn (CG) Takes Charge”

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Leadership plays a huge role in such a dynamic business environment. Economic, political, and
cultural impact on business lately assure the impact that leadership styles may assume on the
organizational performance
Task 1:
The role of management and leadership in an organization can lead it to develop and implement
successful strategies in different economic conditions while other organizations are unable or
unwilling to adapt their strategies
Section 1: The link between strategic management and leadership
Strategic management includes the following:
1. Strategy formulation, which includes developing a vision and mission, identifying an
organization‟s external opportunities and threats, determining internal strengths and
weaknesses, establishing long-term objectives, generating alternative strategies, and
choosing particular strategies to pursue.
2. Strategy Implementation: “action stage” of strategic management. And means also
mobilizing employees and managers to put formulated strategies into action.
3. Strategy Evaluation: It is the final stage in strategic management, and is responsible for
showing managers when particular strategies are not working well. Managers desperately
need and its activities are, reviewing external and internal factor, and measuring
performance and at the end taking corrective actions
So the strategic management is the art and science of formulating, implementing ,and
evaluating cross-functional decisions that enable an organization to achieve its objectives.
Leadership entails changing an organization and making active choices among plausible
alternatives, and depends on the development of others and mobilizing them to get the job done.
“There are almost as many definitions of Leadership as there are persons who have attempted to
define the concept.” (Stogdill, 1974)
Strategic leadership: Strategic management is a leadership responsibility by appearing the
capability to get people to successfully engage in the continuous change, refinement, and
implementation of strategies.
Strategic Leadership: is the collective actions of formal and informal leaders acting together to
influence organizational success/ process of influencing people for achievement of certain goals in
a given situation (Pasmore, 2009).
The evidence from Nissan case for the link between strategic management and leadership:
Carlos Ghosn did the following steps when he took the wheel:
 He started with a perfect principle when he said “To make deep changes inside a company you
don‟t need loads of people, but rather the right catalysts at the right places”

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 He chose people around 40 years old, experts in their field, very open minded, and coaches
 There would be no external consultants
 He had a clear objective when he said “we are going there to help fix Nissan, that‟s all
 He avoided any pessimistic opinions internal or external and keep going
 Clear messages to employees that he needs them to continue his plan yet they should follow his
plan otherwise there is no place for them
 Clear messages outside the organization outlining his current & future plan with its boundaries
 Transparency; Broadcasting all his speeches inside the organization globally
 He issue bonds with warrants
 Union the language of the organization to be English only even for his old guard
 He made mix team “Renault-Nissan” to establish a dictionary of essential terms for some keys
words were not understood in the same way by different Japanese people.
 He set up cross-functional teams (CFTs) to generate ideas and recommendations for change
 He destroyed the lack of communications between borders and hierarchical lines
Section 2&3: The Impact of Leadership styles on strategic decisions:
There are different styles of leadership, each springing from different components of emotional
intelligence:
 Democratic Leadership … Participative leadership, leaders often ask for input from team
members before making a final decision.
 Autocratic Leadership … Have significant control over staff, rarely considers worker
suggestions or share of power.
 Laissez-Faire Leadership … Characterized by their hands off approach, allowing
employees to get on with task as they see fit.
 Transformational Leadership … Typically inspire staff by creating an environment of
intellectual stimulation.
 Transactional Leadership … Establishes a clear chain of command utilizing a carrot &
stick approach to management activities
 Bureaucratic Leadership … Implemented in highly regulated environments, with strict
adherence to the rules are important.
- As we see different styles have different type of impact on strategic decision and
organization‟s performance.
- For instance if we look at the democratic style of management and leadership, in this style
management always consult and discuss with their team which makes them feel more
responsible and motivates them to work hard.
Adapting management and leadership styles in different situation:
Bureaucratic leaders work follow rules rigorously, and ensure that their people follow procedures
precisely.

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This is an appropriate leadership style for work involving serious safety risks (such as working
with machinery, with toxic substances, or at dangerous heights) or where large sums of money are
involved. Bureaucratic leadership is also useful in organizations where employees do routine tasks
(as in manufacturing)
The evidence for Impact of Leadership styles on strategic decisions from Nissan case and
how leadership style can be adapted to different situations:
Leadership Styles Description Evidence from Nissan case
Autocratic Style THE LEADER
 Focused power
 All interactions move towards him
 Decision making and authority for
determining policy.
 Procedures for achieving goals,
work tasks and relationships,
control of rewards or punishments.
When Ghosn took the wheel he started
with a packages of Autocratic decisions
such as :
1. downsized the board from 37 members
to 10
2. Union the language of the organization
to be English only and must be learnt or
the employee will be out.
3. There would be no external consultants
4. He chose people around 40 years old,
experts in their field not the style of lazy
workers
5. he decided for his CFTs that : No
sacred cow, no taboos, no constrain
Laissez Faire  Observes that members of the
group are working well on their
own
 Makes a decision to pass the
 focus of power to members
(freedom of action)
 Members are left to face decisions
which rightly belong with the
manager.
1. Yoshikazu Hanawa assumed a more
ambassadorial role as President and
Ghosn gave him absolute freedom to
select the Japanese members of the
executive committee.
2. He selected 10 persons where former
Renault managers familiar with the
process proper the CFTs in order to avoid
endless debating.
And to evaluate how leadership styles can be adapted to different Situations we can say that to
lead a success organization you need as a leader to know which leadership style to use and with
whom and when, because business environment is subject to fast-paced economic and social
change, also problems in works can change the style of leadership
Such as shown in Nissan case, Carlos Ghosn start with an Autocratic way by make many
decisions by his own to put basic steps to start with
And when he chose his team and his partners he started to change his leadership style to Laissez
Faire by giving them the authority to select the committee members by their own.

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Task 2: Leadership Strategy
Section 1: The impact that selected theories of management and leadership have on
organizational strategy.
There are many theories for management and leadership such as the following:
1. Transformational leadership
2. Transactional leadership
3. Charismatic leadership
4. Contingency theory
5. Situational theories
But in Nissan study I have chosen only Two as follows :
1. Transformation 2. Transactional
Theory Information about the theory Evidence From Nissan
Transformation - A transformational leader is (Bass,
1985) someone who identifies the
needed change, creates a vision to
guide the change through
inspiration, and executes the change
with the commitment of the
followers.
- Charismatic & visionary
- Fixable and innovative
- He made mix team “Renault-Nissan” to establish a
dictionary of essential terms for some keys words
were not understood in the same way by different
Japanese people.
- Intensive language courses for all Nissan
employees
- Ghosn did not just speak; he also listened. He
surprised workers by strolling up and down the
assembly lines and asking questions, not just of
senior engineers and managers but also of workers
themselves.
Perfect
Leadership
AutocraticLaissez
Faire
Bureaucratic

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Transactional - Transactional leadership appeals
to the self-interest of followers. It
is based on a relationship of
mutual dependence and an
exchange process of: „I will give
you this, if you do that‟.
- They give followers rewards and
in exchange they expect service,
loyalty and compliance.
- Focus on the use of rewards and
punishments in order to achieve
compliance from followers
- Ghosn put a stock option incentive plan
- Reward is clearly related to the operating profit of
the company or affiliates and the salary to be
associated with performance
- Ghosn and management gave a limited time for
staff to change their attitude
Section 2 – Create a Leadership strategy that supports organizational direction
Strategic Leadership :
1. An ability to influence those with whom one works.
2. The leader understands the emergent strategy process.
3. A shared vision of what the organization is to be.
4. Agreement among senior manager & board members of opportunities and threats.
There are five factors help to create a strong leadership strategy :
1. How many leaders do we need? What are the current and projected leadership positions on
the org chart? What about informal leadership positions?
2. What characteristics should individual leaders possess? Who needs to be represented or
included?
3. What skills, competencies, knowledge, and behaviors are needed to implement the business
strategy and create the desired culture?
4. What capabilities do we need so we can act together in groups and across boundaries to
implement strategies, solve problems, respond to threats, adapt to change, or support
innovation?
5. What are the key attributes of the desired leadership culture? What leadership practices are
essential, such as boundary-spanning, employee engagement, or creating opportunities for
others to lead?
When all above questions are fulfilled we can start to create our strategy by the following steps:
1. The first step to review the business strategy for implications for new leadership
requirements, This analysis usually requires a team of experts composed of some people
who know the business intimately and others who are familiar with processes for acquiring,
 And that what Ghosn did in Nissan Case when he chose people around 40 years old, experts
in their field, very open minded, and coaches
2. Creating a strategy that generates number of recommendation to ensure the application of
the current situation and to reach the desired future.
3. A developed strategy is then formulated to produce the desired future state with
identification to the talent management processes implication.
4. Business & Organization development will reveal the strategy status whether it is
successful or not and what are the changes or modification needed.

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Task 3:
Section 1 – in light of Nissan study, use a ppropriate methods to review current leadership
requirements
SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis for Carlos Ghosn &
Nissan as a company
Strength Evidence in Nissan
 Charismatic and visionary
 Clear & transparent speeches
 Inspire followers to transcend their self-
interest for the organization
 Appeal to followers' ideals and values
 Stimulates followers intellectually, arousing
them to develop new ways to think about
problems
 Flexible and innovative
 Motivate followers by appealing to their own
self-interest
 Motivate by the exchange process. Focuses
on the accomplishment of tasks & good
worker relationships in exchange for
desirable rewards
 Learning Japanese
 Weathered the criticism of disappointed
shareholders, pledged for change and
conveyed confidence to Nissan employee
 Working long hours with hectic schedule to
set an example and to lessen complaint of
hard long working hours
 Down to earth attitude by direct in his dealing
and enthusiastically shaking hands regardless
of rank
 Leaving the authority to Monlonguet - CFO,
to sell off Nissan interests in dozens of
associated companies and banks
 Eliminate the divisional presidencies in
Europe & North America – as he viewed it to
be conducive to crossed communication and
unclear leadership
Weaknesses Evidence in Nissan
 Long working hours affecting personnel life.
 Autocratic Style & Democratic and Laisser-
faire style.
 Misinformation and not gathering enough
data to build a firm strategy.
 Long working hours and hectic schedule that
most probably affecting his personnel life
 At the beginning very Autocratic leadership
style and too much dependency on him
 Later his democratic and laisser–faire style
imposed negative effects on medium term and
on long term. This was mainly due to the
relaxed attitude he encourages within his
companies which might imply that some
workers not to take their jobs seriously
Opportunities Evidence Solution in Nissan
 Growing global demand for environment
friendly vehicles
 Increase in Fuel prices
 After financial recovery – introducing 22 new
models over three years pan but with
awareness of the fragile financial status of
Nissan
 Increasing fuel prices. For years, Nissan has
been favoring fuelefficient cars with hybrid,
hydrogen or electrical engines. Increasing
fossil fuel prices encourages the consumers to
buy such cars and Nissan is already in
position to offer many car models with
various environment friendly engines Threats

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Threats Evidence Solution in Nissan
 Decrease in fuel prices
 Global competition in automotive industry
 Rising raw material prices
 Natural disaster
 Foreign Exchange Rate fluctuation from Yen
to $
 Downfall in Nissan performance due to
whether employee would maintain the same
sense of purpose GHOSN resignation
 Decreasing fuel prices: There is high
possibility that future fuel prices will drop, as
more shale gas fuels will be extracted. For
this reason, hybrid, hydrogen or electric cars
may become less attractive to cost conscious
consumers
 Continuous monitor of market and
competition development with clear focus on
priorities and a clear plan by which to execute
those priorities
 Eight concept vehicles showing its innovation
potential and was presented at the Tokyo
Motor Show to unveil its new global identity
campaign – the fruit of a joint venture
between its three former advertising agencies
to service Nissan‟s account worldwide
 Rising raw material prices. Rising prices for
raw metals will lift the costs for auto
manufacturers and result in squeezed profits
 Natural disasters: The business has
manufacturing facilities in Japan, Thailand,
China and Indonesia. These countries,
including others, are often subject to natural
disasters that disrupt manufacturing processes
and results in lower production volumes and
losses
 Appreciating yen exchange rate: Most of
Nissan‟s revenue comes from foreign
countries. Appreciating yen exchange rate
against other currencies means lower profits
for the company
 Ghosn focused on mainly making sure that
full execution of the Nissan Revival Plan
continues to take place. At the same time
planning a second phase growth strategy.
While both plans should perform in harmony.
Section 2: Section 2 – Create recruitment criteria for CEO position, reflects the leadership skills
required for this position in an organization of your choice
Leadership 20 skills and application to Nissan case study - Carlos Ghosn
Current Skills sequenced according to
importance
Related achieved skills Comments
1. Culturally adaptable – adjusting to
ethics/regional expectation regarding Human
resource practices and effective team process
1. Learned Japanese and undertaken a three day
course to understand the do‟s and don‟ts of the
Japanese culture

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Current Skills sequenced according to
importance
Related achieved skills Comments
2. Strategic planning – translating vision into
realistic business strategies, including long-term
objectives
2. GHOSN endeavors & efforts was all toward
achieving this point but have to add; GHOSN
focused on mainly making sure that full execution
of the Nissan Revival Plan continues to take
place. At the same time, planning a second phase
growth strategy. While both plans should perform
in harmony
3. Resourcefulness – working effectively
working with top management
3. After changes in organization structure where
CFTs has submitted the required, GHOSN
insisted on keeping the CFTs as an integral part
of the management structure to serve as
watchdogs for the implementation of the plan and
to look for new ways to improve performance. A
tenth team was added to cover investment costs
and efficiency. The CFT pilots continued to meet
with GHOSN at least monthly, serving as relays
to the rest of the workforce but also keeping him
informed of progress.
4. Managing change – using effective strategies
to facilitate organizational change
4. Please refer to Task 2 – Section 2 – Evaluation
& Control page 22 from bullet point 10 onward
5. Participative management – involving others
in critical initiatives
5. Please refer to Task 2 – Section 2 – Evaluation
& Control page 22 bullet point 5 & 6
6. Inspiring commitment – recognizing and
rewarding employees‟ achievements
6. Included in Above point and requesting that
1,500 profiles of Nissan employees be posted for
consideration in the CFT – he wanted to make
sure that the selection was based upon talent and
commitment to Nissan
7. Employee development – coaching and
encouraging employees to develop in their
career
7. Intensive language courses for all Nissan
Employees. Bonus related to performance and
not by seniority
8. Leading people – directing and motivating
people
8. GHOSN continuously praised the loyalty and
enthusiasm inside Nissan and pressed for top
results. When two managers presented their
ideas for a new information system at Nissan,
GHOSN challenged them to prove that their
solution could be bettered by outside consultants
9. Respecting individuals‟ differences –
effectively working with an treating people of
varying backgrounds and perspectives fairly
9. GHOSN clear statement like: “There is a place
for every single person in this company who
wants to give the company a chance for
10. Self-awareness – recognizing personnel
limits and strengths
10. Definitely exist otherwise would not have
achieved all what was
Future skills that need to be achieved Related non achieved skills Comments
1. Balancing personal life and work –
balancing work priorities with personal life
2. Confronting people – acting
resolutely when dealing with
problems
1. Long working hours and heavy working day
agenda. Average working hours 11 hours
2. “The old guard was told – you speak
English. Learn it immediately if you must or
you are out” – Harsh statement could have

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3. Decisiveness – preferring doing or acting
over thinking about the situation
4. Doing Whatever it takes – persevering
under adverse conditions
5. Managing one‟s career – using
professional relationship (such as
networking coaching and mentoring to
promote one‟s career
6. Being a quick learner – quickly learning
new technical or business knowledge
7. Compassion & sensitivity – showing
understanding of human needs Putting
people at ease – displaying warmth &
using humor appropriately
been more considered considering his age
consequently his learning capacity time
frame
3. Not applicable to Nissan case
4. Not applicable to Nissan case as there is
continuous need to listen and discuss with
team
5. Due to time constraint not applicable to
GHOSN
6. Not applicable in Nissan case as he
appointed calibers to cover that area.
However, GHOSN was constantly seeking
knowledge and information whenever
necessity applies
7. In more than one occasion praising the harsh
time that the employee must be facing but it
is thought that he was doing from a business
oriented perspective not on a compassion
basis Not in all cases but worst to mention
that in more than one occasion praised the
employee and stressed on the fact that their
endeavors in harsh time are appreciated
Section 3– Create a CPD plan (Continuous Professional Development plan) for Carlos Ghosn - CEO
position todevelop his leadership skills
The leadership competences are mainly summarized in four criteria:
1. Leading People
2. Strategic Planning
3. Inspiring Commitment
4. Managing Change
Within the leadership platform the above criteria are also analyzed in conjunction with present and
future leadership requirements and each leader differs from one another and depends on his future
position. In this assignment we are referring to the GHOSN Nissan case leadership and creating
what is called a gap analysis screening the following:
1. Over-investments: competences that are strengths but not considered important
2. Reserves: Competences that are not strengths and not considered important
3. On Track: competencies that are strengths and important
4. Key Gaps: competences that are not strengths but are important

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Over investment On track Reserves Key gap
Decisiveness –
preferring doing or
acting over thinking
about the situation
Culturally adaptable –
adjusting to ethics/regional
expectation regarding
Human resource practices
and effective team process
Beingaquicklearner
–quickly learning
new technical or
business knowledge
Balancing personal
life and work –
balancing work
priorities with personal
life
Strategic planning –
translating vision into
realistic business strategies,
including long- term
objectives
Managing one‟s career
– using professional
relationship (such as
networking coaching
and
mentoring to promote
one‟s career
Confronting people
– acting resolutely
when dealing with
problems
Resourcefulness – working
effectively with top
management
Doing Whatever it
takes –
persevering under
adverse conditions
Compassion &
sensitivity – showing
understanding of
human needs
Managing change – using
effective strategies to
facilitate organizational
change
Putting people at ease
– displaying warmth
& using humor
appropriately
Participative management –
involving
others in critical initiatives
Inspiring commitment –
recognizing and rewarding
employees‟ achievements
Employee development –
coaching and encouraging
employees to develop in
their career
Leading people – directing
and motivating people
Composure – remaining
calm during difficult times
Respecting individuals‟
differences – effectively
working with an treating
people of varying
backgrounds and
perspectives fairly
Self-awareness–
recognizing personnel
limits and strengths

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Section 4– Evaluate the effectiveness of methods used in the CPD plan (Continuous Professional
Development plan) to develop Carlos Ghosn - CEO leadership skills
In reference to Section 3 analysis where we have determined the key gap issues, now there is the
analysis and evaluation to develop those skills. There are three type development tools:
1. Teaching
2. Educating
3. Training
Educating is subject to time constraint and not applicable on the fact the GHOSN is a key icon and
successful leader. Thus, it is suggested to use the Teaching and Training technique. All below
mentioned Key gap is listed hereunder and underneath the applicable development tools.
1. Confronting people – acting resolutely when dealing with problems
2. Compassion & sensitivity – showing understanding of human needs
3. Putting people at ease – displaying warmth & using humor appropriately
4. Balancing personal life and work – balancing work priorities with personal life
It will be adhered by having One-on-one coaching & Training Consultant; for undertaking the
surveys and applying the workshops.
1. Have to undertake a 180 survey for the 2nd line management perspective of GHOSN. After
the Survey results, it should be analyzed and discussed with GHOSN to make sure that he
fully understand if his previous actions has been surveyed as he perceives it.
2. Have to undertake a 360 survey to examine the followers‟ perspective of the 2nd
line manager.
Consequentlyitwillshow toGHOSNifhis strategyintraining, coachingand management has
led to the satisfaction of followers and touch base on the point that might have affected their
performance
3. Onetoonecoachingshouldteachhimtofindstatementthatwillnothurtandwouldstillsendthe
same message desired. Taking the example with the old guard when he did not really consider
choosingwordsthatwould not hurthis age yetachievethesame desired results. To balance his
agendathat it doesn‟t affect his personnel life and toreduce theamount ofwork in orderto have
more time for his personnel life as well as for his health. Which will imply to transfer more
delegationtohis1st
and2nd
linemanagement
4. Along the track after his implementation of his Nissan Revival Plan and having so many
different culture in the management base, it is suggested to hold a Workshops where all 1st
line and 2nd line manager to attend to create an aligned “high performance culture” across
the group. The workshop will combine a number of instructional components including a
leadership stimulation based on demonstrating appropriate behaviors, one to one coaching,
training in storytelling technique and discussion of what components would be required to
create a more effective and sustainable culture.