Carlos Ghosn At Nissan An Evaluation Management Essay

Carlos Ghosn At Nissan An Evaluation Management Essay In 1999 Renualt and Nissan formed an alliance, as both companies could benefit from each other. Renualt needed a partner that could enhance their global position and Nissan had been looking for a strategic partner because they needed financial support after their credit rating was announced to be lowered to junk status, mainly due to the Asian financial crisis. The alliance should also contribute to new management ideas for Nissan to turnaround their seven out of eight year deficit. Carlos Ghosn was the guy to help Nissan to do this. The challenges that Ghosn faced were among others resistance to change, Japanese culture and communication problems. Ghosn promised that if he hadnt changed the deficit to a profit within two years, he would step down from his job at Nissan. He managed to turnaround Nissan in just eighteen months. Evaluation of Carlos Ghosn approach The evaluation of Ghosn approach to the turnaround of Nissan is addressing the following aspects. At the end of the paper the actual evaluation will be stated. Resistance to change When strategic changes are going to be implemented in companies, resistance to change almost always appears, and Nissan were no exception. The resistance in Nissan occurred because the Japanese culture is bureaucratic and focuses on social harmony. But organizational culture also caused some resistance from the employees. With that said I dont think that the employees where that resistant. It sounds like the employees knew that the situation was serious, and they didnt want to lose their job. As stated later in the paper, the mindset of the employees change and that the changes happened very fast. Some of the main causes of resistance are unawareness of what and why things are changing and lack of communication from the leader to the employees (Ford 2009). The first thing Ghosn embrace is exactly those things, and thereby avoid resistance concerning those causes. Tina Nielsen Strategy Execution 48-hour exam 050684-1216 CM-J41 Oktober 29th 2010 Page | 4 Reasons for resistance Despite of the things Ghosn do to avoid resistance, there is some resistance from the employees. The causes for resistance are seen below: No guaranty of lifetime employment Promotion based on performance instead of seniority and education (Nennkou-Jyoretu philosophy) Ghosn encouraged risk-taking Matrix structure The changes for the employees were thus large, as their whole business mindset had to change. The causes are described in the following: Lifetime employment was security for the employees as they knew that they would never lose the job. The Japanese government would bail the company out if they were in financial trouble. This, though, werent the case for the major financial house, Yamaichi, which went bankrupt and not saved by the government just before Ghosn came to Japan (case: C551). This changed the employees mindset so they got a sense of urgency of getting Nissan to perform well again or else they could lose their job. A big resistance from the employees was the promotion of younger leaders over older, longer-serving employees. The Nennkou-Jyoretu philosophy did no longer exist, as Ghosn wanted to promote risk-taking and personal accountability and responsibility. This was done by introducing performance based incentive systems, which included cash incentives and stock options for achievements directly linked to successful operating profit and revenue (case:C553). The change of the promotion system would course some resistance from the employees that were up for a promotion, but didnt get it because of the new system. This could create a dis-motivating problem that Nissan has to consider and exterminate. The reason for changing the promotion system was to encourage risk taking. The Nemawashi philosophy destroyed the effectiveness of decision making in Nissan and other Japanese companies. These informal meeting before information meeting was Tina Nielsen Strategy Execution 48-hour exam 050684-1216 CM-J41 Oktober 29th 2010 Page | 5 held to protect the individual from making bad decisions, and in the previous promotion system, the only thing preventing the employee of a career advancement what failure and mistakes. This Ghosn changed as he wanted the employees to think, take responsibility and be accountable for what they did. Every report that the employees handed in had to be accurate and the employees was held accountable for what was stated in the report. Ghosn changed the organizational structure to a matrix structure. This meant that every employee will have two bosses; a functional and a regional. The often fatal weakness of this structure is the discussions among employees from different departments about resource allocation (KaplanNorton 2006), and thereby cause resistance to the change. It was not only the employees that were resistance to change. Business analysts and the media both criticized Ghosn for going against the Japanese culture by firing people that not met targets, this also let to a nickname: the foreigner (case: C552). The government responded to this change of business culture by offering subsidies and programs for the affected employees, probably because they saw the rational of not bailing companies out of their crisis, just because they didnt manage their company well. Organizational culture To turn Nissans deficit to a profit, the corporate culture had to change. The Japanese culture had a big impact on how the corporate culture was, but some of the problems at Nissan where not normally seen in other Japanese companies. On top of the problems Ghosn states (see case: C549), there are some other organizational problems. These problems were: Follow-up on decision was not effective Top management had created tunnel vision regarding market share instead of profit à   created unprofitable products Communication problems through the layers Tina Nielsen Strategy Execution 48-hour exam 050684-1216 CM-J41 Oktober 29th 2010 Page | 6 Top management did not follow up effectively on decisions, which made it difficult to know which decisions were successful and which were bad. The consequence is that Nissan doesnt learn of their mistakes and thereby cannot use the lesson learn from bad decision or the experience from good decisions to future decision making. Top management focused on market share instead of profit, which created unprofitable products as listed in the case: à ¢Ã¢â€š ¬Ã‚ ¦ only four out of 43 models turned a profit. (Case: C546). The reason for this focus was the maintenance of company size and staff. This corporate problem stem from the long standing partnership between the government and major businesses to ensure lifelong employment. As there was no guaranty at being bail out by the government, Nissans strategic focus has to change to regard profit instead of market share. The communication problem at Nissan concerns no shared vision or strategy throughout the company. Staff doesnt know what the top management is doing and top management doesnt know what the other managers and employees are doing. This may lead to a company that doesnt move in the same direction as the employees dont know the direction they should work. This problem stems from the national culture problem that groups dont talk to each other, and only worry about how their own department is doing. What Ghosn did to enlist support To handle the above problems Ghosn made three principles that transcended all cultures in the firm. These were: 1. Transparency 2. Execution 95%, strategy 5% 3. Communication These principles were used to give employees structure and give guidance on what to keep in mind when managing the company in the future. Ghosn was surprised how fast the employees at every level adapted to the new management process. But he also saw the cultural problem as a challenge and he Tina Nielsen Strategy Execution 48-hour exam 050684-1216 CM-J41 Oktober 29th 2010 Page | 7 stated that it was important to respect the employees culture. This led to the following initiatives: The first thing Ghosn did was to ensure that the people that accompanied him from Renault had the same respect and attitude for Nissan and the Japanese culture as him. He initiated long discussions with several hundred managers in order to get an insight on the day-to-day operations. He turned the resistance into feedback and used the conversations with managers as a resource to find the optimal solutions (Ford 2009). After these discussions he developed a program which encouraged the employees at Nissan to contribute recommendations for the company. This replaced outside hiring and Ghosn hoped this induced motivation. This program called Cross-Functional-Teams (CFT) consisted of 10 members from different departments. The groups also contributed to better insight across the different departments, and moved away from the imploded relationships in the company (Krackhardt 2000). It also gave the employees a better insight of the company as a whole. The groups developed a new corporate culture from the best elements of the Japanese culture (case:C551). Working in these groups also helped the managers to think in new ways and share ideas across departments. Ghosn created a matrix structure so every employee had two bosses; this improved the transparency and communication between the departments and also the awareness of both functional and regional problems. Ghosn disciplined employees strongly for inaccurate and poor data; he wanted employees to take responsibility. This was to stimulate risk taking and personal accountability. Ghosn created a system of if you contribute there will be opportunity and reward (case: C553) These initiatives and the fact that Japanese respect leadership helped Ghosn to incorporate his new management process in the corporate culture. Tina Nielsen Strategy Execution 48-hour exam 050684-1216 CM-J41 Oktober 29th 2010 Page | 8 National culture The Japanese culture is very incorporated in every company in Japan as so in Nissan, and it is hard not to affect Ghosn. The national culture has challenged Ghosn both on the personnel side and the financial side. The following are listing some of the Japanese cultures impact on Nissan: The keiretsu philosophy à   tying up capital of $4 billion Cultural consensus of group harmony creates efficiency à   no awareness of what is going on outside own group (Imploded relationship; Krackhardt 2000) Finger pointing à   no one accepted responsibility. Blamed everyone but themselves. Acceptance rather that responsibility because culture protects career advancement Nemawashi à   informal meetings before information meetingsà   no individual to blame Hampered risk-taking and slowed decision making at all levels. Routine, details and concepts with no sense of urgency slowed decision making and created no risk taking As Ghosn states: The Japanese are so organized and know how to make the best of things. The respect leadership. (Case:C550) Ghosn had a very open mind when entering the job, for instance he didnt wanted to learn much about the Japan before he came, because he didnt wanted to get any preconceived ideas (case: C546). Ghosn had also worked at four different continents and spoke five different languages, which indicates that he has an open mind to cultural differences and that he is used to work in different cultures. You can say that Ghosn is multicultural. This helped Ghosn to reduce the difference between his culture and Nissans culture, and thereby didnt induce deep cultural differences. Tina Nielsen Strategy Execution 48-hour exam 050684-1216 CM-J41 Oktober 29th 2010 Page | 9 Culture as a helper or hindrance Culture was both a helper and a hindrance for Ghosn. The hindrance consisted of how deep Japanese culture where incorporated in Nissan, such as no responsibility, accountability and risk taking from employees and the keiretsu philosophy. The respect for leadership was a big helper for Ghosn, as the employees at every level where willing to change their mind and embrace new ideas. Ghosn himself was very surprised that the acceptance of change happened that quickly. The way Ghosn embraced the cultural difference was: à ¢Ã¢â€š ¬Ã‚ ¦ by accepting and building on strengths of the different cultures, all employees, including Ghosn himself, would be given a chance to grow personally through the consideration of different perspectives. (case: C550). This way Ghosn made culture into an opportunity and not a hindrance for managing Nissan. Luck and timing One of the most powerful impacts on strategy execution is the capital market (BowerGilbert 2007). One of the reasons that Nissan needed help was the Asian financial crisis, where the devaluation of the yen/USD had a big impact on Nissans keiretsu investments. This meant that Nissan should find a new partner in the automobile industry to avoid a credit rating as junk. They also needed new capital and new ideas. The financial house, Yamaichi, went bankrupt at the same time Ghosn arrived to Japan, and where not helped by the government. This sent a message to Nissans employees that they should not be sure of having a job if Nissan proceed with their operations as usually. Ghosn also took advantage of the situation by using the Yamaichi example any time possible. Renault looked for a partner, as they wanted to exploit the Japanese and the North American market to enhance their global position. Another reason was to reduce their dependency of the European market. In May 1998 Renault merged with DaimlerCrysler, which led to a sense of urgency of finding a partner to compete more Tina Nielsen Strategy Execution 48-hour exam 050684-1216 CM-J41 Oktober 29th 2010 Page | 10 globally. If Renault didnt alliance with Nissan, Ghosn would never have been COO of Nissan. Another thing is that Ghosn came to Renault in 1996, if the alliance were made before that, Ghosn would not have been the leader of the changes. If the alliance were made in the beginning of his career at Renault it is not sure that Ghosn would have got the job. All these events have resulted in the success of Nissan turning their deficit to a profit. If these events where not happening at the same time, it is not certain that the success Ghosn experienced would have happened. I dont think than Ghosn could have had the same success a few years earlier, as the Yamaichi bankruptcy changed Nissans employees mindset referring to their job security. Renault would probably not have been looking for an alliance partner (and Ghosn would not have been in Nissan), if they hadnt got the need of a global position on the world market, which they urgently got in 1998 after the merger with DaimlerChrysler. The conclusion is that both luck and timing of many elements affects the success of changes. Evaluation My opinion of Carlos Ghosns approach to turning Nissan around is that it was the right way to do it. Ghosn knew that he had to respect the national culture, and he knew that he had to lead the employees being heard. The latter is often a reason why resistance occurs, because it is the employees that know the day-to-day operations and know what can be done (Ford 2009). A key initiative he imposes was the CFT, which should enforce communication and motivation: He (red.Ghosn) felt that if the employees could accomplish the revival by their own hands, the confidence in the company as a whole and motivation would again flourish. (Case:C550) Tina Nielsen Strategy Execution 48-hour exam 050684-1216 CM-J41 Oktober 29th 2010 Page | 11 This was very clever as the CFT accepted the firing of the 21,000 employees. This was accepted of the employees because if the CFT agreed on that, then it must be right, or else they wouldnt have fired people. If it was Ghosn alone that made the decision, employees may not have been accepting that as fast, and resistance would have appeared. The way Ghosn approached the Japanese culture were with humility and respect, this was necessary in a country where culture is as important as in Japan. Literature Ford, J. D. and Ford, L. W. (2009). Decoding resistance to change. Harvard Business Review, 87(4), 99-103 Kaplan, R. S. and Norton, D. P.(2006).How to implement a new strategy without disrupting your organization. Harvard Business Review, 84(3), 100-109 Krackhardt, D. and Hanson, J. R.(1993).Informal networks: the company behind the chart. Harvard Business Review, July/August, 104-111 Bower, J. L. and Gilbert, C. G. (2007). How managers everyday decisions create or destroy your companys strategy.Harvard Business Review, 85(2), 72-79

Contents of a Dead Mans Packets

In the story â€Å"Contents of a Dead Man’s Pocket† written by Jack Finney, the main character named Tom goes through a near death experience causing him to realize that ambitions are not all that life is about, that his job is not more important than his wife, and that he is missing out on life because of his ambitions. The conflict in this story is a man versus self because Tom’s ambition clouded his judgement into believing that his job was more important than his life, so important that he risked his life for it. Additionally, a conflict that comes up is how the husband spends oo much time on his work, he is focused too much on his job that he ignores his life. This takes away time with wife, Clare, who goes out alone often because Tom claims he has to work. Clare says, â€Å"You work too much, though, Tom, and too hard. † But Tom thinks to himself â€Å"it was not actually true that he had to work tonight, though he very much wanted to†¦ this wa s his own project†¦ and it could be postponed. † This shows that he thinks more about his job that anything else, its his main ambition which gives him time for anything else. He is missing out on life and time with his wife while he can still spend time with her. After his near death experience of almost falling from an apartment twenty stories high, he realizes this and goes out to meet her at the movie. Also, he cannot get back inside of his apartment after climbing out the window from his 20th floor apartment for the slip of paper that flew out the window that had all his observations and notes for a new grocery store display method because the window closed down on him and he also cannot reach the slip of paper he went after. He is able to et the slip of paper right before he is about to fall but regains his balance. As he slowly makes his way back along the ledge of the building towards the window, the window shuts closed on him when he reaches it. As he stands out in the cold he begins to think and realize things. â€Å"He thought of all the evenings he had spent away from her, working, and he regretted them. He thought wonderingly of his fierce am bition and of the direction his life had taken; he thought of the hours he'd spent by himself, filling the yellow sheet that had brought him out here. Contents of the dead man's pockets, he thought with sudden fierce anger, a wasted life. † Furthermore, he now understood that he wasted all that time on his work while really accomplishing nothing. He had wasted precious moments that he could have spent with his wife that now he would not have a chance to do, it was too late. There would be nothing to remember him by, no accomplishments, no memories. After finally being able to get back into his apartment by breaking the window he knows what he has been missing out on, his thoughts are not clouded by his need to work anymore. He understands that life was not meant to be spent working to have a life, it was meant to be with ones you love. When he gets back into his apartment he proves that he is a changed man by going out to catch up with his wife to see the movie. And the fact that he laughs and ignors the paper flew back out the window when he opened the door to leave that he had just retrieved from outside is proof that his job is not his main thought anymore. Tom’s near death experience helped him to understand that work is not more important than his life, that he should make the most f of life because if he does not he will die one day and leave nothing behind. There will be nothing for his wife, no money and no memories, the world will forget him, he will have nothing to show for himself. He realizes that his wife is important, that he has forgotten about having a life, and that he he has been wasting it by working for nothing. He works too much and yet there is nothing to show for it. In the end he changes his ways and goes out to live his life, to enjoy life, and spend time with his wife while he can.

Guidelines for writing Admission Essay

Admission essays are not the major and are not the most difficult essays that have to be written by any student on the way to his diploma. But even though they might not look so important and serious at the first glance, they do make difference in many students lives. One little mistake such as not paying enough attention to this essay when entering college can totally change the life and career of a person. That is why when you want to enter a particular college you need to do everything in your power to get in there, including writing the best Admission Essay you can. In order to help you with this I will try to give you a brief list of guidelines on writing this type of papers. This is not a school essay. You need to be original and show your personality and creativity. Try to show your engagement with the college you choose and show how your skills, achievements and abilities are suitable for them. Always be specific in your paper. Provide concrete examples and try to show yourself through them. Do not forget to mention the uniqueness of the college you enter and how it is connected with your personality. Remember who your audience is. Make the essay persuasive for them and make it in such a way that they will not forget about you at once. Be positive and try to show your positive sides instead of negative ones. Do not make yourself too perfect though. When choosing a topic make sure you can stick with it till the paper is finished. No shifting to unrelated material. Try not mentioning the materials that are included into your application form. Do not write about your high test scores and GPA. Be selective in choosing your ideas. The paper has to be full of contrasts. Remember: there is no specific format for Admission Essays. You are to make it original and impressive. This is your main goal. Try not to talk about religion and your faith in the essay. Do not put all your life in this paper. You need to focus on a couple of important points and describe them in details. Avoid clichs and overused phrases. They make you look like others and you need to show your personality instead. I hope your Admission Essay will always stand out among the other ones and you will succeed in achieving your goal. Good Luck!!!

Childhood Memories Of Childhood - 865 Words

I remember the first day that I realized that I was different from most kids. When I five years old, I attended Sacred Heart Cathedral Preparatory in San Francisco’s Fillmore District. I was surrounded by diversity from an early age and during that time I was considered outgoing, and an extroverted child that loved to learn. Living in the Fillmore was a great experience, my grandparents live in a massive home two story house which was right up the street from my school. My family would all gather to have at my grandparent’s house, so the majority of my family resided in my neighborhood. Before going to 2nd grade, my mother lost her job so we were forced to live in low income housing and I had to attend a public school. We ended up moving†¦show more content†¦As a matter of fact, I recall an incident that happened on a playground, there was a boy that would not play with me during recess because of my skin complexion, he not only hurt my feelings by calling me n ames but he dismissed me from playing with him because I was the â€Å"ugly duckling†. Despite my uniqueness, I struggled with who I was and through my embarrassing moments contributed to my low self-esteem issues. My third grade teacher, Ms. Lightfoot, couldn’t understand why I stayed to myself, I ate lunch alone, and did not have any friends. One day she asked â€Å"why are you sitting there by yourself?†. I told her I didn’t have any friends and that I was often called names or teased because I was too dark. I told her I wanted to perm my hair so that it could blow in the wind like everyone else’ and I wanted my skin color to be like the light skin girls in class. Ms. Lightfoot was appalled, and I could see the tears forming in her eyes. 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