Analysis Carlos Ghosn
Organizations in the New Economy
March 21, 2010
INTRODUCTION
Change is one of the only constants in life and the same is so in business. In a free market economy, change is inevitable, so the manner in which change is administered or managed plays an integral part in the success or failure of an organization. Realizing that immediate change was needed, Nissan turned to Carlos Ghosn to revive a company headed towards bankruptcy with a record loss of more than $6 billion in fiscal year 19991. Using core tasks of change leadership Ghosn implemented procedures and technologies to deal with rapid changes in the business environment which transformed Nissan into one of the most profitable companies in the world. Simply put, Carlos Ghosn’s leadership spearheaded one of the most astounding turnarounds in automotive and corporate history.
ANALYSIS:
Develop and Communicate Purpose:
The organizational purpose is the foundation upon which every successful business is built2. Ghosn understood that as organizational members work together to plan, there are many options and many choices must be made. By actively listening and asking for input (through completing a “diagnostic tour”) Ghosn was able to develop a common base from which to further examine who Nissan is, what they needed to do, and where they wanted to go. Ghosn believed that by giving employees and media the true picture of the company, it would be easier for him to convince them about the drastic steps that would follow. By communicating directly to employees in an “all-hands” meeting Ghosn provided clarity and a focus that aided internal and external understanding
Establish Demanding Performance Goals:
Setting challenging, attainable program goals that are accepted by management and employees leads to high performance3. Goals also provide a clear course of action and remove any uncertainties about expectations. Ghosn established aggressive performance goals by unveiling the Nissan Revival Plan
March 21, 2010
INTRODUCTION
Change is one of the only constants in life and the same is so in business. In a free market economy, change is inevitable, so the manner in which change is administered or managed plays an integral part in the success or failure of an organization. Realizing that immediate change was needed, Nissan turned to Carlos Ghosn to revive a company headed towards bankruptcy with a record loss of more than $6 billion in fiscal year 19991. Using core tasks of change leadership Ghosn implemented procedures and technologies to deal with rapid changes in the business environment which transformed Nissan into one of the most profitable companies in the world. Simply put, Carlos Ghosn’s leadership spearheaded one of the most astounding turnarounds in automotive and corporate history.
ANALYSIS:
Develop and Communicate Purpose:
The organizational purpose is the foundation upon which every successful business is built2. Ghosn understood that as organizational members work together to plan, there are many options and many choices must be made. By actively listening and asking for input (through completing a “diagnostic tour”) Ghosn was able to develop a common base from which to further examine who Nissan is, what they needed to do, and where they wanted to go. Ghosn believed that by giving employees and media the true picture of the company, it would be easier for him to convince them about the drastic steps that would follow. By communicating directly to employees in an “all-hands” meeting Ghosn provided clarity and a focus that aided internal and external understanding
Establish Demanding Performance Goals:
Setting challenging, attainable program goals that are accepted by management and employees leads to high performance3. Goals also provide a clear course of action and remove any uncertainties about expectations. Ghosn established aggressive performance goals by unveiling the Nissan Revival Plan