Carlos Ghosn’s approach to turning Nissan around

Carlos Ghosn’s approach to turning Nissan around In order to give a thorough in-depth evaluation of Carlos Ghosns approach to turning Nissan around I have chosen to apply John Kotters 8-step model to strategic change implementation (Kotter J. P., 1996) displayed below. Kotter is regarded as an authority within the field of organization and change management and I find his model helps securing a comprehensive evaluation. The model is usually used as a forward-looking plan for how to handle a change process, but I will apply it as a retrospective analytical tool to review how the process was handled at Nissan. The first three steps are about creating the right climate for change and making sure the organization is ready to make a move ahead. The next three steps are about engaging and enabling the organization to pursue the strategy. Without support from a large part of the organization, change will not be successful, but equally important the organization needs to be equipped to handle such process change. The last two steps are all about implementing and sustaining change. Without focus on these aspects the organization is in risk of regress. The assignment puts emphasis on organizational and national culture. That is for good reason as I find them central aspects of the challenges Ghosn was facing, when he took over as the first non-Japanese COO of Nissan. Kotters 8-step model does not focus on culture, but it is implicitly handled in several of the steps most noticeable in step two and four. In the conclusion I will sum up the findings in the analysis and explicitly answer the four questions given in the text. 1 à ¢Ã¢â€š ¬Ã‚ ¢Establish a sense of urgency2 à ¢Ã¢â€š ¬Ã‚ ¢Form a powerful coalition3 à ¢Ã¢â€š ¬Ã‚ ¢Create a vision4 à ¢Ã¢â€š ¬Ã‚ ¢Communicate the vision5 à ¢Ã¢â€š ¬Ã‚ ¢Empower others6 à ¢Ã¢â€š ¬Ã‚ ¢Plan for and create short-term wins7 à ¢Ã¢â€š ¬Ã‚ ¢Consolidate improvements8 à ¢Ã¢â€š ¬Ã‚ ¢Institutionalize changes 3 | P a g e 2. EVALUATION ANALYSIS 2.1 ESTABLISH A SENSE OF URGENCY It is an ill wind that blows no good, this was also the case for the Yamaichi bankruptcy. The misfortune of the major financial house in Japan helped open the eyes of the employees in Nissan. Now the employees realized that lifetime employment was no longer a reality and that they had to do their own part to secure the companys future and thus their own jobs. Ghosn, to his credit, used the Yamaichi example whenever he could to continue to motivate his employees, repeating that their fate would be no different if they did not put all of their effort into figuring out, and then executing, the best way to turn Nissan around. (Millikin Dean, 2003) The bankruptcy was indeed a blessing in disguise for Ghosn as it created the burning platform that according to Kotter is crucial to do change. Change is always accompanied by anxiety for the unfamiliar, but this event made sure the whole organization was aware that status quo is more dangerous for Nissan and each employee than venturing into the unknown. Kotter believes that around half of the failed change efforts can be traced back to step one. If people do not see why change is necessary, then motivation for change will be nonexistent. Moving a huge organization simply by brute force is an impossible task, but Ghosns strike of luck created a powerful momentum that diminished potential resistance to change. 2.2 FORM A POWERFUL COALITION One man cannot change a huge company such as Nissan. Ghosn realized this as well. Even though he had been talking with plant employees and had gained a lot of knowledge about what should be done, he chose not to impose a revival plan on Nissan. He wanted the employees to come up with ideas themselves and to lay down a plan for what was to happen. His establishment of the nine Cross-Functional Teams (CFTs) and their sub-teams created powerful coalitions that were essential in turning the company around. These coalitions mainly consisted of middle managers, but they were empowered because they reported directly to two supervisors from the executive committee, had full access to all 4 | P a g e necessary information, and they had the full support from top management. The cross-functional aspect gave the freedom and insight to create radical changes without being weighted down by the need for conscientiousness and corporation, which is a general characteristic for most Japanese companies including Nissan. This powerful coalition is, according to Kotter, fundamental for a successful change as Ghosn needed protagonists to influence the whole organization and these protagonists needed to have enough impact to counteract the inherent resistance to change. A powerful coalition is especially important in Japanese culture as group harmony is a cornerstone in their work environment. A powerful coalition will have fewer problems, relative to a similar situation in a company in Western culture, converting the minds of opponents as many will act opportunistic and follow the majority or as Ghosn puts it: When you get a clear strategy and communicate your priorities, its a pleasure working in Japan. The Japanese are so organized and know how to make the best of things. They respect leadership. (Millikin Dean, 2003) 2.3 CREATE A VISION According to Ghosn, Nissan had been suffering from management lacking vision and he pointed this out as one of five main issues that he wanted to address. First creating the Nissan Revival Plan and then formulating Nissan 180 was an excellent two-step vision, which was guiding, laying a foundation for decision making, and created a bridge from the present to where he wanted to take the company in the future. The vision helped the employees understand why they had to undergo change by showing what was in store in the future. That they had to change their attention from regaining market shares to focus on customer demands. Not only was Ghosn aggressively launching the Nissan 180 program to transition out of the Nissan Revival Plan program, but he was also pushing a new, customer-focused initiative called Quality3-3-3. (Millikin Dean, 2003) 5 | P a g e Creating a vision that is tangible, concise, and easy to relate to for the employees is key when setting out to change an organization. Detailed plans for what needs to be done are at this point not advisable because they do not create the much needed excitement and enthusiasm, which is so vital. It is important to bear in mind that this step is part of the first three steps, which focus on creating the right climate for change. It is therefore all about talking to peoples feelings and not necessarily to their intellect. Furthermore Kotter stresses that leaders need to walk the walk. Actions often speak louder than words and if leaders want people to follow them, then they must take the lead. Ghosn was aware of this. One issue Ghosn noticed, shortly after arriving at Nissan, was the lack of communication between the layers of the organization, and as the quote below shows Ghosn was prepared to walks the walk himself. He was the first manager to actually walk around the entire company and meet every employee in person, shaking hands and introducing himself. (Millikin Dean, 2003) 2.4 COMMUNICATE THE VISION It is not enough to create a great vision. It also has to be communicated effectively to the organization. It says in the text that Ghosn communicated both NRP and Nissan 180 aggressively and that two of his three philosophies of management are: Transparency an organization can only be effective if followers believe that what the leaders think, say, and do are all the same thing. Communication of company direction and priorities this is the only way to get truly unified effort and buy-in. (Millikin Dean, 2003) Information concerning his methods of communication is unfortunately lacking, but there is no doubt, that he understood the importance of communicating the vision, and results show that he succeeded brilliantly. Ghosn and his coalition managed to reach out to all employees and motivate them to move towards the vision. If he had not been able to communicate 6 | P a g e effectively enough the NRP arguably would not have been the rapid success it turned out to be. The NRP was achieved in March 2002, one year ahead of schedule. (Millikin Dean, 2003) Kotter stresses the importance of having focus on communication of the vision because it will act as a guideline, and if people do not get that information they do not know which direction to go. Because mental images are easier to remember one of the effective ways to get the message across is using metaphors, analogies, and examples. His metaphor of 180 in the Nissan 180 vision is a paragon of virtue in that way. It clearly creates a picture of turning the company around, and incorporating the metrics in the 180 made it easier for employees to remember what they needed to do. 2.5 EMPOWER OTHERS The Japanese culture forced Ghosn to pay extra attention on the empowerment of employees. As mentioned, Japanese business culture is characterized by a search for conscientiousness, corporation, group harmony, and an avoidance of mistakes. This all leads to a delay of decision making and a lack of responsibility. The introduction of CFTs was an attempt to break with the inconveniences of Japanese culture without harassing the fundamentals. à ¢Ã¢â€š ¬Ã‚ ¦cultural conflict, if paced and channeled correctly, could provide opportunity for rapid innovation. (Millikin Dean, 2003) People in CFTs got a birds eye perspective of the company and it gave them a sense of ownership and responsibility, which was necessary to turn things around. Ghosn even went as far as to put his own fate in the hands of his employees as he had publicly stated his trust in the employees abilities. He encouraged employees to come forth with their ideas and take risks. This was contradictory to their instincts as it was embedded in the organizational culture not to seek risks and to reach consensus before making a decision. Furthermore, he made organizational changes such as permanent cross-functional departments and matrix organization for higher-level staff, which all emphasized the demand for 7 | P a g e responsibility and accountability. Finally he changed the traditional Japanese compensation system to a more Western approach with possibility for employee advancements based on performance instead of seniority. This greatly empowered the talented employees, which was much needed in this change. In many cases, these midlevel managers enjoyed learning about the business à ¢Ã¢â€š ¬Ã‚ ¦and felt fully engaged in the change process, giving them a sense of responsibility and ownership about turning Nissan around. (Millikin Dean, 2003) 2.6 PLAN FOR AND CREATE SHORT-TERM WINS Ghosn excels when it comes to creating short-term wins. His NRP created tremendous results that boosted motivation throughout the organization. One success was a 20% reduction in purchasing costsà ¢Ã¢â€š ¬Ã‚ ¦ à ¢Ã¢â€š ¬Ã‚ ¦the supplier base shrunk by 40% and the service suppliers decreased by 60%. (Millikin Dean, 2003) It is incredibly important that short-term wins are communicated broadly to the organization, so people can see their hard work come to fruition. Often leaders of change hope that short-term success will arise, but according to Kotter it is necessary to actually plan for them. A commitment to create short-term goals has a positive side effect as it increases the sense of urgency throughout the first period. Ghosn did it brilliantly by announcing to the public that the company would show a profit within two years. This is something all employees can understand and it creates a commitment that helps in the realization of his promises. 2.7 CONSOLIDATE IMPROVEMENTS One of Ghosns three management principles is to execute. He states that 95% of the job is about execution. It is not enough to have a strategy if it is not carried out. This is completely in line with Kotters thinking. The consolidation of improvements is all about securing the short-term wins by rooting them in the company and using that as a foundation for further work. At the same time as he declared that the NRP was achieved he announced the Nissan 180. Nissan 180 represented a plan for growth based on the improvements that NRP yielded. 8 | P a g e Now that they had made the necessary improvements, it was time to consolidate and improve further. I think many leaders mistakenly would have left out the second step of Ghosns two-step vision. But if he had done so, the company presumably would have had difficulties rooting the tremendous results and huge changes that were created in such a short time. His timing of the announcement of Nissan 180 was perfect as it kept the momentum going. The Nissan Revival Plan is over. Two years after the start of its implementation, all the official commitments we took have been overachieved one full year ahead of scheduleà ¢Ã¢â€š ¬Ã‚ ¦ Nissan is now ready to grow. 2.8 INSTITUTIONALIZE CHANGES Another of Kotter areas of focus is that changes are often considered finished too early. The organization needs time to really settle in the new ways and if victory is declared too early, then there is a risk of returning to the old ways. Ghosn was aware of that as he was concerned with what will happen when he returned to Renault. à ¢Ã¢â€š ¬Ã‚ ¦ Ghosn contemplates the future, he knows that the transformation has really just begun The momentum and positive energy that have been created from all the success needs to be followed-up by a new vision and new goals. This can potentially be a difficult task because the great success could diminish the employees sense of urgency. Whether or not his successor is able to do so remains unknown, but the fact that Ghosn was aware that there is still a long way to go shows his great insight to problems with turning a company around and institutionalizing changes. 9 | P a g e 3. EVALUATION CONCLUSION Omitting the fact that Kotter introduced his 8-step model in 1995 one could almost suspect that Ghosn had read about Kotters model to strategic change as it looks like he follows them closely. Ghosns ability to establish the right climate for change, engaging and enabling the whole organization, and implementing and sustaining the change in such a large organization is admirable. 1) I think the resistance to change that Ghosn faced was inevitable. Turning a company around as drastically as was needed for Nissan is bound to create resistance. Such a big change makes the future uncertain for many employees and the uncertainty is something many naturally try to avoid. Combining that with strong Japanese traditions, an organizational culture that is hindering innovation and adaptability, and a Japanese government that historically always have bailed out troubled employees, and thereby created a pretext for inaction, only made it worse. Trying to move people, who do not find movement necessary, will unavoidably create tension and resistance. That being said, I think Ghosn handed the resistance to change ideally. 2) I am sure that many parts of the Nissan organization did not feel very good about having Ghosn changing things as drastically as he did. The reduction of 21,000 jobs will inevitably create opponents among the lower level employees as well as higher in the hierarchy. Furthermore, the demotion of Vice President of Sales and Marketing in Japan would presumably create antagonists with more leverage. Throughout the text examples of his no-nonsense approach to leadership shows that he is a tough leader that does not accept failure and he demands that people take responsibility for their actions. I think this kind of approach combined with his philosophies of management and his capacity for global leadership was the key to his success in Nissan and the reason why his opponents were not able to challenge him seriously. Another reason is the respect for leadership that is inherent in most Japanese. This made his approach to leadership even more effective. Finally, his involvement of the CF Ts made sure that he would not be the only one in the line of fire. The delegation of responsibilities to the CFTs helped getting the support of middle and lower levels, so he could focus his attention on top management. 10 | P a g e 3) The national culture has without a doubt played a large part in the outcome of Ghosns attempt to turn Nissan around. On the one hand it hindered change because of the sense of security the government created and its rigid approach to decision making and career advancement. On the other hand the respect for leadership made it easier for him and his CFTs to have an impact on the organization. The cultural differences between Ghosn and the Nissan organization was profound because he had never been exposed to Japanese culture before, but his approach to the culture ensured that he was fully aware of the issues that could arise. He stated that he wanted to discover Japan by being in Japan with Japanese people. That shows his humble and respectful approach to their culture, which I think benefitted him. 4) There is no doubt that Ghosn was lucky. His timing was impeccable as the bankruptcy of Yamaichi happened when he took office as COO in Nissan. This fortunate misfortune paved the way for a major organizational and cultural change that otherwise would have been hard to push through. Without this, Ghosn and his CFTs would probably have faced a much more daunting task. Whether or not they would have been able to power through in spite remains unknown, but having learned about Ghosn leadership abilities I think he would have found a way. All in all I think Carlos Ghosn did an incredible job turning Nissan around in a very short period of time. As a non-Japanese COO he managed to overcome Japanese cultural obstacles, as well as effectively transforming a bureaucratic organizational culture and turning a large continuing deficit into a profit within 18 month. One could question whether his successor will be able to continue what Ghosn started or if he/she needs to find his/her own way. Either way, Ghosn has a justifiable concern for the future of Nissan. They might be on the right path, but they are still far from reaching their goals. 11 | P a g e

Case Study: Employee Retention Essay

This is a critique is based on two articles, in which addresses the issues of employee retention and suggestions for the motivation and engagement of employees in the hospitality industry. The first article is titled â€Å"Targeted employee retention: Performance-based and job-related differences in reported reasons for staying† by Hausknecht, Rodda, and Howard (2009), in which addresses the major theories to help in explaining the reason that employees stay or leave their organization, and ways to retain them. The second is titled â€Å"Terms of engagement† written by David MacLeod (2010) that presents suggest ways for motivating and engaging employees so they will want to stay. ANALYSIS OF KEY POINTS IN â€Å"TARGETED EMPLOYEE RETENTION† _Reasons employees want to stay with their company_ According to this article, the primary reason that employees stay with their employer are job satisfaction; they enjoy the work involved in serving customers. For many employees, the reasons for staying are for the extrinsic rewards such as pay, benefits and advancement opportunities. Employees want to receive fair rewards for their efforts. If these rewards are not presently found, employees may leave for other opportunities that offer greater rewards. Another factor is â€Å"constituent attachments, in the form of effective supervision and positive peer group relations,† (Hausknecht et tal, 2009, p. 3). Other incentives to retaining employees are organizational commitment and prestige. The secondary reasons are compensation, competitive wages, health benefits, retirement contributions, and incentive plans. Additional reasons for staying are â€Å"constituent attachments, organizational commitment, organizational prestige, lack of alternatives, investments,  advancement opportunities, location, organizational justice, flexible work arrangements, and non-work influences† (p.10). Companies must find ways to keep their employees satisfied so they will not want to leave. _Retention_ Retention is the most important part of a company’s approach to talent management. When organizations cannot retain high performers, its core leadership base will eventually erode as a result of losses in performance, high replacement costs, and potential talent shortages. Because of this, employers are seeking â€Å"to retain high performers and replace low performers with workers who bring greater skills and abilities to the organization† (p. 5). More important than understanding the reasons why people stay is in understanding how retention factors are different between high performers and others at different levels within the company, (p. 2). The authors suggest that organizations should adopt specific strategies retention of their most valued employees rather than those that are considered average or low performers, (p. 2). ANALYSIS OF KEY POINTS IN â€Å"TERMS OF ENGAGEMENT† _Benefits of better engagement_ The hospitality industry places certain pressures on its employees such as long hours, in which can interfere with their social life, and oftentimes having seasonal nature make it more difficult to retain good people. Engaged employees are far more likely to stay with the company than those who are disengaged. In such a highly-pressured environment as the hospitality industry, it is more difficult to more effectively assess and engage employees. According to the author, there are steps that employers can follow to help ensure employees are committed to delivering great customer experiences along with delivering longer-term growth and success, (MacLeod, 2010). _Define a clear and compelling goal_ Oftentimes employees feel that management does not clearly communicate business objectives to them, in which may give the impression that senior managers do not have a clear vision for the future of the business. That is the reason the author states the importance of communication, and having a clear vision concerning the direction of the company, the goals to achieve, and how the employee fits in to that vision, (MacLeod, 2010). On a personal level, employees want to know what those plans are and how it will affect, (MacLeod, 2010). _Involve employees_ One of the important factors to effective engagement is to involve the employees in sharing their insights into how particular issues can be addressed, such as relating to customer service issues, or how the business is promoted. It is also important to provide feedback on the points they do bring up because employees that are involved in sharing their insights tend to be more engaged in the day-to-day operations of the business, (MacLeod, 2010). _Commit to regular communication_ Whether the economic climate is strong or weak, it is important that management commit regularly to open communication by sharing information with employees throughout the year concerning the performance of the business along with any issues or challenges that they may have. By having open communications with the employees is the key to an effective employer/ employee relationship, in which builds and maintains trust, (MacLeod, 2010). SUMMARY AND OPINION Employee turnover in the hospitality industry is an issue that most business owners face. Hospitality businesses can reduce the turnover rate significantly by paying more attention to the needs of their staff because happy employees make happy customers. The analysis of the key points in the  first article; by Hausknecht, Rodda, and Howard (2009) is more about how to retain employees rather then that the reasons they quit. A primary concern for many organizations is that of retaining top talent. If organizations fail to retain their employees, it will hinder their ability to remain competitive because of a less qualified workforce. The author’s goal for this study was to generate a foundation relating to employees’ reported reasons for staying and to review â€Å"the major theories that have been advanced in the literature over the past 50 years that help explain why employees stay or quit,† (p. 2). After the hospitality industry has faced a serious challenge of retaining employees, MacLeod (2010), in his article â€Å"Terms of engagement† presents a research on the management teams of the hospitality industry. The analysis of the key points in this article was that the research presents suggestions for the motivation of employees and for employee engagement, including a clear goal, involvement of employees and analysis of behavior. The author states the importance of communicating this vision so the employees will know how this vision will personally affect them. As I read these articles, what comes to my mind is the concept of fusion; between retention high performance employees with the motivation of employees and employee engagement. If this cannot be achieved, it will continue to lead to labor turnover, which is very costly. The most important thing to remember in the hospitality industry is that the customer is number one; always. But this cannot be achieved without valuable employees who believe the same thing. Before the customer can be treated as number one, the employees must be first because happy employees lead to happy customers. References Hausknecht, J. P., Rodda, J., & Howard, M. J. (2009). Targeted employee retention: Performance-based and job-related differences in reported reasons for staying. Human Resource Management, 48(2), 269-288. MacLeod, D. (2010). _Terms of engagement_. Caterer & Hotelkeeper, 200(4618), 56-58.

Native American and The US government Essay - 1169 Words

Native American and The US government The Iroquois Nation was a nation of five tribes, which was comprised of Mohawks, Senecas, Oneidas, Cayugas, and Onondagas. These tribes were originally separated, but later brought together by two Indians named Hiawatha and Deganawidah. Hiawatha seemed to be the spokesman while Deganawidah took on the role as a philosopher. These two men formed a nation where some of the ideas are still intact today. One aspect that made them so strong was the way in which they governed themselves. Women in their society were basically in charge, except for the Sachems who were representatives appointed by the heads of the Ohwachiras. When this federal assembly met, the Sachems voted as tribes instead as†¦show more content†¦A written history was not looked at as being that important. The Native Americans don’t recognize time in a linear fashion but more of a circular one. The old history of the Native Americans was one of war chiefs and cruel leaders with a blood thirst and extreme savagery. The older has more religion mixed in with it, as it should because the great emphasis on religion and history are combined. The Native Americans before the arrival of Europeans were a people with inner strife and conflict as well as accomplishment. They were on the land that connected them with there history and it was easy for them to pass it down. The new history is one of forced moves from lands that connect the Native Americans to their history and religion. The new history is comprised of trade wars along with fighting amongst once friendly tribes. The new history is also comprised of sickness, which was spread by Europeans. Hopefully, new writings about the leaders who were philosophers and great peacemakers will replace the misguided views of early European history. Life For the Native Americans was good before the Europeans arrived. 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The Narrative Voice of Middlemarch and Wuthering Heights

During the nineteenth century, the novel as a form underwent a radical development and authors of prose fiction began to allow their creativity to intertwine with realist conventions. Authors such as Charles Dickens and George Eliot created a new kind of imaginative prose writing, which straddled the cusp of imagination and reality. Prior to this, the conventions of the novel were far more historical and factual than the novels of the nineteenth century – many authors at this point seemed to find it difficult to refrain from drawing their own experiences into their work - and the novel as a form was considered by many to be a very middle class idea, as the rise of the novel coincided with the mergence of the middle-class in British†¦show more content†¦Both novels comprise of a complex narrative structure, and are narrated from the third person perspective, however this is technique is utilized differently in each story. Whereas Wuthering Heights is narrated from the (unreliable) perspectives of two characters in the story; Lockwood and Nelly Dean, the narrator of Middlemarch is a highly intelligent omniscient (unnamed) narrator which allows each character in the story to be examined and presented in great depth – a kind of ‘licensed trespasser’ and becomes a transparent presence. She allows the reader a window into the novels events, yet she does not place herself in the way. However different they may be in form and content, both texts share a multi-perspective narrative, and the events which occur in these fictional worlds are presented and conveyed on different levels and from various perspectives. In this essay, I will discuss the idea of the omniscient narrator in relation to Middlemarch and Wuthering Heights. In Middlemarch I feel that she is an important and necessary device and without her, readers would not gain such a rounded perspective. In Wuthering Heights however the unreliable narration is told from multi-laye red perspectives and provides readers with a biased view of the events which unfold throughout the novel, and I will explore why this can be problematic. Whilst Middlemarch’s narrator has been defined as a third-person omniscient narrator, many critics have hadShow MoreRelatedEssay Prompts4057 Words   |  17 PagesExplain how the author’s treatment of this question affects your understanding of the work as a whole. Avoid mere plot summary. You may select a work from the list below or another novel or play of comparable literary merit. Alias Grace Middlemarch All the King’s Men Moby-Dick Candide Obasan Death of a Salesman Oedipus Rex Doctor Faustus Orlando Don Quixote A portrait of the Artist as a Young Man A Gesture