Leading Change for Carlos Ghosn at Renault and Nissan Essay Example

Leading Change for Carlos Ghosn at Renault and Nissan Essay Example Leading Change for Carlos Ghosn at Renault and Nissan Essay Leading Change for Carlos Ghosn at Renault and Nissan Essay Individual Assignment: leading change for Carlos Ghosn at Renault and Nissan – Core Leadership task Carlos Ghosn is very strong leader who leading the Renault and Nissan. He made the Company strategic alliance for Nissan with French auto car manufacturer Renault was mutually beneficial for both companies, each of them expanding portfolio and becoming more competitive in the context of globalized mature automobile market. Analysis the leadership of Carlos Ghosn, actually he made a number of remarkable leadership change management on the Renault and Nissan. And Following core task of leadership were well used at Tenure and Nissan A. Effective leadership instills in the organization behavioral patterns that will support sustained outstanding performance. At Nissan, he want to bring Nissan back to profitability at the earliest date possible and revive it as highly attractive company. But in the cooperation through the merge and alliances, that is not dimply a matters of making fundamental change to a company’s organization and operations so de decided to focusing on specific business objective, means focusing on performance and he could by pass concerns for cultural difference. Meanwhile through the performance management, he remove the executive who failure to meet performance target. Through the over and over change. He equip up the team with good performance to achieve the change the people instead of change person. B. Develop and Communicate Purpose – He made a lot of level communication to member and got much valuable information to help him diagnosis the organization and implemented the change accordingly. Meanwhile to share the demanding of organization performance goal. This is also a upward communication. like the article side: spoke directly to employee was especially important C. Leader development through the cross function team work and make the important decision of organization to let those key member well know operation of other function to give then horizontal view of organization for future development D. Effective leadership will be exercised by multiple individuals at different levels and in different units of the organization. E. Walk and talk in his view the leaders must do what they say and say what they do. And he required the top management team is highly visible and what they think, what they say and what they do must be same. They have to be impeccable in ensuring that they worlds correspond to their action. F. The Effective leadership will be exercised by multiple individuals at different levels and in different units of the organization – he involved NRP and serial of HR management plan to reduce the cost, make the good transformation, transformed a struggling company into a good company. Transform the good company into a great company. Overall evaluated for Carlos Ghosn’s leadership on change management, we may see he well manager those leadership to adapt the organization development needs, he engage the six core of leadership from coupled with demanding performance goal, and employee can then adapt to changing circumstances by finding new petitions while aligned with the company’s purpose and direction. Through the well communication setting up, especially upward communication, support new behavior and help ensure leader will learn from employee at all level about the effectiveness of the efforts. Carlos Ghosn leads the change. And also we may see those changes are involved a lot of party of organization to make those change happen as not individual can change the organization. Effective leadership change requires that collaborative partnership among those individuals who hold the positions of formal authority and employee at other organization level who can participants in the process of leading change. The result of the changes, of course will be benefit to the organization as a whole. Leadership ectation rganization performance dem Cross-Functional Teams 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 . Carlos Ghosn Even though Ghosn expected that his attitude toward cultural respect and opportunism would lead to success, Ghosn was pleasantly surprised by how quickly Nissan employees accepted and participated in the change of their m anagement processes. In his speech at Tuck school he mentioned that workers love stories, they want to understand the story they are in and the role they are playing, they want to see a happy ending-and they want to be part of that ending. Nissan employees were eager to prove themselves. In fact, he has credited all of the success in his programs and policies to the willingness of the Nissan employees at all levels to change their mindsets and embrace new ideas. Perhaps it was the way he started that set the foundation among the employees. Is this Essay helpful? Join OPPapers to read more and access more than 325,000 just like it! get better grades Carlos Ghosn was the first manager to actually walk around the entire company and meet every employee in person, shaking hands and introducing himself. In addition, Ghosn initiated long discussions with several hundred managers in order to discuss their ideas for turning Nissan around. This began to address the problems within the vertical layers of management by bringing the highest leader of the company in touch with some of the execution issues facing middle and lower management. It also sent a signal to other executives that they needed to be doing the same thing. But he did not stop there. After these interviews, he decided that the employees were quite energetic, as shown by their recommendations and opinions. With this in mind, Ghosn decided to develop a program for transformation which relied on the Nissan people to make recommendations, instead of hiring outside consultants. He began to organize Cross-Functional Teams to make decisions for radical changes in the company. Part of The Global Leadership Of Carlos Ghosn At Nissan In 1999, the Nissan was suffering under a decade of decline and unprofitability, in fact the company was on the verge of bankruptcy, with continuous loses for the past eight years resulting in debts of approx. $22 billion. Elements impacting Nissans performance prior to the global alliance with Renault Internal factors: Emphasis on short-term market share growth instead of a long term success strategy; Advanced engineering and technology, plant productivity, quality management. However, less attention was given to design and innovation, on the assumption that consumers were looking for quality and safety. This implies a lack of knowledge of the market, consumers changing tastes, and showed that Nissan management did not pay too much attention to what competition was doing. External factors: The devaluation of yen from 100 to 90 yen for a US dollar; Moodys and Standard Poorss rating agencies announced in 1999 that Nissan would be lowered from investment grade to junk unless it could not Is this Essay helpful? Join OPPapers to read more and access more than 325,000 just like it! get better grades get any financial support. Both formal and informal internal procedural Nissan norms, as well as Japanese cultural norms were holding the company back. Through keiretsu investments Nissan management believed would foster loyalty and cooperation between members of the value chain, hence they invested in real estate and suppliers companies. 4 billion US dollars were invested in stock shares of other companies as part of keiretsu philosophy. Nissan Company strategic alliance with French auto car manufacturer Renault was mutually beneficial for both companies, each of them expanding portfolio and becoming more competitive in the context of globalized mature automobile market. With Renault assuming a stake of 36. 8% at Nissan, the latter would retain its investment grade status. The alliance enabled Renault to penetrate and expand in international markets that it was looking for Asia and North America. In turn, Nissan would gain market share in South America.