Notes on:

Ghosn, C. (2002). “Saving the Business Without Losing the Company.” Harvard Business Review, January 2002, p 37-45.

• Intro
  • Renault Nissan Merger
  • Ghosn natural candidate
    • Cleaned up failed merger with Volvo
  • Nissan unprofitable for 8 yrs
  • “do-or-die situation” (p 38)
  • retain self-esteem of employees
  • Plan
    • involve Nissan’s own managers
    • Cross-functional teams
    • company culture important
    • develop new culture
• Breaking with Tradition
  • Historically, product dev lessened to save money
  • No seniority rule
  • Sometimes younger managers suffer
  • New performance-based compensation
  • historically, loose areas of responsibility
    • positions with no responsibility
• Mobilizing Cross-Functional Teams
  • Dramatic changes
  • Went against some norms of Japanese society
  • Cross-functional teams were primary part of plan
    • Given 3 months to come up with turnaround recommendations
    • Came from company’s middle managers
    • Each CFT had subteams
    • Executive sponsors from different business areas
    • Pilots with frontline experience and credibility with rank and file
    • Challenge to reduce costs by 20%
    • Identified many small changes to reduce costs
    • Nissan Revival Plan, developed by Nissan’s own executives
      • Plan was about braking, and accelerating the company
• The Importance of Respect
  • Uneasy public
  • Employees trusted Ghosn b/c of respect he showed
  • “careful to protect Nissan’s identity and its dignity as a company” (p 44)
  • Renault did not try to renegotiate terms
  • Nissan’s culture more impt than Japanese culture