Case 11: Carlos Ghosn: Multicultural Leader as CEO of Nissan and Renault
Leadership is the ability to influence others to achieve a common goal. Culture is the values, understandings, assumptions, and goals that are passed from generation to generation. Strategy is the choices an organization makes on how they will operate and differentiate themselves from competitors. All of these three variables (leadership, culture and strategy) make up the formula for successful performance of a firm: P=f (L+C+S). A firm’s successful performance depends on strong leadership, adaptability to any culture, and a strong strategy. Leadership, Culture and Strategy all need to work hand-in-hand for an organization to be successful and achieve their goals. The problem many mangers face is the ability to have a Global Mindset, adapt to many different cultures, and have the flexibility to make adjustments in any situation. Carlos Ghosn, a French businessman, born in Brazil to Lebanese parents, became the CEO of both Renault and Nissan. Carlos was a successful and effective leader because he had a Global Mindset. Carlos knew how to listen, kept his promises, encouraged, motivated, and instilled a sense of urgency in the Japanese workers. Carlos Ghosn was able to turnaround Nissan from $254 million in losses and a debt of $19 billion. Even though he was not Japanese and faced many challenges, he was able to revive the ailing Japanese automobile company, Nissan, within two years. While in Japan, Carlos Ghosn made culture a priority, was able to adapt to the Japanese culture, and even received praises from the Japanese workers and public. Carlos Ghosn’s strategy of forming cross-functional teams among the Japanese workers was hard at first due to their resistance; but the teams ended up bringing much success to the revival of Nissan, while also being the CEO of Renault. Carlos Ghosn, CEO of Renault and Nissan, is a perfect example of the formula for successful performance of a firm: P=f (L+C+S). Therefore, I recommend that all managers make culture a priority. In order for a firm to have successful performance in an organization, there should be a strong combination of leadership, culture, and strategy. Managers must be able to have a combination of all three to be able to run a company successfully in a foreign country. Leadership is culturally contingent; so being able to adapt to any culture will shape a managers leadership style, strateg and the mission and vision of an organization.
Leadership, Culture & Strategy
Leadership is the ability to influence others to achieve a common goal. Leadership is also the ability to influence people’s way of thinking, their attitudes, and their behaviors. Leadership is culturally-contingent; culture influences leadership in many ways. In order to motivate others, a leader needs to understand the needs, goals, value systems, and expectations of the people; no matter their culture or background. No single style of leadership works for every culture, country, or situation. The perception of what makes a successful leader varies from one culture to another. A leader is responsible for running the entire organization and has the responsibility of deciding what leadership style to use in each of the countries they are working in. An effective leader successfully carries out the mission and vision of the organization. For an organization to achieve their goals, effective leadership is crucial. Effective leaders know about the global business world, are able to adapt to any culture, and are organization-savvy. Effective loaders have a Global Mindset; a more flexible style of leadership that can be applied to any organization anywhere in the world. Carlos Ghosn, CEO of both French Renault and Japanese Nissan, was a successful leader with a Global Mindset. Carlos knew how to motivate his employees and knew how to work with...