Building Emotional Energy for Renewal
Building Emotional Energy for Renewal
Case Study for the revolution for Nissan
In 1999, Renault and Nissan announced their alliance. Renault injected $5.4 billion for an equity stake of over 36% of Nissan and gain access to Nissan’s engineering and manufacturing expertise; Nissan benefit from Renault's marketing and design. Promising as it first appeared, there are, however, lots of challenges. Carlos Ghosn was appointed to be the revolution manager.
Building up the team
Ghosn handpicked 20 executives accompanying with him, appointed COO as new President, provided stock option for 30 executive officers, introduced new language policy and clarified definition of terminologies.
CFTs
Cross Functional Teams, made by middle managers, aimed to enhance the communication across functions, boarders, and hierarchical lines. After several rounds of tough challenges, the CFTs finally came up with recommendations that met Ghosn’s expectation.
NRP
On 18 October 1999, Ghosn announced the restructuring plan to the general publics – NRP (Nissan Revival Plan)
Focusing Action
To focus on action, Ghosn Praised the loyalty and enthusiasm, pressed the employees for the top results, focus on the implementation, rather than the plan and closer cooperation with the union leaders.
Promote Innovation
He did upscale of remodeling of Nissan’s technical center, had closer cooperation between Japanese designers and US counterparts and recruited new engineers to develop new models.
As a result, in 2000, it was making its headway, with $1.5 billion net profit (vs. $3 billion loss ), purchasing cost but by 10% and workforce cut by 9,000. In 2011, its sales went up 1.9% to $50 billion, and the operation margin went up from 1.4% to 4.75%, with cost cut by 18%
Case Study for the revolution for Nissan
In 1999, Renault and Nissan announced their alliance. Renault injected $5.4 billion for an equity stake of over 36% of Nissan and gain access to Nissan’s engineering and manufacturing expertise; Nissan benefit from Renault's marketing and design. Promising as it first appeared, there are, however, lots of challenges. Carlos Ghosn was appointed to be the revolution manager.
Building up the team
Ghosn handpicked 20 executives accompanying with him, appointed COO as new President, provided stock option for 30 executive officers, introduced new language policy and clarified definition of terminologies.
CFTs
Cross Functional Teams, made by middle managers, aimed to enhance the communication across functions, boarders, and hierarchical lines. After several rounds of tough challenges, the CFTs finally came up with recommendations that met Ghosn’s expectation.
NRP
On 18 October 1999, Ghosn announced the restructuring plan to the general publics – NRP (Nissan Revival Plan)
Focusing Action
To focus on action, Ghosn Praised the loyalty and enthusiasm, pressed the employees for the top results, focus on the implementation, rather than the plan and closer cooperation with the union leaders.
Promote Innovation
He did upscale of remodeling of Nissan’s technical center, had closer cooperation between Japanese designers and US counterparts and recruited new engineers to develop new models.
As a result, in 2000, it was making its headway, with $1.5 billion net profit (vs. $3 billion loss ), purchasing cost but by 10% and workforce cut by 9,000. In 2011, its sales went up 1.9% to $50 billion, and the operation margin went up from 1.4% to 4.75%, with cost cut by 18%