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[Workplace Story] Allowing employees to participate directly is the best way to solve problems

Carlos Ghosn’s direct participation of employees is the best way to solve problems. aluminum heat sink

Carlos Ghosn is famous for having successfully rescued four companies in Brazil, the United States, France and Japan. This “Global Hawk CEO” of the top ten management wizards in the world, and the “cost killer” of the manufacturing industry in the world’s top names, was the most brilliant one in Nissan’s auto industry in 1999 and it took less than four years to revive it. Heroic.

In 1999, Ghosn was recommended as the president of Nissan. Prior to this, he worked for Michelin Tire and Renault Motors and was a well-known “cost killer”. aluminum heat sinkWhen Renault and Nissan formally established a cooperative relationship, Ghosn, President of Renault, was identified as the best candidate for revitalizing Nissan.

When Ghosn came to Nissan, Nissan, which had been losing for seven years in a row, was already in deep crisis. He was compared to “a ship that has already caught fire” and was on the verge of bankruptcy. aluminum heat sink

Ghosn believes that the first step in solving the difficulties is to really understand what the company’s difficulties are.

As a result, he found that there are five major causes of the Nissan dilemma: lack of a clear profit orientation, lack of attention to customer needs, and excessive keenness to catch up with competitors; lack of cross-functional, cross-border, and cross-level cooperation within the company; lack of sense of urgency; Lack of a common vision or common long-term plan.

Thus, Ghosn made two decisions: First, all Nissan people must contribute to the company’s revival; Second, Nissan is reshaped into a high-performance automotive design, production tools and sales companies. aluminum heat sink

The previous decision was a request he gave to the Nissan people. The latter decision was his strategic goal for Nissan.

Subsequently, Ghosn led Nissan to a back-to-back battle, shut down a number of factories (which was previously unacceptable to Japanese companies), sold all non-core assets, and reduced the cost of procurement (the Japanese steel industry Ingol’s arrival also occurred. Change) and so on.

In July 1999, under the leadership of Ghosn, Nissan established 9 cross-functional teams responsible for business development, procurement, logistics, R&D, marketing, finance, and other different projects. They have a common goal: to develop their businesses and improve efficiency. And cut costs. The heads of the nine teams directly participated in Ghosn’s plan to rejuvenate Nissan. aluminum heat sink

Of course, Ghosn is very clear: “The plan is only completed 5% of our mission, and the remaining 95% is due to the implementation of the plan.” To this end, Ghosn’s measures include: clear focus and accountability, strict monitoring, and implementation For quantitative assessment, all reports must be based on facts and data, and each key objective has indicator data.

In addition, a flexible incentive mechanism is established to promote and reward on the basis of contribution size. aluminum heat sink

Of course, in the implementation of the plan, there will be some frictions and disputes from time to time. But Ghosn thinks this is normal, and it is very good for inspiring all employees to participate in saving the company. “In a way, the argument is healthy and good. In fact, I often encourage my subordinates to argue. Everyone has their own ideas and different perspectives of things. The best solution is often to argue. The most basic one is that ‘does not deviate from the direction’ and the direction is indisputable.”

At the same time, Ghoun looked for thousands of people after he took office. “I would like to hear from every staff member about the recommendations of the Nissan Revival. Seriously, I know that the Nissan Revival Plan has caused many people to feel pain. This is a pain that comes with sacrifices. But for the regeneration of Nissan, we have no choice. Ghosn recalled. aluminum heat sink

Later, Carlos Ghosn stated: “This is not a solution that I have found outside the company. It is important to know that direct participation of employees is the best way to solve the problem.”

In the first year of implementation, Nissan achieved the best financial performance ever, with a profit of 2.7 billion U.S. dollars.

Subsequently, in fiscal year 2001, Nissan hit a sales record of 48 billion U.S. dollars and made a profit of 2.9 billion U.S. dollars. Ghosn has thus won the respect of Nissan Corporation, and even Japan, the global automotive industry, and is known as the most dramatic event in Asian business history. aluminum heat sink

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