Rose Ghosn. Direct employee involvement is the best way to solve the problem. precision manufacturing company
Carlos Ghosn is known for having bailed out four companies in Brazil, the United States, France and Japan, the president of Eagle Eye, the world’s top ten management wizards. One of the most spectacular manufacturing “cost killers” in the world was the move to Nissan in 1999, which took less than four years to revive.
In 1999, Ghosn was recommended as Nissan’s president. Prior to that, he was a well-known “cost killer” at Michelin Tire and Renault Motors. precision manufacturing company
When Renault and Nissan formally established a partnership, as Renault president Ghosn was identified as the best candidate for reviving Nissan.
When Ghosn arrived at Nissan, which had been losing money for seven years, Nissan was in deep crisis, likened to “a broken ship on fire,” close to bankruptcy. precision manufacturing company
Ghosn believes that the first step to solving the problem is to really understand what the company’s difficulties are. precision manufacturing company
As a result, he found that there were five main reasons for Nissan’s plight: a lack of clear profit orientation; Do not pay attention to customer needs, but too keen to catch up with competitors; Lack of cross-functional, cross-border and hierarchical cooperation within the company; Lack of sense of urgency; Lack of a common vision or a common long-term plan.
As a result, Ghosn made two decisions: first, that all Nissans must contribute to the revival of the company; and second, to remodel Nissan as an efficient car design, production tool and sales company. precision manufacturing company
The first decision was his demand for Nissan, and the latter was his strategic goal for Nissan.
Then Mr Ghosn led Nissan in a war of backwaters, closing factories that were previously unacceptable to Japanese companies and selling off all non-major assets. Compression of procurement costs (Japan’s steel industry due to the arrival of Ghosn has also undergone some changes) and so on.
In July 1999, under the leadership of Ghosn, Nissan established 9 cross functional team, are responsible for the business development, procurement, logistics, research and development, market, financial and other different projects, they have a common goal: the cause of development, improve the efficiency and reduce cost. A responsible person of the 9 teams directly involved in the revival of Ghosn Nissan the plan. precision manufacturing company
Of course, Ghosn is very clear: “we just completed the task 5% plan, the remaining 95% lies in the execution of the plan.” therefore, Ghosn measures are: clear focus and responsibility system, the implementation of strict control, quantitative assessment, all reports must be based on facts and on the basis of the data, and the key object with the index data.
In addition, a flexible incentive mechanism is established for promotion and reward based on the contribution of size.
Of course, in the implementation plan, from time to time some friction and controversy. But Ghosn think this is very normal, but also to stimulate staff participate in the rescue business is very good. “To some extent, the debate is healthy and good. In fact, I often encourage my subordinates for each argument. People have their own ideas, different ways of seeing things. The best solution is often come from the debate. A policy is the most basic” direction “, the direction is not debatable.” precision manufacturing company
At the same time, Ghosn visited thousands of people talking in the office. “I want to listen to every employee of Nissan revival advice. Really, I know that Nissan revival plan let many people feel pain, this is accompanied by a sacrifice pain. But for the Nissan regeneration, we have no choice.” Ghosn recalls. precision manufacturing company
Later, Carlos Genn pointed out: “this is not the solution I found out of the company. I want to know that the best way to solve the problem is to get employees directly involved.”
In the first year, Nissan has achieved its best financial performance in history, making a profit of $2 billion 700 million. precision manufacturing company
Then, in the 2001 fiscal year, Nissan recorded a sales record of 48 billion dollars, making a profit of 2 billion 900 million dollars. Ghosn won the respect of Nissan, even Japan and the global automotive industry. It is called the most dramatic event in the history of Asian business.