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BME5001
Leadership and Managerial Skills
Carlos Ghosn and Nissan Motor Co., Ltd

BME5001

Leadership and Managerial Skills

2014

According to Pearce (2012,pp162) *the practical interest in cultures began with a fascination with the power and strength of multinational Japanese corporations. It wasn’t one thing the Japanese did. Rather, management practices, employee perceptions, expectations and social environments all seemed to reinforce and work in concert to create Japanese corporations’ success”1.

Hence, it is intriguing to have Nissan Motor Co Ltd (Nissan) as a case study feature; for an absolutely contrasting reason. Equally fascinating was that Nissan was revived by a non-Japanese leader; Chief Operating Officer (COO) - Carlos Ghosn
(Ghosn).
Many reasons could have brought about Nissan’s dire state.

Since “what

successful leaders do depends much on their particular situations than it does on matching cultural leadership practices to stereotyped images of another culture”1, this paper would focus on examining Ghosn’s leadership practices which revived Nissan.
“Leadership is the guiding of others towards an objective”.1 To do that, “leaders must diagnose and clearly understand the situations in which they find themselves”1.
When Ghosn arrived at Nissan, he assumed nothing, hit the ground to observe and listen to everything that was said and practiced by employees working the floor right up to divisional presidents; in order to understand the full aspect of the company, bottom up5. Reference to the Four Capabilities Framework3 (FCF), Ghosn was Sensemaking; a critical step which “enables leaders to have a better grasp of what is going on in their environments, thus facilitating other leadership activities such as Visioning, Relating, and Inventing”2.
Sensemaking indeed enabled Ghosn to “put together the puzzle”5, allowing

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