What were the drivers to successful strategy implementation at Nissan?
To be successful an intended strategy must be implemented. Strategic resources must be developed, deployed and controlled correctly. An organizations structure and internal processes are key drivers to successful implementation.
The Nissan Renewal Plan (NRP) was driven by the following key drivers:
• Structure o Pre-Ghosn, managers did not have well-defined areas of responsibility. This resulted in a lack of structure and Ghosn sought to transform the organization from that of a bureaucratic hierarchy to one based on cross-functional integration. This was accomplished via the abolishment of ridged functional silos. o Key reasons for the realignment of the structure:
 Reduce Costs
 Optimize Growth & Competitiveness o Decision to form cross functional teams (CFT’s) provided the foundation on which to restructure the organization and provided a sound base for successful implementation of the NRP. o Analysis of Nissan’s structure, using Mintzberg’s framework, enables one to identify several key drivers that support successful strategy implementation:
 Due to the multinational nature of the organization’s business environment, Nissan faced the challenge of dealing with market differences between various countries. This resulted in the diversification of products across global market, thereby ensuring optimum market penetration.
 Co-coordinating mechanism was the standardization of outputs in terms of performance control measures, a clear aim/objective of the NRP.
 Innovative methods of working, focused on altering the staff mindset whilst ensuring cost reduction. Quality cannot be ignored.
 Key to the CFT pilot was the discipline to quantify recommendations with workable figures.
 Nissan’s structure at a glance can be characterized at multi-dimensional however upon closer