Case Assignment

Case Study 4

1. What are the strengths and weaknesses of Carlos Ghosn’s approach to change leadership at Nissan? To what extent has he succeeded in mobilizing adaptive behavior on the part of employees?

Ghosn’s approach to change had much strength, which is evident in the great success that he achieved. Ghosn knew that he would not be successful if he went into the company dictating change. His first move, which was a wise one, was to go out into the field and talk to the employees. He asked them questions like what they thought was going right and/or wrong, and what they would suggest to make things better. He took notes and listened to them for three months. He met with more than a thousand people, and drew up his notes on what he learned. From his notes that he gathered, he then announced the changes. By talking with the employees first, Ghosn was able to build a relationship with the employees and include them in the change. Talking directly to the employees was a strength in Ghosn’s approach to change and also that he was honest. He told them directly what he found to be the problem and he clearly stated his expectations. He demanded that his expectations be met and challenged employees to try harder. This seems that it could have been intimidating to employees; however, they continued to perform even after their ideas were rejected. Because of these strengths, Ghosn was successful in mobilizing adaptive behavior on the part of employees. He did this by starting with the articulation of a sense of purpose and direction for the organization along with setting demanding performance goals. Employees were then able to adapt by finding new ways to meet the expectations while following the company’s purpose and direction.

2. Using the core tasks of leadership (Exhibit 8-1), evaluate Ghosn’s change leadership at Nissan.

The first core task of change leadership is to develop and articulate clear and consistent sense of purpose and direction for the...