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Carlos Ghosn’s Management Style

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I-Carlos Ghosn’s Management Style

Carlos Ghosn, clearly an extraordinary man with an impressive list of accomplishments already under his belt at a relatively young age. But what is it exactly about his management style that makes him stand-out from other leaders, why is it that so much attention has been showered onto him? In the first part of this report that is exactly what we will try to uncover.

Ghosn truly does have a unique management style, one that is perfectly suited to today’s global economic reality. In our view the following management practices are the ones that have been integral to the success of not only Ghosn’s turnaround of Nissan but also in his previous accomplishments at Michelin and Renault:

Adaptability

What really strikes you as you read and learn more and more about Ghosn is that he truly does not have any preconceptions or stereotypes. Whether he is facing a new and unknown country and culture or a situation within a company, Ghosn’s approach is what he calls “a clean sheet of paper.”

What Ghosn has been able to do so well is transcend what Peter M. Senge describes as “Mental Models” in his article The Fifth Discipline: The Art & Practice of the Learning Organization. As we have seen in the Senge’s article whenever you limit yourself to your Mental Models you reduce you ability to react effectively to changes in the environment.

Senge uses the example of oil companies unable to effectively deal with changes in market conditions following the creation of OPEC because of their own Mental Models in contrast to the success of Dutch Shell under the same conditions because they had institutionalised a process of breaking down Mental Models.
In Nissan’s case, one of its Mental Models was the reluctance to let go of a bureaucratic management structure and the keiretsus (Traditional Japanese supplier/manufacturer…...

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