What were the drivers to successful strategy implementation at Nissan? To be successful an intended strategy must be implemented.

Strategic resources m ust 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. T his resulted in a lack of structure and Ghosn sought to transform the organizati on from that of a bureaucratic hierarchy to one based on cross-functional integr ation. 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 (CFTs) provided the foundation on which to restructure the organization and provided a sound base for successful implementation of the NRP. o Analysis of Nissans structure, using Mintzbergs framework, enables one to identify several key drivers that support successful strategy implementation: Due to the multinational nature of the organizations business environment, Nissan faced the challenge of dealing with market differences between various countrie s. This resulted in the diversification of products across global market, thereb y ensuring optimum market penetration. Co-coordinating mechanism was the standardization of outputs in terms of perform ance control measures, a clear aim/objective of the NRP. Innovative methods of working, focused on altering the staff mindset whilst ensu ring cost reduction. Quality cannot be ignored. Key to the CFT pilot was the discipline to quantify recommendations with workabl e figures. Nissans structure at a glance can be characterized at multi-dimensional however u pon closer inspection, it is apparent that the structure resembles more of a div isional split. Nissan became less connected from the center, highlighted by the lack of co-ordination between functions. Integrated strategic framework focused on: High specialization in the labour department Diverse departmentalization Wide span of control De-centralized authority Ghosn delegated authority to senior managers, promoting a sense of accountability Systems o Nissan addressed problems associated with coordination and co-operation by focusing on the instruments for communicating, decision making and controls r elated to operating and development. Changes to the personnel system proved to be a key driver towards successful imp lementation. Reward, recognition and promotion supported performance and alignment to strateg ic goals. Non-financial rewards, such as job satisfaction, are key to any performance mana gement system and the NRP sites a more integrated, direct style of interacting i n meetings as crucial to the process. Ghosn identified that there is a connection between strategy and operational eff ectiveness. In targeting financial controls, Ghosn focused on cost and quality, predicting t he need for Nissan to move away from traditional suppliers in favour of a more c ompetitive tendering process. Ghosn made use of a video connection to effectively communicate the future strat egy of the organization to all staff. The system of belief was further enhanced and all levels of staff across the org anization understood the future vision and mission. Boundary systems identify acceptable behavior and culture within an organization .

Ghosns leadership encouraged open discussion at senior management meetings, a key change when compared to the pre-Ghosn era. Strategic uncertainties emerging within Nissan were dealt with by Ghosn. He prom oted the idea that all staff should visualize the organization through an increa singly competitive, dynamic mindset. Reporting and consolidation improved through more efficient communication. Articulate the culture pre-Ghosn and what you believe were key elements in chang ing the culture. The culture pre-Ghosn: Characterized by a culture of blame Lack of well-defined areas of responsibility leading to questions concerning rol es and responsibilities. Power structures across several senior managers who had been with Nissan for man y decades. o Traditional Japanese culture was evident with business being distinguish ed by seniority and; o A continued, strong affiliation to stakeholders such as the keiretsu sup plier companies. Formal communication methods. Key elements in changing the culture: Effective leadership clear strategic vision cascaded down to staff in all positi ons. Ghosns ability to articulate objectives to all staff, effectively manage objectio ns and lead the cultural change from the front. Commitment to breaking down Keiretsu Would Ghosns approach have worked in SA? It is difficult to ascertain whether or not Ghosns approach would work in SA. One can however identify that key to his leadership is the emphasis placed on Cross -Functional Teams. In Ghosns view, these teams were the key to his success in rev italizing Nissan. Ghosn explained to employees at all levels of the company that they themselves possessed solutions to Nissans problems. According to Ghosn, it was neither top-down nor bottom-up. It was the way of both top-down and bottom-up. I believe that this approach will resonate with employees within South African industry. The approach to ensure that the strategies identified by CFTs are imple mented by senior management within an organisation is a concept that I believe a lready exists in SA. It must however be said that there are key differences in c ulture and work ethic between SA and Japan however the approach by Ghosn s would work based on the all-inclusive nature of ensuring existing top management buyin. Consideration must be given to the political environment within South Africa as it creates unique challenges and barriers.