Carlos Ghosn on the qualities that make a good leader

Carlos Ghosn, who recently stepped down as CEO of Nissan, is well known for turning around the once struggling firm, returning it to profitability initially through cost cutting – earning himself the nickname ‘Le Cost Killer’ and then investment in highly innovative products, including the sector-busting Nissan Qashqai.

Ghosn has given up day-to-day running of the firm to concentrate on revitalising Mitsubishi, which he recently added to the Renault -Nissan Alliance with the purchase of a 34% stake in the firm.

The Renault, Nissan, Mitsubishi alliance is the third biggest car maker in the world by volume, behind Volkswagen and General Motors, with deliveries of just less than 10 million cars in 2016. According to Ghosn, “This scale gives us an advantage over most other automakers, and a disadvantage to none.”

Ghosn, 62, will remain chairman of Nissan, a position he also holds at Renault and Mitsubishi. He is also CEO of Renault and has pledged to stay in that role while a long-term plan is established for the firm.

Ghosn will be replaced as CEO at Nissan by Hiroto Saikawa, 63. Saikawa left Tokyo University in 1977 to join Nissan and has worked there ever since, running American and European operations as well as overseeing global purchasing, manufacturing, supply chain management, research and customer satisfaction as chief competitive officer. He has also been on Renault’s board for the past decade.

Ghosn said: “There’s a point in time where you have to be realistic about how many things you do and you can do well. This is the trigger. There’s a moment when you have to pass the baton to someone else. I’ve always said I would love to have a Japanese to be my successor and Saikawa-san is somebody I have been grooming for many years.”

Ghosn will now focus on turning around Mitsubishi. As Ghosn says in a blog on the Nissan corporate website, “The fate of Mitsubishi Motors depends not only on its top leadership, but also on the growth of leaders within the company.

Leadership qualities unplugged
Here’s what Ghosn has to say, in his words:

“First, a leader is somebody who can deliver performance. He or she systemically delivers, and has long experience delivering on challenges. This sometimes means we must speak up to identify problems or present controversial opinions. This is not always easy for Japanese leaders, for cultural reasons. When we first held alliance board meetings, almost all of it was in French. I had to tell my Renault colleagues to be quiet and listen to their Nissan counterparts. I encourage more Japanese leaders to speak up whenever necessary. This is critical to delivering results.

Second, a leader needs the ability to engage with people. When you're heading a company, people need to connect with you. If they see you as stiff or cold or not easy to understand, they're not going to listen to you, and a lot of motivation and engagement is going to be lost. In other words, a leader must have the capacity for empathy.

Third, a leader needs industry intelligence. Electric cars, zero-emission vehicles, smart cars, self-driving technology, stiffer regulations and new competition are all transforming the auto market in huge ways. If you don't have industry intelligence, it doesn't matter how much empathy you have, or what kind of performance you can deliver – you will have a lot of difficulties if you are not constantly learning, understanding and acting.

I believe no one is born a good leader. Leaders become leaders when they are recognised as such by other people. When I came to Japan in 1999, I was viewed with deep skepticism by employees. But I worked hard to deliver performance, connect with people and always build my industry intelligence. Through this process, I have gained the trust of our employees, and together we have delivered results. I believe Mitsubishi Motors can do the same.”