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Building emotional energy for renewal: Nissan (condensed version)

Author: Huy, Quy Nguyen INSEAD Area: StrategyPublisher: Fontainebleau : INSEAD, 2010.Language: EnglishDescription: 13 p.Type of document: INSEAD CaseNote: Latest version available via https://publishing.insead.eduAbstract: With staggering debts and losses, Nissan was in a desperate situation, producing good but plain-looking cars. How did Carlos Ghosn and a French team manage to implement massive changes in a company deeply embedded in the Japanese culture that was reputed to be nationalistic and averse to major change? How did Ghosn manage to cut costs and dramatically increase innovation at the same time?Pedagogical Objectives: While other cases about Nissan may stress the role of urgency, vision, or stretched objectives, and use Kotter’s model as an analytic framework to discuss what went right or wrong, this case highlights the valuable role of middle managers in strategy realization and the role of emotion management to facilitate strategic renewal. The model for emotion management is published in: Huy, Q. 1999. Emotional Capability, Emotional Intelligence and Radical Change. Academy of Management Review, 24(2): 325-345.
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Latest version available via <a href=https://publishing.insead.edu>https://publishing.insead.edu</a>

With staggering debts and losses, Nissan was in a desperate situation, producing good but plain-looking cars. How did Carlos Ghosn and a French team manage to implement massive changes in a company deeply embedded in the Japanese culture that was reputed to be nationalistic and averse to major change? How did Ghosn manage to cut costs and dramatically increase innovation at the same time?

While other cases about Nissan may stress the role of urgency, vision, or stretched objectives, and use Kotter’s model as an analytic framework to discuss what went right or wrong, this case highlights the valuable role of middle managers in strategy realization and the role of emotion management to facilitate strategic renewal. The model for emotion management is published in: Huy, Q. 1999. Emotional Capability, Emotional Intelligence and Radical Change. Academy of Management Review, 24(2): 325-345.

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