Nissan Chief Executive Reveals Remorse and Accountability in Face of Failed Expectations
Give Makoto Uchida credit. With Nissan sustaining a $6.3 billion loss for the fiscal year, its first deficit since 2008/09, the president and CEO of the Japanese-based automaker knew he must, with honor, own the dishonor of his shortcomings if he was going to maintain support to lead.
He stepped into the scrutiny and negative emotions expressed in his direction and showed courage, humility, remorse and accountability, responses not always common among executives.
Uchida however is well aware of the company climate at Nissan, the organization already on a rocky road reputation wise after the scandal involving deposed CEO and chairman Carlos Ghosn.
Uchida decided, the assumption here it being it was of his own volition, to surrender half his pay, a significant show of shame and ownership in Nissan’s losses.
He apologized for the failed expectations to angry shareholders and stepped out on a limb, promising to lead a recovery within three years with a strategy of cutting costs and reallocating resources towards electric cars and automated driving.
His guarantee was bold and clear:
“I promise to bring Nissan back on a growth track,” Uchida said, also stating “Nissan will reorganize excess assets and sustainably pour in resources into our core markets (of North America, China and Japan),” and “By cutting fixed costs significantly, we will aim for a reliable recovery and steady growth.”
Uchida’s credibility is currently weak and he’s operating at a trust deficit. His reputation capital therefore is painfully low. Yet he’s still in authority, with opportunity to rebuild Nissan, credibility, trust and his reputation.
Uchida has the experience, skills and leadership acumen to help Nissan rebound yet he had to earn that opportunity again after the company’s financial nosedive, shame and shareholder suffering.
He will long feel the doubt in his leadership. Anger and criticism will remain directed at him yet if Uchida will retain his poise, improve company decision making in navigating the company through crisis, the odds are in his favor to help Nissan, with its track record, prove financially resilient.
Michael Toebe writes the Red Diamonds Newsletter, Red Diamonds Features and Red Diamonds Essays (all on Medium) and is also the host of the short-segment Red Diamonds Podcast. He is a specialist for reputation, professional relationships communication and wiser crisis management, for individuals and organizations.
Contact: RedDiamondsMedia@Gmail.com
