Advice from a fellow outsider
Nissan CEO and Sony board member Carlos Ghosn on making an impact on an old-line Japanese company.
By Alex Taylor

(FORTUNE Magazine) – Carlos Ghosn has held jobs on four continents and speaks four languages, though not Japanese. FORTUNE's Alex Taylor asked Ghosn, with new Sony chief Howard Stringer in mind, how he managed as a CEO in a Japanese company.

IN JUNE 1999, WHEN I came to work for Nissan in Japan, I came as a pure outsider. My management experience had been shaped by living and working in several countries around the world, but I arrived in Tokyo with no preconceived ideas about the people or the culture. Japan was a totally new experience. How was I received initially? With curiosity and skepticism.

Because I joined when Nissan was in crisis, people were naturally wary. I was convinced that, as a foreigner coming to Japan, I would have no chance, zero, of budging the system one inch. My conviction was based on the experience of having lived on several continents. People who try to impose one system onto another only wind up destroying it. Nissan had to be changed from the inside.

In Japan you cannot implement change quickly unless you clearly explain why change is needed, how it will be done, and what is the committed outcome. Once the men and women of Nissan were given a clear vision, a clear strategy, clear priorities, and a framework for action, they did change. By far the most distinct disadvantage related to the language difference. It was a bit of a shock to have myself suddenly embedded in a fairly opaque Japanese organization with all my reference points gone. A company leader has to be a good communicator. Because most conversations occurred through translation, direct communication was always possible, but difficult.

Being a company "outsider"--someone who was both non-Nissan and non-Japanese--did have some advantages. I was not linked to the company's past or to the decisions that led to its decline, so I was initially given the benefit of the doubt. I was more willing to turn the page than someone who would have been bound to past performances or existing practices.

I was determined to become assimilated, without sacrificing my individuality or originality. I tried to be transparent to the people around me. Being observant, respectful, and willing to learn helped me overcome most cultural barriers. As an outsider arriving with a somewhat credible track record of performance, I was able to bring in new ideas and challenge the status quo. Results came quickly, skepticism was quieted, and the revival of Nissan justified our actions.

Ultimately, my experience has confirmed my belief that nationality is not a determining factor in success. The key is results. In Japan, as in every other country, business results can be quantified. Numbers are universal, having the same value in any market and in any time zone. At the end of the day, the thing that really matters is your performance, not your passport.