Bernard Delmas and Andrew House
Building
the
new
Nissan
Independent
outside
directors
Bernard
Delmas
and
Andrew
House
The first 18 months: Achievements and impressions
Bernard Delmas: Nissan is a different organization than it was when we joined the board. I’m delighted to see the company putting the past executive misconduct issue behind it and being able to focus on its core competencies. It’s exciting to look at the paper and see Nissan featured for new products like the Nissan Ariya.
Before the COVID-19 pandemic, I visited Nissan North America’s headquarters and met many employees.
The brand loyalty for Nissan as well as for its customers made a big impact on me. Succession and talent planning is one area we’re focusing on because I think Nissan has a great future and we’d need to retain and develop talent to support that.
Andrew
House:
The
critical
word
to
sum
up
the
period
since
we
joined
the
board
is
“reinvention.”
A
company
has
few
opportunities
to
undergo
a
full
reinvention,
but
that
was
necessary
for
Nissan.
You
must
retain
the
best
of
the
organization,
its
DNA
and
its
history,
while
learning
new
skills.
For
Nissan,
this
means
retaining
its
diversity
and
global
mindset,
which
sets
it
apart
from
other
Japan-headquartered
organizations.
It
means
retaining
Nissan’s
commitment
to
innovation
and
that
will
remain
the
lifeblood
of
the
organization.
But
Nissan
needed
to
change
fundamentally
in
terms
of
culture,
organization
and
management
style.
The
new
Nissan
Way
and
reinvented
logo
sent
strong
messages,
internally
and
externally,
that
there
is
a
new
management
team
and
philosophy,
but
that
the
best
of
the
organization
still
remains.
As
a
member
of
the
Nomination
Committee,
the
selection
process
of
the
new
management
team
was
a
critical
achievement.
It
was
fair,
transparent
and
fact-based.
It
resulted
in
an
excellent
management
team
that
can
break
with
the
past
and
take
Nissan
forward.
The future of governance at Nissan
House:
Nissan
has
a
relatively
new
management
team
and
a
board
with
a
majority
of
independent
outside
directors
for
the
first
time.
Management
must
make
the
necessary
decisions
to
run
the
company.
The
board’s
role
is
to
hold
management
accountable
for
its
commitments
on
behalf
of
employees
and
shareholders.
As
this
new
form
of
governance
is
a
radical
shift
from
the
past,
there
is
still
a
need
to
establish
“institutionalized
governance”
within
the
organization.
Any
form
of
governance
is
a
framework
and
a
set
of
rules.
Management
must
lead
by
example
in
order
to
make
those
rules
fundamental
in
the
way
Nissan
conducts
business.
Delmas: Progress still needs to be made in embracing the three-committee governance structure, but I think the willingness of Nissan’s management is clearly there. It’s a matter of continuing to work things out.
Improving corporate value as an outside voice
Delmas: Independent outside directors bring different perspectives due to our diverse and past experience. Our duty is to represent shareholders, especially minority shareholders, thus, we never ask the same questions as we are from different backgrounds. Personally, I have worked for decades in the automotive industry internationally, particularly in Japan and the rest of Asia, by managing businesses and R&D for Michelin. I have a lot of benchmarks and experiences to draw on. Also, because I’m French, I contribute an European perspective to Nissan, which is global and deals with many different markets and cultures.
House:
The
best
board
members
are
those
that
can
help
you
see
outside
your
company,
culture
and
industry.
This
can
help
you
spot
new
trends,
threats
and
challenges.
I
have
experience
managing
organizations
in
Japan,
Europe
and
Silicon
Valley.
I
actually
led
a
company
through
a
turnaround.
That
experience
helps
me
understand
the
challenges
Nissan’s
management
is
facing.
I
also
led
a
business
through
a
tremendous
shift
in
business
model,
consumer
taste,
and
product
distribution.
I
understand
how
fast
an
organization
must
change
to
succeed.
Nissan
is
operating
in
an
environment
where
the
future
is
more
uncertain.
The
board
must
not
only
validate
management’s
plans
but
also
ensure
that
those
plans
are
sufficiently
flexible
to
adapt
to
the
shifting
environment.
Agility and balance
Delmas: I believe the ongoing pandemic is driving change and accelerate the CASE transformation of Automotive industry. The industry is no longer about only building cars, but also offering new mobility services, connected cars, autonomous cars and so on. Management must be visionary to make key decisions and flexible to change. One task ahead of us in 2021 is to set this post-recovery direction and ensure that Nissan will execute and transform with agility.
House: The companies that succeed in the long term are those that strike appropriate balances. The balance between understanding the potential of the future, threats and challenges, and understanding their core skills and competencies. They must be adaptable while retaining the core skills that make the company great.
The road ahead: Change on the horizon
House: The new generation of consumers has a different relationship and personal attachment with brands. Nissan is in a wonderful spot because it has the heritage of a great brand and exciting products coming down the pipeline to reignite that consumer passion. Building that trust is one of the key strategies for creating a winning brand.
Delmas: People are always key. Nissan needs to have the right talent for the future and make sure they can mature and advance within the company. I have had professional contact with Nissan since 1985 and the employees’ professionalism and motivation has always impressed me. Nurturing and motivating talent is another important key to long-term success. The Compensation Committee has focused largely on executive affairs so far, but the entire management structure is important for success as a company.
Published in March 2021