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Family businesses must learn from Ghosn
As investigations continue and mounting evidence of financial improprieties is being pieced together, expectedly Carlos Ghosn’s detention was extended for another 10 days.
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Newspapers feature articles on Carlos Ghosn, chairman of the alliance between Renault SA, Nissan Motor Co. and Mitsubishi Motors Corp., in Yokohama, Kanagawa Prefecture, Japan, on Tuesday. France is seeking an interim leader for Renault SA, distancing itself from Ghosn after he was arrested in Japan on allegations of financial misconduct. (Bloomberg/Akio Kon)
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s investigations continue and mounting evidence of financial improprieties is being pieced together, expectedly Carlos Ghosn’s detention was extended for another 10 days. What transformed the man nicknamed “Le Cost Killer”, considered as a presidential contender in Lebanon and worshipped like royalty in the auto industry, to commit career ending lapses? What drove Ghosn to compromise his ethical values?
A Forbes article penned by Tom Eisenmann is an eye opener. He describes ego and arrogance accurately: “It’s all in the founder’s head, the drive to build something great, the resilience to dust yourself off when you repeatedly get knocked down but inside a founder’s head may also be delusional arrogance, an overly impulsive ‘ready-fire-aim’ bias for action, a preoccupation with control, fear of failure and self-doubt.”
When the leader fails to recognize it in himself, admit to it, or take steps to correct it, arrogance can demoralize his workforce and undermine the success of his business. It is dangerous because it can lead to making poorly flawed and unplanned decisions and in Ghosn’s case, he manifested these disorders so the hard fall was just a matter of time.
Personally, what was unclear to me was the role of Nissan Motors board of directors. With their oversight powers, why did they allow such impropriety to happen during their watch? Why did they allow their chairman (Ghosn) to dictate policies contrary to the best interest of the organization?
