Nissan Motor Manufacturing UK Ltd Sunderland Plant Talent Management Behind the Scenes at Nissan Dan

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Nissan Motor Manufacturing (UK) LtdSunderland
PlantTalent Management Behind the Scenes at
NissanDanny GriffithsPersonnel Director
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Contents

• Nissan - Overview
• Talent Management a) Processesb) Practices
  what is different?
• c) Pitfallsd) Pleasures
• 3. Summary

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1. Nissan - Overview
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Nissans Crisis to Turnaround
NRP
NISSAN 180
NISSAN Value-Up
FY00
FY02
FY05
Complete revival on track for profitable growth
Value up with sustained performance
Revive our Company
Commitment
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Global Nissan

• Company est. 1933
• Alliance with Renault on March 27, 1999
• 4 regions Japan, America, Europe, GOM
• Global retail sales 3.5m units
• Net revenue X billion yen
• Operating profit X billion yen
• Operating margin X
• Employees 182,000 (Europe
  13,500)
• Combined Nissan-Renault sales of approx. 6m
  units (9.6 of world market 4th biggest
  global automaker)

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Nissan Europe Sales Regions
RBU WEST France Netherlands
Total Sales in Europe06 540k units
RBU IBERIA Spain Portugal

• RBU CENTRE
• Germany, Austria Switzerland

NNE
EAST
UK
RBU NORDIC (NNE) Finland, Sweden, Norway Denmark
CEE
RBU CEE Hungary, Poland, Czech Republic Slovakia
WEST
CENTRE
RBU EAST Russia, Ukraine Kazakhstan
IBERIA
ITALY
UK
Sales networks for 20 countries
ITALY
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Manufacturing Logistics
Production FY06 424,000 vehicles

• Sunderland
• Qashqai
• Note
• Micra
• NDS

• Cantabria
• Forged parts

• Barcelona
• Pathfinder
• Primastar
• Diesel Engines
• NDS

• Avila
• Trucks

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Research Development
London Design
Cranfield Design Engineering
Brussels Design Engineering
Madrid Design Engineering
Barcelona Design Engineering
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Sunderland Plant most productive car plant
in western Europe
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Production Facts

• - Capacity 500,000 vehicles
• 2006 Production 301,000 vehicles
• 2007 Production est.396,000 vehicles
• - Weekly output c.7,000 vehicles
• 80 of NMUK output is exported to 45 markets
• Sunderland plant workforce c.4,400
• - Total investment in NMUK is more than 2.3
  billion

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Models
Primera
Micra
Micra CC
NOTE
QASHQAI
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2. Talent Management
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2. (a) Processes
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Talent Management

• Adopted an inclusive whole workforce approach
• not just management
• not just ticking the box

?
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Talent Management

• a series of activities which address

• Competency Management
• Performance Management
• Career Development
• Succession Management

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Talent Management Overview
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• What does this mean?

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2. (b) Practices
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What Makes Nissan Different?
- Clear Management Philosophy (Nissan Way)
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The Nissan Way
The power comes from inside The focus is the
customer, the driving force is value creation,
and the measurement of success is profit.
Mindset
Actions
Mindset
Actions
1. Motivate How are you energizing yourself
others?
1. Cross-functional, Cross-cultural Be open and
show empathy towards different views welcome
diversity.
2. Commit Target Are you accountable are you
stretching enough toward your potential?
2. Transparent Be clear, be simple, no
vagueness, and no hiding.
3. Perform Are you fully focused on delivering
results?
3. Learner Be passionate. Learn from every
opportunity create a learning company.
4. Measure How do you assess performance?
4. Frugal Achieve maximum results with minimum
resources.
5. Challenge How are you driving continuous and
competitive progress across the company?
5. Competitive No complacency, focus on
competition, and continuous benchmarking.
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What Makes Nissan Different?
- Clear Management Philosophy (Nissan Way) -
100 appraisal (single status / whole workforce)
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Performance Management Development Appraisal
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Production Organisation

• Production zone based
• Average 171 reporting ratio TLMS MS

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Nissan Way - built in
Example of Appraisal
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Objectives Driven
Example of Appraisal
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What Makes Nissan Different?

• - Clear Management Philosophy (Nissan Way)
• 100 appraisal (single status / whole workforce)
• No job description / Assigned contract status

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Philosophy Culture
Objectives driven

• - Quality
• - People
• - Teamwork
• - Communication
• - Objectives
• Flexibility
• Benchmarking

No demarcation dispute
Mobility entities
Mobility function
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Alliance with Renault e.g.

• - 412 Personnel exchanges since 1999
• Expatriates (employed by partner company)
• Alliance Projects (platform development)
• Common Companies (RNPO)
• Personnel exchanges to affiliate companies
  (e.g. Samsung)
• Several hundred people at any one time
  involved in Cross-Company Teams Functional
  Task Teams

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What Makes Nissan Different?

• - Clear Management Philosophy (Nissan Way)
• 100 appraisal (single status / whole workforce)
• No job description / Assigned contract status
• Role of the Supervisor

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Role of the Supervisor
Managing Director of his zone
N-TWI
N-TWI
Quality
Quality

• Must be-
• Highly skilled
• Highly motivated
• Trained in Genba Kanri

People
People
Facility
Facility

• Must have-
• Clear authority
• Full support

Process Change
Process Change
Safety
Safety

Cost
Cost
Operation
Operation
NPW
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What Makes Nissan Different?

• - Clear Management Philosophy (Nissan Way)
• 100 appraisal (single status / whole workforce)
• No job description / Assigned contract status
• Role of the Supervisor
• Policy deployment Hoshin Kanri / TQM/Kaizen

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TQM Approach
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Management System
PERMANENT
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Annual Objective Example
Example of objective deployment
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What Makes Nissan Different?

• - Clear Management Philosophy (Nissan Way)
• 100 appraisal (single status / whole workforce)
• No job description / Assigned contract status
• Role of the Supervisor
• Policy deployment using Hoshin Kanri / TQM
• Line Management driven Talent Management

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• Mgt Committee Ownership

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Nissan Career Committees

• Local Career Committee
• Proposal of succession plan for EVP-3
• Proposal of HPPs PPs
• Succession Plan for EVP-5 and EVP-4
• Identification of EPs

Preparation meeting with all function VPs

• Functional Career Committee
• Succession Plan for EVP-3 and core positions
• Identification of PPs and definition of their
  Career Plan
• Recommendations to Regional NAC (proposal of HPPs)

• Regional Career Committee
• Succession Plan for EVP-2 and core positions in
  NE
• Identification of HPPs and definition of their
  Career Plan
• Recommendations to Corporate NAC

• Corporate Career Committee
• Succession Plan for EVP-2 above and core
  positions
• Corporate HPPs their Development Plan

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What Makes Nissan Different?

• - Clear Management Philosophy (Nissan Way)
• 100 appraisal (single status / whole workforce)
• No job description / Assigned contract status
• Role of the Supervisor
• Policy deployment using Hoshin Kanri / TQM
• Line Management driven Talent Management
• Train and Develop with Purpose

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• Training Development

• - Competencies in line with Nissan Way
• Performance impacts on salary
• Nissan commitment to training e.g.
• average 5 off-the-job days training for all
  employees pa
• Leadership training for all 250 line managers
  05-06
• All 3,000 Manufacturing staff to complete (by
  2007) - NVQ II in Business Improvement
  Techniques - Business Awareness Course
• Trainee schemes (for MS, Technicians and
  Graduates)

• Take it seriously monitor results

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What Makes Nissan Different?

• - Clear Management Philosophy (Nissan Way)
• 100 appraisal (single status / whole workforce)
• No job description / Assigned contract status
• Role of the Supervisor
• Policy deployment using Hoshin Kanri / TQM
• Line Management driven Talent Management
• Train and Develop with Purpose
• Fast Communication Visual Management

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Verbal, face to face, fast
- Global videos and magazines - Managing Director
briefings - Local publications Plant
Corporate updates - Visual Management Boards -
Intranet - Start of shift meetings - Face to face
jumpdowns - Audits and surveys to measure
performance - Annual Appraisal

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2. (c) Pitfalls
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What goes wrong?

• - Too much fire-fighting
• Short term outlook
• Time to Appraise is at a premium
• - Reluctance to let your best people go
• Training development budget constraints
• Unexpected management changes

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2. (d) Pleasures
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What goes right?

• - Senior management drive the process
• No barrier to progression performance rules
• Capability competency not qualifications
• - Plans actually do mature to fruition
• People development examples for all to see
• Sunderland Plant people growing into European
• and Global Nissan positions
• 8/10 Mangt Committee more than one function

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Nissan case study- Senior Executive Example

• 1985 - Joined Sunderland Plant as Team Leader
• 1987 - Promoted to Supervisor
• 1989 - Promoted to Senior Supervisor
• 1991 - Promoted to Manager
• 1998 - Lateral Move to Engineering
• 1999 - Promoted to General Manager
• 2000 - Promoted to
• 2003 - Promoted to Posts explained
• 2004 - Promoted to
• 2006 - Promoted to
• 2007 - Promoted to

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• 3. Summary

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Summary

• - Need a clear Management Philosophy culture
• OD process supported by Senior management
• Formal Career Committee structure
• Local/Functional/Regional/Global
• Clearly deployed objective process
• Robust appraisal system whole workforce
• Commitment to Learning organisation

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SUMMARY
If I have seen further than others, it is
because I was standing on the shoulders of
giants (Sir Isaac Newton)
Talent Management is about finding developing
your giants