Lesson to learn from Ghosn’s fall from grace
THE stunning downfall of the flamboyant CEO Carlos Ghosn is a lesson that when leaders confer unlimited authority and power to themselves, they believe they are infallible.
Ghosn was hailed as “Mr Fixit” for steering a struggling Nissan to profitability. And that too after the Japanese car manufacturer, at one time among the most popular in the world, against all traditions and norms consented to having a foreigner as its head.
When conventional wisdom has it that rival manufacturers, despite being in trouble, could never be brought together, Ghosn forged and ran, with uncanny success, the Renault-Nissan-Mitsubishi Alliance, making it the world’s largest car maker.
But all that took a catastrophic downturn late last year when Ghosn was arrested, indicted, released on bail, and a few days ago rearrested on charges of serious financial fraud and misuse of company funds and assets to carve for himself and his family an ostentatious lifestyle.
As we know, throughout history and in contemporary times, even in our own country, it is not uncommon for some in positions of power and authority to think that no matter what they say or do, they cannot be wrong, that they are the smartest person in every situation, and that the rules do not apply to them.
It is imperative that leaders, big or small and in whatever environment, do not fall prey to the corrupting influence of power.
Surround yourself with people who challenge you to improve, not hangers-on who, for their own measly gain, will tell you what you want to hear and who downplay your shortcomings and misdemeanours.
Be careful with whom you groom to stand with you and, possibly, in your place; the one who will unquestioningly do your every bidding may be the very person who will expose your most intimate secrets, let you down and even challenge you, as was the protégé-turned-whistleblower in the case of Ghosn.
Instead, as best as you can, have around you honest and dedicated persons, including those possessing capabilities you might not have and who complement your own. Recognise and reward them based only on merit and not for being “yes persons”.
Remember also the rules and principles that govern your entity and keep your business absolutely above board.
Beware of those little compromises you make that could add up and soon lead you to act with impunity in the face of massive corruption.
Leaders owe it to themselves to set a shining example for others to follow.