Nissan: Success Story of a Dramatic Turnaround

| Success story

Nissan Revival Plan to strengthen financial control capability achieved with help from Capgemini.

“ Without Capgemini, this project would not have happened. We needed the leadership, expertise, and knowledge of Capgemini to deliver in the period that we had committed to. ”Ron Petty, Chief Financial Officer, Nissan Motor (North America)

The Situation

To return Nissan back to profitability and strong brand recognition, management engaged an international team of 200 executives to conduct a detailed study. The result was a three-year company-wide turnaround program called the Nissan Revival Plan (NRP). Among many critical elements of NRP was a need to revolutionize Nissan’s financial controlling capability on a global, group-wide basis.

The Solution

Capgemini won the confidence of Nissan’s management and was entrusted to help address short- and long-term objectives.

There was an immediate need to track NRP results against Key Performance Indicators.

Capgemini designed and deployed a web-based system within three months. An important element of the NRP, this was designed to strengthen Nissan’s financial controlling capability. The solution was the first of its kind in Japan, and well received by Nissan.

Long-term goals included aligning Nissan’s financial reporting to regulatory and international accounting standards like IAS and GAAP. Capgemini acted as program manager to help Nissan drive financial control aspects of the NRP. The solution included workshops to scope financial accounting systems and processes.

SAP was selected as an appropriate ERP platform with modules including FI/CO, AM, AP/AR, MM, SD, PS and IM. Packages from Hyperion and Cartesis were also deployed. Following implementation, systems were rolled out in phases spanning multiple locations.

The Result

In the two years since the NRP was launched, Nissan transformed itself into a dynamic company with record profits. The NRP was intended to re-establish a firm financial foundation for Nissan to build a strategy of lasting profitable growth. Nissan announced that it had achieved all the commitments made in the NRP two years after launch�€”a full year ahead of schedule.

In conjunction, Nissan’s CEO posted the company’s best-ever full-year earnings and the fourth consecutive record half-year operating profit. These were direct benefits of the NRP. It enabled Nissan to turn the corner and move decisively towards establishing itself as a world-class, competitive and profitable global automotive company. The NRP is at the heart of Nissan’s success story.