OUR WAY The Nissan Way of Doing Business One thing about Nissan is very clear: this is a company that sets its own distinctive course, and that course defines the modern automotive company. Our philosophy comes from within, and its principles are based not on tradition but on our own knowledge and experience, drawing on the powerful flow of information that runs through divisions, business areas and the Alliance with Renault.  At the core of our philosophy is the Nissan Management Way. As one senior executive remarked, “This is  our way, a commonsense way that anyone in the company can take as their own.” The guiding principle here is both flexible and simple: inspire effective performance. To create value for customers, for example, employees must be customer-focused. To produce the necessary shift in thinking, we must have management of the highest caliber. The actions and comments of the senior executives appearing in this annual report reflect that strength of leadership. You will see it in the way they convey their individual visions, commit to action plans, manage with accountability, assess progress, and recognize high performance. The same management practices are deeply embedded at every level of the company. The first key concept in the Nissan Management Way is cross-functionality. Cross-functional teams—CFTs—and the V-Up program are powerful management tools, developed within Nissan, that reach across the functions and organizations of this global company. When employees are brought together across corporate and physical borders to form a CFT, what we call “healthy conflict” often arises. Healthy conflict is cooperative, not combative, and sparks innovative ways of thinking. Again, it all springs from looking at challenges in a customer-centric way. After all, no single division can produce what customers want—an outstanding automobile backed by excellent service and support. Cross-functional activities are at the core of all operations within Nissan, making the process more active and direct. Another key concept at Nissan is “stretch.” Stretch occurs when an activity spans the entire company and draws on a variety of viewpoints aimed at meeting customer expectations. Combining diverse backgrounds and ways of thinking creates solutions that stretch the organization in new directions. Since the first days of the Nissan Revival Plan, everything we do at Nissan is based on commitments. People must commit themselves to achieving goals. Some goals are internal, while others are of importance to a wider association of employees, shareholders, suppliers, customers and others. Setting a goal and developing the process to achieve it go beyond simply meeting a target, however. These actions are meant to develop confidence and the desire to reach still higher levels of performance. Nissan Annual Report 2004 18 WHO WE ARE