Mitsubishi 2002 Annual Report Download - page 6

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4
What is the nature of the various changes that have happened internally at
MMC during the initial phase of the Turnaround ?
ANSWER
The main change has been in the culture. The keywords are transparency, accountability, and performance.
These words govern not only internal relations, but also our relationships outside the company. We are
establishing an open and honest dialogue. We have been upfront about our past failures and the things we
are doing to make sure we never have problems with quality-related issues again. Now, we take responsibil-
ity for making things right. We are determined to respond, clarify, and take full responsibility for all results,
serving as a model for other companies.
MMC today is developing a more open atmosphere. In the past, the company tended to behave more as
a closed shop. I think I have helped to open it up, which is of benefit to everybody—employees, customers
and shareholders alike. In the past, our culture allowed people to make excuses and sometimes compro-
mises, and in the end this created bad results. Now we have a clear turnaround process and open commu-
nication. We analyze past data and then define a performance goal. We fulfill our responsibility to achieve
that goal. Everything is about commitment. I am not willing to make compromises when it comes to perfor-
mance. We have formulated a clear plan with realistic targets, and it is achievable.
We used to be reactive, but now we are proactive. The problem was that this reactivity led to MMC simply
trying to follow the market, which in turn induced a discount mentality that negatively impacted the brand
image. Now we have escaped from this vicious circle. Now we have a market-driven approach that pre-
serves all the positive points of our top-class engineering expertise without compromising on quality. This is
a real change for our company, a change of spirit and a change of attitude.
QUESTION
4
SPECIAL FEATURE—MANAGEMENT TALKS
Interview
Rolf Eckrodt President & CEO