HR Assignment help online:: Leadership/Nokia , Elop’s and competition
Question??
Human Resource leadership :: Nokia And Elop’s Leadership & realizing competition??
Solution the frame is::
Leadership in organizations and corporations has been all about trying to bring about a change in difficult condition. It’s all about the captain coming to the helm of affairs when the ship is all set to sink. Looking at the annals of corporate history we have had amazing leaders who have fought their way out of disasters with passion and purpose. The fervor with which they have approached disasters and have emerged successful has formed the basis of many successful case studies across business schools. These leaders have formed the rich content of information and strategies that have formed the very basis of literature that has been written about leadership. Looking into recent history we find the steps taken by the leadership team of Nokia to be interesting and though provoking. The challenges faced by Nokia and the leadership decisions taken by the organization forms a fit business case to be studied. Nokia as we all know has been a global brand and a market leader in its category. A firm that has been rich in heritage. However, the company is now in a situation where is battling for survival for a host of external and internal reasons
Nokia ,the Finnish conglomerate became the world’s leading phone company in the 1990’s.Thus,it has already experience the changes management shock. However, Nokia made a strategic error of not venturing into the market of smart phones ,which right now is exploding. Thus, it was a global leader in mobile phone ,but not in smart phone. Thus although its business has been very profitable ,it has revenues are under tremendous pressure to grow. In order to bring about the new impetus necessary to bring about the strategic change ,the company appointed Stephen Elop as the new CEO of the organization in September 2010.The move as all are hopeful was to take gutsy decisions to drive the company from the mayhem that the organization was facing
On February 2011, Elop issued the famous burning platform memo. The memo was hard hitting and was able to drive home the point about the crisis facing the organization. Elop said the present state of the company was akin to a burning platform on a ship .The only way out of the crisis Elop said was to something very crazy to move out of the deck.
In principle to move out of the disastrous position Elop outlined a system of strategic initiatives that the company had decided to undertake to emerge out of the situation. One of the major changes that the memo outlined was to partner with Microsoft in the category of smart phones. This would mean the smart phones software’s were to develop on Windows platform, and thus the company had to do away with its long invested and dear Simian Platform. A major strategic change as far as Nokia is concerned. This was also followed by strong initiative to usher in a process of delivering in the organization structure to make it leaner and ambitious. This also brought about a progressive system of de-centralization in the organization where more responsibility and decision making has been entrusted to local and national teams. This would make sure that the organization is quick enough to spot opportunities and immediately act upon it.
The memo also enlisted step taken to make the organization more transparent. This was also reinforced by a strong focus on leadership and innovation in the markets. Elop said in the memo that one of the biggest failures at Nokia has been that of leadership. It failed to sense big trends, and a result it has been relegated into a situation where they are years behind competition. Their entire markets have been snatched away from them, by a change in eco-system that they have failed to realize.
Looking at the hindsight we find that Nokia had been made redundant by a bureaucratic excess that led a product driven strategy than a customer driven strategy. There has been a serious lack of entrepreneurial spirit where growth and innovation has been bogged down by delays in decision making
Interestingly if we look at Elop’s leadership we find certain important traits that are worth emulating:
I) Initiative: On the first day of assuming office he sent a mail to all his employees asking three basic questions that the organization should do
ii) Ability to accept change: The idea to move to the Microsoft Platform has a huge change from its earlier focused Simian Platform.
iii) Corporate Planning: Delayering of organizational structure with a focus on empowered delegation to improve decision making. This entails an entire change in the organizational culture.
iv) Realizing Competition: The acceptance of having lost the race to Apple as well as cheap manufacturers of mobile phones from China clearly shows that Elop is ready to accept mistakes and thus make amends to them.
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