Nokia Change Management
1.) How company failed to adopt and implement changes.
The change management usually motivates people to work together and with new ideas to change their present techniques for their better future. However, Nokia company was not able to engage with the staff members to involve them in the process of transition. Also, the company leaders were overconfident about their success and did not wanted to update their mobile gadgets with new hardware as they thought it could catch up with the superior quality phones.
As soon as they realize the importance of android and iPhone, they tried to deal with Microsoft which was another drawback as it was too late to start. Nokia managers were more concerned about the business short term success rather than implementing new changes for long term success. There was a lack of visible responsibility and ineffective decision making. Furthermore, the right people were not involved in the decisions and most of the decisions were taken arrogantly because of the authoritarian Leadership style.
2.) How failure could have been avoided by the company
Nokia could have easily avoided the failure if the would have implemented some change managements in their system. if the company would have estimated the importance of new hardware and software technologies it would have picked up the race of competition. Nokia should have anticipated in the market before they were forced to as for their better future. They should have sacrificed their business profits and cash cows for their long term and future benefits. The organizational fear should have been removed so people from inside would come up with the new plans and help in implementing those strategies permanently.
Nokia should have adopted the OS system at the early stages. also, if some changes are made, they should be executed properly without any fear of losing the job. Decisions should have been made rationally for the company’s profit keeping aside their personal benefits. Further if the company had coped up with the new hardware techniques it would have emerged still the largest company in the world
3.) Association between successful planned change initiatives and the potential success factors
One of the success factors could’ve been leadership as they didn’t have a strong leadership, which could give them a long-term vision. If Nokia had more innovative ideas and had brought in more features to their mobile phones, it could’ve attracted more customers which means more sales and more profits. Employee participation and commitment is also a key success factor as employees need to understand the vision and direction of the company. Communication between all the levels of the management is very important as more innovative and valuable proposals can be shared and more communication will lead into less issues between top and lower management.
4) Lewin’s model suits the best for Nokia
Ans. This model was created by Kurt Lewin in the 1950’s and this model is still being used by many leaders due to it fruitful results. It has three stages|: unfreeze, change and refreeze. This model was used by Nokia after iPhone and Samsung came into the market. The company hired some employees and made the idea of new change to set up new software’s and techniques in the world of modernism. Some steps were taken like Nokia took a chance to go through the change procedure by progressing fruitful programming and connecting with people to get a handle on better approaches for working and adapt new qualities, perspectives and practices.
The CEO of Nokia figured out how to execute the planned change in his organization by growing new business strategies and furthermore by preparing his employees for the change and its outcomes. The CEO motivated everyone and gives them strength to try new procedures.
The subsequent stage CEO took was the refreezing working condition in the organization or ensuring all representatives will embrace this change and it will keep going for accomplishing long haul objectives of the association.
5.) Why change is important and why it should be implemented
Ans. As Nokia has faced many problems, they can be divided into two factors:
External forces: which includes new technology, competition and advanced skills
Internal forces: Nokia has people working for same background and culture since ages which made them think conservatively from others also, there was lack of new ideas in the new innovative world which lead to the failure of the company.
It was cleared that driven forces outweighed the restraining forces which implies that the change was must needed for Nokia. Also, many of the problems were unsolved due to a missing leader and for that change to implement a leader named Elop was elected .As soon as Elop was elected he showed the truth to his employees by telling them how far they are in the race of competition and how they should build new skills and trust each other’s capabilities so they can avoid any further failures. He then started the 3-change model of Lewin following the first step of unfreezing the employees by making them aware of the fact that how important it is to develop new skills and products in the changing world. he assured his employees with strong feedback and motivation.
The second step was to implement the plans for a change which he did by shifting from OS’s system to Microsoft windows and becoming partners with them. This was a big and shocking change but Elop believed that this union was an opportunity for them to work together in a team for bigger success. After this Elop decided to delayer the management so to avoid any fear between the co workers and everyone should work on same levels and come up with new ideas
The last step was refreezing which implies that the change made should be executed and followed by everyone. After this Nokia’s market shared started to recover and the team was coming up with new skills and more benefits. After some time, the organization saw great outcomes in deals and exhibitions of representatives expanded relentlessly. The purpose for such change was that all colleagues were welcome to take an interest and putting their endeavors from the principal arrange if unfreeze, change and refreezing stage with no restrictions.
Despite all the efforts the company was still out of race because they started this change process when other companies like apple and android had already ruled the new era. If Nokia would have realized their problem earlier; they could have faced them radically. In the nutshell, if the company is going for a change they should have been prepared before and the plan should be incorporated by everyone in the company for its positive outcomes.