Rebuilding Nokia: Shifting to an Innovative Culture to Gain Market

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 Abstract

This report presents a detailed change management plan aimed at transforming Nokia into a

leader in technological innovation and market success. By employing the Choice

Management-Change Management model and various frameworks, this project investigates

Nokia's current state, identifies critical change drivers, and proposes a strategic approach to

fostering an innovative culture. Key aspects covered include the PESTEL analysis, SWOT

analysis, the Deming/PDCA Cycle, Force Field Analysis, and the SMART framework for

goal setting. The report also explores the roles of teams, the vision-building process, and

practical steps for implementation and evaluation. Through this structured approach, Nokia

can effectively navigate the complexities of change, enhance its competitive position, and

achieve long-term success.

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 Table of Contents

Abstract...............................................................................................................................2

1. Introduction............................................................................................................................4

2. Refined Topic.........................................................................................................................4

3. Description of Examination...................................................................................................4

4. Nokia's Status Before the Fall................................................................................................5

5. Reasons for Nokia's Fall.........................................................................................................6

6. Project Plan............................................................................................................................7

6.1. Current Situation Analysis...............................................................................................7

6.2. SWOT Analysis...............................................................................................................8

7. Varieties of Change................................................................................................................8

8. Criticisms of Contingency......................................................................................................9

9. A Framework for Change.......................................................................................................9

10. The Choice Management–Change Management Model....................................................10

8.1. Integration of Processes.............................................................................................10

11. The Choice and Change Processes.....................................................................................10

The Choice Process...........................................................................................................10

The Change Process..........................................................................................................10

12. Constructing a Vision.........................................................................................................11

13. The Change Process...........................................................................................................11

13.1. Key Elements...............................................................................................................11

14. Belbin’s Nine Team Roles..................................................................................................12

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15. The SMART Framework for Goal Setting.........................................................................12

16. Beckhard and Harris’s Approach to Planning....................................................................13

17. The Deming/PDCA Cycle..................................................................................................13

18. Force Field Analysis...........................................................................................................14

19. Trajectory of Change..........................................................................................................14

20. Evaluation and Feedback Mechanisms..............................................................................16

Conclusion................................................................................................................................18

References................................................................................................................................18

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1. Introduction

The once mobile technology leader, Nokia, has had tremendous difficulty in keeping up its

position in the market. This report aims to present a strategic change management plan that

will reshape the organizational culture at Nokia into an innovative structure and towards

market leadership. Using insights from the Choice Management-Change Management model

and other supporting models, we shall analyze the steps needed to revamp the reputation of

Nokia as a sustainable growth leader.

2. Refined Topic

The refined topic of our report is: "Rebuilding Nokia: Shifting to an Innovative Culture to

Regain Market Leadership". It shows how Nokia rebuilt its organizational culture towards

innovation, flexibility, and market sensitivity.

3. Description of Examination

We try to assess the following aspects of change management at Nokia:

• Current Cultural Assessment

o An understanding of the present culture at Nokia, what areas might resist, and

what strengths can be built on.

• Change Drivers

o Identifying the internal and external drivers of change which may include

market trends, technological developments, and competitive pressure.

• Change Framework

o By using the PESTEL framework to analyze the environment of Nokia Based

on their analysis recommendations of their use in strategy.

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 • Change Strategy

o Design a plan with SMART-specific, measurable, achievable, relevant, and

timely objectives that should take the change process forward.

• Implementation Plan

o Outlining steps to engage stakeholders, communicate changes, and integrate

new values and practices.

• Evaluation and Feedback

o Establishing metrics of success and mechanisms for ongoing feedback and

adaptation.

4. Nokia's Status Before the Fall

1. Market Dominance:

o In the year 2000s, Nokia was the leading manufacturer of mobile phones

worldwide, holding a significant percentage share.

o The brand was associated with mobile phones, and its name was synonymous

with robust and reliable handsets.

2. Innovative Leadership:

o Pioneered mobile phone technology, including the development of GSM

(Global System for Mobile Communications).

o Strong research and development capabilities, leading to innovative products

like the Nokia 3310.

3. Global Presence:

o Extensive global distribution network and strong brand recognition across

various markets.

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 o Dominated in both developed and emerging markets with a wide range of

products.

4. Financial Strength:

o Robust financial performance with high profitability and strong market

capitalization.

o Significant investments in marketing and product development, reinforcing

market leadership.

5. Technological Prowess:

o Leading position in mobile hardware technology and design.

o Early adoption and promotion of new mobile standards and protocols.

5. Reasons for Nokia's Fall

1. Failure to Adapt to Market Changes:

o Nokia was slow to transition from feature phones to smartphones.

o The company underestimated the significance of software and user experience,

particularly with the rise of iOS and Android.

2. Strategic Missteps:

o Delayed adoption of touchscreen technology and inadequate app ecosystem.

o Poor strategic alliances and reliance on the Symbian OS, which lagged behind

competitors.

3. Internal Issues:

o Bureaucratic structure and resistance to change within the organization.

o Lack of innovation culture and slow decision-making processes.

4. Competitive Pressures:

o Intense competition from Apple, Samsung, and emerging Chinese brands.

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 o Inability to compete on price and features with rapidly innovating competitors.

5. Leadership Challenges:

o Leadership instability and strategic misalignments.

o Inconsistent vision and failure to anticipate market trends.

By understanding both the reasons behind Nokia's fall and its status before this period, a

comprehensive change management plan can be developed to rebuild and transform the

company for future success.

6. Project Plan

6.1. Current Situation Analysis

Utilizing the PESTEL Framework:

 Political Factors:

o Government policies, trade regulations, and political stability affecting global

operations.

 Economic Factors:

o Economic growth, currency fluctuations, and market conditions impacting

sales and profitability.

 Social Factors:

o Changing consumer preferences and demographic trends influencing market

demand.

 Technological Factors:

o Rapid technological advancements and innovation cycles driving the need for

continuous product development.

 Environmental Factors:

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 o Sustainability and environmental regulations shaping product design and

manufacturing processes.

 Legal Factors:

o Compliance with international laws and regulations affecting operations and

market entry.

6.2. SWOT Analysis

 Strengths:

o Industry expansion, strong patent portfolio, global presence, large workforce.

 Weaknesses:

o Traditional culture, weak strategic decisions, small market share in the mobile

industry, lack of innovation.

 Opportunities:

o Diversification into more industries, strategic partnerships, growing

telecommunication market, and sustainable technologies.

 Threats:

o Intense competition, rapid technological changes, unique customer needs, and

regulatory challenges.

7. Varieties of Change

1. Smooth Incremental Change

o Gradual and systematic adoption of innovative practices across departments.

o Emphasis on continuous improvement in product development and customer

engagement.

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 o Incremental changes in organizational processes to enhance creativity and

responsiveness.

2. Bumpy Incremental Change

o Periodic accelerations in innovation efforts due to market opportunities or

competitive pressures.

o Spurts of intensified creativity and experimentation in response to emerging

trends.

o Flexible adaptation to changes in consumer preferences and technological

advancements.

3. Discontinuous Change

o Strategic shifts in product development and market approach to regain

competitive edge.

o Major transformations in organizational structure to foster a more agile and

innovative environment.

o Punctuated efforts to introduce breakthrough innovations and disruptive

technologies.

4. Top-Down Systemic Change

o Leadership-driven initiatives to instill a culture of innovation from the

executive level.

o Comprehensive changes in policies and resource allocation to support

innovative projects.

o Alignment of strategic goals with innovation metrics to drive long-term

market success.

5. Piecemeal Initiatives

o Independent innovation projects initiated by various departments or teams.

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 o Diverse approaches to fostering creativity and entrepreneurial spirit across the

organization.

o Flexible implementation of innovative ideas based on specific market needs

and opportunities.

6. Bargaining for Change

o Collaborative efforts between management and employees to set innovation

targets.

o Negotiated agreements on resource allocation and support for innovative

endeavors.

o Incremental adjustments based on mutual agreement to achieve incremental

innovation goals.

7. Systemic Jointism

o Holistic approach integrating multiple facets of organizational change towards

innovation.

o Coordinated efforts to align culture, structure, and processes for sustainable

transformation.

o Integrated change management initiatives aimed at achieving comprehensive

organizational renewal.

8. Criticisms of Contingency

Contingency approaches to change are criticized for:

 Ignoring environmental manipulation.

 Overlooking managerial choice.

 Underestimating the difficulty of changing structures, cultures, and behaviors.

 Assuming that survival depends on being the best in the environment.

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9. A Framework for Change

The framework for change involves:

 Understanding the Context: Analyzing internal and external environments using the

PESTEL framework.

 Assessing Readiness: Evaluating the organization's readiness for change.

 Developing a Vision: Constructing a clear vision to guide the change process.

 Planning the Change: Utilizing models such as Beckhard and Harris’s approach to

activity and commitment planning.

 Implementing the Change: Applying the Deming/PDCA Cycle for continuous

improvement.

 Evaluating and Sustaining Change: Using Force Field Analysis to understand

driving and restraining forces.

10. The Choice Management–Change Management Model

8.1. Integration of Processes

The Choice Management-Change Management model integrates decision-making and change

processes:

 Choice Process: Making strategic decisions that align with the vision and goals.

 Change Process: Implementing those decisions through structured change

management practices.

11. The Choice and Change Processes

The Choice Process

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  Strategic decision-making aligned with vision and goals.

 Evaluation of options and selection of the best course of action.

The Change Process

 Unfreezing: Creating awareness and preparing the organization for change.

 Moving: Implementing new values, behaviors, and practices.

 Refreezing: Stabilizing the new culture and ensuring sustainability.

12. Constructing a Vision

A clear vision for Nokia involves:

 Emphasizing innovation and market leadership.

 Promoting a culture of agility and responsiveness.

 Aligning strategic goals with market demands and technological advancements.

13. The Change Process

13.1. Key Elements

1. The Trigger:

o Identify the need for change through market and organizational analysis.

o Recognize shifts in technology, consumer behavior, and competitive landscape

that necessitate change.

2. The Remit:

o Define the scope and objectives of the change initiative.

o Ensure clarity on what the change aims to achieve and its expected impact on

the organization.

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 3. The Assessment Team:

o Form a team with diverse expertise to evaluate the current state and readiness

for change.

o Include representatives from different departments to gain comprehensive

insights.

4. The Assessment Process:

o Conduct thorough assessments using tools like PESTEL and SWOT analysis.

o Gather data on organizational strengths, weaknesses, opportunities, and threats

to inform the change strategy.

14. Belbin’s Nine Team Roles

Forming effective teams involves understanding Belbin’s nine team roles:

 Plant: Creative innovator who generates ideas.

 Resource Investigator: Explores opportunities and contacts.

 Co-ordinator: Clarifies goals and delegates tasks.

 Shaper: Drives progress and overcome obstacles.

 Monitor Evaluator: Provides critical analysis.

 Teamworker: Promotes team cohesion.

 Implementer: Turns ideas into practical actions.

 Completer Finisher: Ensures thorough, timely completion.

 Specialist: Provides in-depth knowledge of key areas.

15. The SMART Framework for Goal Setting

Setting goals using the SMART framework:

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  Specific: Clearly defined objectives.

 Measurable: Quantifiable indicators of success.

 Achievable: Realistic and attainable targets.

 Relevant: Aligned with overall vision and strategy.

 Timely: Specific timelines for achievement.

16. Beckhard and Harris’s Approach to Planning

Activity Planning involves:

 Identifying necessary activities for achieving objectives.

 Sequencing activities in a logical order.

Commitment Planning involves:

 Ensure stakeholder buy-in and support for the change initiatives.

 Address concerns and resistance to change through effective communication and

engagement strategies.

17. The Deming/PDCA Cycle

The Deming/PDCA (Plan-Do-Check-Act) Cycle for continuous improvement:

 Plan:

 Develop a detailed plan for implementing change.

 Define objectives, resources, timelines, and responsibilities.

 Do:

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  Execute the plan on a small scale to test its feasibility.

 Implement changes and collect initial feedback.

 Check:

 Monitor outcomes and gather data to evaluate the effectiveness of the change.

 Identify any deviations from the plan and areas for improvement.

 Act:

 Adjust the plan based on feedback and evaluation results.

 Expand implementation, incorporating improvements for broader application.

18. Force Field Analysis

Force Field Analysis for understanding driving and restraining forces:

 Driving Forces: Factors that support and push for change, such as technological

advancements, market opportunities, and stakeholder support.

 Restraining Forces: Factors that resist and hinder change, including organizational

inertia, resistance from employees, and resource constraints.

 Balancing Forces: Strategies to strengthen driving forces and reduce resistance, such as

effective communication, training, and incentivizing change adoption.

19. Trajectory of Change

1. Current State Assessment

o Analyze Nokia's current position in the market.

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 o Identify existing challenges and shortcomings.

o Evaluate the company's historical strengths and weaknesses.

2. Recognition of Need for Change

o Acknowledge the necessity of shifting to an innovative culture.

o Highlight past failures or missed opportunities due to lack of innovation.

o Compare Nokia's market position with competitors and industry trends.

3. Vision for Innovation

o Define what an innovative culture means for Nokia.

o Establish clear goals and objectives for fostering innovation.

o Outline the desired market success metrics (e.g., market share growth,

profitability, customer satisfaction).

4. Strategic Planning

o Develop a comprehensive strategy for cultural transformation.

o Incorporate elements such as leadership commitment, resource allocation, and

organizational structure changes.

o Consider partnerships or collaborations to enhance innovation capabilities.

5. Implementation

o Roll out initiatives to promote innovation throughout the organization.

o Conduct training programs and workshops on creative thinking and risk-

taking.

o Introduce agile methodologies or other frameworks to encourage

experimentation and rapid prototyping.

6. Monitoring and Adaptation

o Implement mechanisms to track progress and performance.

o Solicit feedback from employees, customers, and stakeholders.

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 o Adjust strategies based on feedback and changing market dynamics.

7. Achievement of Market Success

o Measure the impact of cultural changes on market success indicators.

o Celebrate milestones and achievements in innovation.

o Showcase success stories to inspire further innovation and maintain

momentum.

8. Sustainability and Continuous Improvement

o Embed innovation as a core value within Nokia's corporate culture.

o Foster a climate where continuous improvement and adaptation are

encouraged.

o Anticipate future challenges and trends to stay ahead in the market.

This Trajectory of Change provides a structured approach for Nokia to rebuild and thrive by

embracing an innovative culture, thereby gaining market success.

20. Evaluation and Feedback Mechanisms

Metrics:

 Performance Indicators

o Financial Metrics: Revenue growth, profit margins, return on investment

(ROI), and cost savings.

o Market Metrics: Market share, customer acquisition rates, and brand

recognition.

o Operational Metrics: Efficiency improvements, production quality, and time-

to-market for new products.

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 o Innovation Metrics: Number of new patents, R&D spending, and innovation

pipeline strength.

o Employee Metrics: Employee engagement, turnover rates, and training

completion rates.

Evaluation Frameworks:

 Balanced Scorecard: Measures performance across financial, customer, internal

processes, and learning and growth perspectives.

 KPIs (Key Performance Indicators): Specific metrics aligned with strategic goals.

Feedback Loops:

Regular Feedback Mechanisms:

 Surveys and Questionnaires: Regularly distributed to employees, customers, and

stakeholders to gather insights on satisfaction and areas for improvement.

 Focus Groups: Conducted with key stakeholders to discuss progress, challenges, and

suggestions.

 Performance Reviews: Periodic reviews of employee performance and progress

towards goals.

 Dashboards and Reports: Real-time data visualization tools for monitoring key

metrics and trends.

 Continuous Improvement Meetings: Regularly scheduled meetings to review

feedback, discuss progress, and make necessary adjustments.

Adapting Strategies:

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  Agile Methodologies: Using iterative approaches to adjust strategies based on

feedback and changing conditions.

 Lessons Learned Sessions: Post-implementation reviews to capture insights and

apply them to future initiatives.

 Benchmarking: Comparing performance against industry standards and best

practices to identify areas for improvement.

By implementing these detailed evaluation and feedback mechanisms, Nokia can ensure that

the change initiatives are effectively monitored, refined, and sustained over time.

Conclusion

By adopting a structured approach to change management, Nokia can transform its

organizational culture, embrace innovation, and regain its competitive edge in the global

market. The outlined plan provides a clear path forward, ensuring sustainable growth and

market success.

References

Cameron, E., & Green, M. (2019). Making Sense of Change Management: A Complete

Guide to the Models, Tools and Techniques of Organizational Change (5th ed.).

London: Kogan Page.

Kotter, J. P. (2014). Accelerate: Building Strategic Agility for a Faster-Moving World.

Boston, MA: Harvard Business Review Press.

Hayes, J. (2018). The Theory and Practice of Change Management (5th ed.). London:

Palgrave Macmillan.

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Anderson, D., & Anderson, L. A. (2016). Beyond Change Management: How to Achieve

Breakthrough Results Through Conscious Change Leadership (2nd ed.). San

Francisco, CA: Pfeiffer.

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