Nokia Corporation

The need for effective leadership in any organization across the globe cannot be underrated. This paper will evaluate ways in which Nokia can incorporate action-learning groups, while promoting them as a standalone practice and to initiate more systematic evaluation on the impact of action learning projects. To achieve this, it is essential for management of the organization to identify the adaptive changes such as political, economic and ecological, social and technological changes. Nokia is driving the transformation and growth as the world leader in the area of Internet and communications. To overcome uncertainties, the organization has created robust spreadsheet planning procedures along with joint goals.

Force field analysis will be carried. This is because there is the need for management and employees to minimize the resistance by becoming effective agents of change in Nokia. In this project, the main audience includes management, employees and communities in which the company operates. In order to manage employees at Nokia, an immunity map will be developed, in order to establish goals and objectives for management purposes. Despite the heavy financial implication, the proposed model of immunity map will help to manage the process of leadership change which is related to environmental challenges. One of the risk factors involved in this project is the failure of employees to accept the implementation of change, as well as the financial risk bearing in mind that in the FY 2011, the company made a loss of € -1.164 billion.

Nokia Corporation

Introduction

The need for effective leadership in any organization across the globe cannot be underrated. As a result of increased competition between firms operating in the same field, the main differentiating factor between the successful and not successful is brought about by ways in which management organizes its business. One of the crucial aspects is ways in which employees are organized, in order to ensure the maximum production. One of the successful businesses, which have ensured this, is Nokia Corporation.

Problem Statement

This paper will evaluate ways in which Nokia canincorporate action-learning groups, while promoting them as a standalone practice and to initiate more systematic evaluation on the impact of action learning projects.

Internal and External Factors affecting the Change

To achieve this, it is essential for management of the organization to identify adaptive changes (Heifetz., Grashow, & Linsky, 2009, pp. 79-85). The most obvious challenge for Nokia is to ensure the balance between the action and reflection within an action oriented organizational culture. Another challenge for the organization is to assess the growth and maintenance of community of internal practitioners, as well as to understand the effectiveness of action learning (Mahmud, 2009, pp. 1-14).

Impact of Existing Structures and Systems on the Change

a) Use of Structures and Systems by Nokia

Nokia has been found with the use of matrix structure, because it operates its businesses in multiple countries and units. In order to overcome uncertainties, the organization has created robust spreadsheet planning procedures along with joint goals. Moreover, the collaborating teams create plans for such purposes and management defines roles and responsibilities due to which people are held accountable. The organization implemented the effective distribution system for the consumer relationship and business procedure (Gregory, 2010, pp. 52-54).

b) Influence of Existing Structures and Systems

The influence of existing structures and systems on adaptive challenges of Nokia were quite apparent, because projects of action learning was challenging and time consuming, but they were also educative. The involvement of management board members in the action learning was one of main factors from the nomination of participants to select strategic project topics along with sharing of their personal leadership stories at the program. Results regarding the adaptive change were affected due to existing systems and structures in Nokia, because it was necessary for management to identify adaptive changes (Ropponen, 2008, p. 162).

Using Existing Structures and Systems to Promote the Change

a) Promotion of Change using Existing Structures and Systems

The effective use of formal communication channels, performance management and reward systems can play useful roles in gaining acceptance and commitment from employees and management of Nokia. The clarity of purpose and dimension along with the involvement of employees can be used to advance the involvement of employees in initiatives related to the change. It can be said that structures and systems existing in Nokia can also be the part of effective promotion of change, because there can be a low probability of employees and management to resist change initiatives (Cawsey & Deszca, 2008, pp. 170-171).

b) Role of Incremental Strategies in Existing Structures and Systems

The adaptive change for Nokia requires long-term strategies for incremental development and it implies that decision build upon another one is molding past decisions into the future strategy. Managers of Nokia are not completely aware that it is not possible to know about all influences that affect the future of the organization. In order to overcome such issues, management of the organization developed strategies for testing new ideas and experiments (Masalin, 2003, pp. 68-72).

c) Role of Revolutionary Strategies in Existing Structures and Systems

Revolutionary strategies within Nokia were used to overcome the organizational stiffness, because it is crucial for the organization to implement such approach within a short span available for the large chain. The reason for the implementation of revolutionary strategy by management of Nokia can be the competitive pressure (Wit & Meyer, 2010, pp. 82-85).

Force Field Analysis

It has been observed that the resistance to change can never stop, but management and employees of the organization can learn to identify and minimize the resistance for becoming effective change agents. For this purpose, the force field analysis suggests that there are certain forces present in the situation with different types of resistance to change (Daft & Marcic, 2010, pp. 277-278). In order to initiate the change within Nokia, it is necessary to understand that there are different pressures for the change in situation that acts in opposite direction to existing forces.  The three actions can be taken by the Nokia to modify the equilibrium position of forces, 1) increase in strength of pressure for change, 2) minimizing the strength of resisting forces present in the situation, 3) changing the dimension of force by implementing different strategies. Alternatively, it can be said that the force field analysis can assist in understanding the process of change within the Nokia (Andersen & Fagerhaug, 2006, pp. 164-166).

Management of the considered organization is required to analyze situation by enabling individuals to understand better relevant aspects of the situation. It is found that the force field analysis enables the organization to highlight factors that can be changed and that cannot be changed to overcome certain challenges. It can be said that the force field analysis helps the change agents of Nokia to plot the main structural, systemic and human forces at work within the situation and to predict strategies for modifying forces (Barkley & Saylor, 2001, pp. 395-396).

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Organizational Analysis

Nokia began its business as the manufacturer of equipments and supplies. Nokia is driving the transformation and growth as the world leader in the area of Internet and communications.  The organization makes a wide range of mobile devices with services and software that enables people to experience music, navigation, imaging and television (Ropponen, 2008, p. 161). It has been realized by the organization that the growth in organization would mean a massive demand for capable leaders within the organization for managing and developing their business areas in the near future. For this purpose, a cross-functional program was established for leadership, managerial competence and skills of implementing the organizational strategy (Mitchell, 2009, pp. 46-70). The program is known as “Compass”, which consisted of four modules: 1) strategy and team building, 2) consumer relationship and business process, 3) leadership and change management 4) operational excellence and quality (Ben-Aaron, Campbell, & Mustoe, 2010, pp. 34-36). Changes related to adaptive challenges identified are occurring within priorities and responsibilities of employees of the organization (Mahmud, 2009, pp. 1-14).

Changes required for the organization include the planning of incorporating action-learning groups and initiating systematic evaluation on the impact of action learning projects. Adaptive challenges for the implementation and enforcement of changes faced by the Nokia include identification of areas where the change is needed by management of the organization (Cawsey & Deszca, 2008, p. 170). Moreover, such type of change is required for collaborating teams to create plans, because it is necessary to define roles and responsibilities for the people to hold them responsible. It has been found that the organization is ready for the change, due to its higher score in the assessment of readiness for the change. Structures and systems of Nokia are enablers of change, because they can be effective in overcoming adaptive challenges during their implementation (Wit & Meyer, 2010, p. 83).

In order to initiate the change within Nokia, it is necessary to understand that there are different pressures for the change in situation that acts in an opposite direction of existing forces.  Three actions can be taken by the Nokia to modify the equilibrium position of forces: 1) increase in the strength of pressure for change, 2) minimizing the strength of resisting forces present in the situation, 3) changing the dimension of force by implementing different strategies. Alternatively, it can be said that the force field analysis can assist in understanding the process of change within Nokia (Andersen & Fagerhaug, 2006, pp. 164-166).

PEST Analysis on Nokia Corporation

a) Political Factors

It is crucial for the Nokia to acquire resources from the government, which significantly include economic, scientific and technological policies (Henry, 2008, pp. 52-53). It can be depicted that the political environment for Nokia is usually considered as the one that is enforced by the government within the nation, in which it is operating its businesses. Furthermore, the organization has been operating at the global level while abiding to ground rules and regulations in different markets of host countries all around the globe (Grant, 2005, p. 58).    

b) Economic and Ecological Factors

The economy and environment provide the information about the production and consumption of goods and services for the organization. In case of Nokia, the economic and ecological system is critical, because it can control the production of organization, while considering questions related to what to produce, how to produce and for whom to produce (Bowhill, 2008, pp. 331-335).  Moreover, the knowledge about the economic status of the nation including areas of type of economic system practiced, inflation rate, level of employment and exchange rate, are found to be vital for the organization (Gimbert, 2011, pp. 47-49).

c) Social Factors

Social factors focus on ways implemented by the Nokia to blend in with elements of the society, which specifically include culture, social class, lifestyle and psychological factors. Nokia operates within a diverse culture and at every level of social class, because every model released by the organization satisfies needs of people, despite their differences in race, nationality, religion and beliefs (Hedin, Hirvensalo, & Vaarnas, 2011, pp. 151-152).

d) Technological Factors

The change in technology defines rapid technological advancements and being a predominated medium, technology defines the way in which people contact and communicate with each other. It has shaped the culture and changed other aspects within and outside the organization, due to which it is obvious that the success of the Nokia is based on consistent innovation on human technology (Thompson & Martin, 2010, pp. 86-89). 

Ethical Principles and the Organizational and Societal Implications

Firstly, it is a crucial noting that in this project the main audience includes management, which runs the company as seen in the diagram below.

Stakeholders include employees, shareholders, as well as the community in which the company operates. Ethically, management is required to analyze situation by enabling individuals to understand better and relevant aspects of the situation. It is found that the force field analysis enables the organization to highlight factors that can be changed and that cannot be changed to overcome certain challenges. It can be said that the force field analysis helps change agents of Nokia to plot the main structural, systemic and human forces at work within the situation and to predict strategies for modifying forces (Barkley & Saylor, 2001, pp. 395-396).

Proposed Solution to the Leadership Change

The personal challenge related to the leadership change is to communicate strategic plans to the organization. These strategic plans are developed during the observation of environmental challenges being faced by the organization. In order to manage employees at Nokia, an immunity map has been developed, in order to establish goals and objectives for management purposes.  Lahey and Kegan have discovered that shifting behaviors, as a matter of fact, firstly requires instilling a more constructive and conscious set of beliefs through the four-column “immunity map” that guides people in the process of self-examination, hence helping them to adjust and identify assumptions that may hold them back (Kegan & Lahey, 2009, pp. 276) .

 The self-weakness learned from the immunity map includes the weak and insufficient explanation of strategic plans provided to employees in the organization (Bunker, Hall, & Kram, 2010). Immunity map will help to observe the external and internal environment while overcoming self-weaknesses. Moreover, the process below can be used effectively by sharing it with management of the organization and employees after initial phases.

Data collected during the test provided several aspects to bring change in   leadership, which include the acceptance of employees for the feedback of performance and communication of strategies. It can also be said that environmental challenges can be overcome by assigning changing responsibilities on employees and engaging them in different projects of active learning. It can be interpreted from the test of big assumption that the assumption is valid because employees are found interested in their involvement in changing strategies. Another set of assumptions in this context can also be tested, because the change can only be possible due to the effective leadership and employees’ involvement in every task. The efficient performance of employees with effective hold on environmental challenges causes the assumption to be inaccurate. It can be believed that the horizon of assumptions and observations should be widened to assess the situation.  Increasing challenges in external and internal environment due to which the competitive position of organization was under threat and the need of change in leadership arises.

Reflection of Immunity Map and Financial Implications

The process of changes in an organization is constant. Despite the heavy financial implication, the proposed model of immunity map will help to manage the process of leadership change which is related to environmental challenges. As at July 2012, Nokia had more than 122,148 employees. Corporate culture and values of organization are important elements, which may both serve as obstacles and facilitators of leadership change processes. The key issue in this case is proper management of these elements. Research study results and data collected have demonstrated a strong need in communicating change factors to members of the corporate culture, i.e. employees of the organization. Leaders should not only see gaps revealing the direction of strategic goals, but also see potential problems which may arise, if leadership change processes are not properly communicated and explained at every level of an organization.

Seeing these problems will help leaders to plan and implement the change slowly and effectively. The motivation of employees should not be affected by change processes within the organization. This means that processes mentioned in the immunity map should not be neglected when introduced at one level and waiting for another level to follow. Communication strategy in terms of environmental challenges should be planned in such a way that levels of organization obtain information from top to bottom, not otherwise. When priorities are divided, it is much easier to distinguish which type of department requires the leadership change, and where leadership change may become a main challenge for implementation. However, focusing only on setting priorities and looking at peculiarities of each department within the organization is not the best strategy in this case. The leadership should also look at their primary strategic goals and see whether they are fulfilled, being based on priorities which have been made. It is estimated that the implementation of this project may cost the company more than $1.0 billion in next five years. These recommendations help in planning the leadership change in any organization. Big corporations, as well as small companies can benefit from the immunity map which helps to distinguish potential problems of the company based on its market position and the overall corporate culture and value chain. Immunity map is helpful for individuals as leaders and individuals as processors of leadership change are based on environmental challenges in an organization. Feedback necessity and advanced communication strategies based on  priorities of all organizational levels are essential elements of the whole process of leadership change in the organization.

Risk Factors and Implementation Timeline

One of the risk factors involved in this project is the failure of employees to accept the implementation of change. This is owing to the fact that there is the general fear of losing employment, or being deployed to other sectors of the company. The other risk factor is the high cost involved. Bearing in mind that profitability levels of Nokia has been on decrease in recent times (for instance, in the FY 2011, the company made a loss of € -1.164 billion), there is the need to ensure that financial risk factor, which may be involved is well thought of (Nokia Corporation, 2012). The implementation timeline will be in five times indicated in the table below.

Conclusion

The need to organize employees in given action learning groups for maximum production in an organization cannot be ignored. For Nokia to remain competitive both in the short and long-run, action learning groups are crucial, as they help in cutting costs, as well as improving the efficiency of employees. However, there is the need to carry out the force field analysis so that employees and management significantly understand what is entailed in the change, thus, minimizing any possible misinterpretation.