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Strategic Change (Nokia)

Introduction to Strategic Change at Nokia
Strategic change in any of the business occurs when the organization moves from one state to another
and there are numerous reasons for its happenings. Strategic change has variety of options from
incremental to radical, although it is mainly implemented due to changes in the corporate strategy. There
are several reasons due to which a firm might take a decision to transform its business strategy, it may
be the outcome of internal pressures for instance the need to maximize profit and maintain stability in the
business. The other reason could be of external pressure that extensively occurs due t changes in the
global economy. So, the need for changes arise both from internal and external factors and these are
often required to sustain a continuous competitive advantage (Caluwé and Vermaak, 2003).

Changes in the business strategy are generally attained through the utilization of strategic planning
process and it begins with the development of a mission statement that freezes the vision of leader
where do they want to see their organization in the future years. Organizational leaders will set precise
and attainable goals that must be assembled to further move in appropriate direction in the business.
Finally the organizational leaders will develop the business strategies intended to align the day-to-day
working activities of the firm and meet the organizational goals. Strategic changes are devised mainly
because of the intrinsic fluctuations in the environment of business currently; firms require themselves
facing the requirement to change their method of operation (Harrison and Pratt, 1992).

Understand the background to organizational strategic change

Organizations can opt for strategic change either due to internal factors that includes circumstances
where the firm is growing beyond its leaps and needs to alter the ineffective structure or perhaps due to
deprived overall performance. Other environmental factors includes the demography of the changing
workplace and modifications in the available technologies of business. Strategic changes means
changing the vision, mission, aims and objectives of the adopted strategy to achieve desired objectives.
According to (Hofer and Schendel 1978): It is defined as changes in the content of a organizations
strategy as explained by its scope, resource deployments, synergy and competitive advantages.

Models of Strategic Change

There are various models for strategic change that Nokia could adopt to implement an appropriate
process for change in the business. Nokia is multinational corporations of Finland, the main principle
elements of Nokia are mobile phones and other portable IT equipments. Nokia is one of the biggest
corporations in the world of portable phones and also offers other services like internet services, games,
application, mass and media and navigation services to its customers. This organization possess around
1, 25,000 employees across 120 different countries, and sells its products in more than 150 nations and
attains an annual revenue of nearly $38 billion. In the year 2012 Nokia became the world’s second
biggest mobile phone manufacturer with a global market share of 22% in the initial first quarter. Managing
such a big organization is not an easy task and diverse concepts of strategic changes are being
implemented in order to attain the organizational objectives and satisfy its work force (Types of
Organizational Change, n.d).

Strategic changes is an ongoing process in any of the organization and in this context various models of
changes have been developed that could help management to achieve its organizational objectives. The
model for strategic change is;

ADKAR model

It is one of the most widely spread and designed after models for change management, it is a simple but
extremely powerful model to help in maintain a successful change in a management. ADKAR model is an
individual change management model that outlines the five areas of building blocks of successful change
it consists of A- Awareness for the need of change, D- Desire to contribute and sustain the change, K-
Knowledge on how to implement change, A- Ability to enforce essential skills and behavior and R-
Reinforcement to maintain the change (Warrilows, 2013).

J P Kotter model for change

This model depicts the 8 step change model with the help of which companies can avoid failure and
become adaptable in the changing environment. Firms can enhance and raise the chances of success
for its present and future in the ever changing world. The eight steps are divided as follows;

Step 1 – Establishing a sense of urgency and aid others to view the changes to be convinced for
significance of acting immediately.

Step 2 – Building the guiding coalition and organize a group with sufficient amount of power and
motivate the group to work jointly as a team (Nauheimer, 2012).

Step 3 – Development of change vision to help in to direct other with change effort and design
strategies to attain the same.

Step 4 – Communication of vision and ensure that maximum of group could be understood about the
vision and strategy.

Step 5 – Empowerment of broad based action and removes the barriers in change system to
undertake risk.

Step 6 – Generate short term win and plan for attainment that can conveniently be made visible and
recognize the involved employees in it.

Step 7 – It focuses on never letting up and utilizes increased credibility to manage the changed
system and reinvent the process with new projects and changing agents.

Step 8 – Include changes into culture and combine the connections between new behavior and
organizational success (Nauheimer, 2012).

From the analysis of both the above models it could be concluded that Nokia can implement ADKAR
change model in its strategy as it will provide long term benefit for the firm. The model is clearly focused
towards major areas that will help in Nokia to achieve its organizational goals.

Relevance of the models in Nokia

The ADKAR strategic management models reflects the movement of strategic management decisions
made by the organization, ADKAR model mainly gives attention on setting up of aims and objectives and
find out the various steps that are required to achieve those aims and objectives. In this case study the
issue being here highlighted defines underwent changes in the organizational structure of Nokia over the
period of time and modifications made by the company with respect of its people. In the year 2004, Nokia
went with a massive change in its structure by changing its nine business units into four, in order to focus
more deliberately on the aspirations of its customers (Cowan, n.d).

By enforcing ADKAR change model In Nokia management structure it can attain several benefits like it
moves ahead beyond the state of change and as a context of present and future transition it will provide
more of suitable information about the manner that one move from change process individually. In order
to move out of the present condition an individual requires to awareness about the need for change and
desire to take part and support the change in organization. Nokia adopted the changes in people
strategic change model for building a stronger team, people change model aims towards implementing
for a long term or small scale; in context of long term changes the management of this organization
decided to implement a changes in the structure as nine diverse units were merged into four and in order
to ensure speed and innovation in the firm all the customer based operations and market operations,
product developments units and logistic support activities were reorganized into three distinct unit
(Partington, 1996).

Benefits of Strategic Change Model in Nokia

Proper planning and implementation of strategic changes is very much important in any of the
organization, Strategic changes basically focuses on managing the strategically changes; it is a long term
plan to attain the precise goals and objectives of the company. Strategies are generally aimed towards
the future and bring in about sustained changes in the organization that requires detailed planning and
assessment of the prevailing strategies (Paton and McCalman, 2008).

By enforcing the ADKAR change management model in Nokia, it can attain several benefits in it like, as
the model directs change activities and focuses on results and not on tasks. In present situation Nokia
needs to achieve appropriate results in its current condition. Other than this model can help in
communication of strategies that can be focused and would also into measure the changing progress
down to the individual level in management of firm. Through this Nokia can also provide its managers a
proper tool to resist in the change that generally occurs due to behavior issues or skills (Griffin, 2007).

Many of the other advantages could also be practiced by the organization; the innovation in the
organizational structure of Nokia will help in it to encourage co-creation in the workforce it means that the
firm promoted cooperation among each of the staff members that will direct to an augmented wealth of
wisdom, creativity and experience among the employees. All these will direct towards an increased
revenue and positive word of mouth for the organization.

Issues Related to Strategic Change in an organization

In order to be affluent in the market place the firm need to be able to react and adapt with the changing
global market. An organization should implement strategic changes in order to survive and it can be at
times difficult because at some point of time it requires major transformation in the organizational
structure and process.

Need for Strategic Change in Nokia

Due to occurrence of recession Nokia has faced a decrease in its demand level and the product of the
firm was facing a tough challenge in the entire global market. In this condition the management of Nokia
needed to bring in a strategic change in its structure so that it can manage the competition. Many kinds of
modifications were required in product as well as the organizational structure of the firm, as its other
competitors were focusing towards innovative product development and implement strategic change in its
management (Wiersema and Bantel, 1992).

The organization underwent with a major change in the year 2008, when it launched the Booster
program. Changes were required in the strategic planning process of Nokia because of massive changes
in the external environment that the firm needed to cope with the challenges, other than this modifications
were also required because the organization was facing severe challenge at the time of communicating
with its staff members, Nokia needed a much advanced and suitable strategic process to converse easily
with the employees and meet the global challenges. In this context enforcement of new model for change
will help in to enhance the productivity level of Nokia.

Factors driving the need for strategic change in Nokia

Strategic changes require proper planning and implementation in the management structure of an
organization. There must be a climate in which changes could be made a new strategies can be enforced
in the organization. Nokia was in a situation where it needed severe changes in the organization; in this
context several factors were determined that determined the need for strategic changes in the
corporation. One of the reasons was massive amount of changes in the economical structure of the
nation; changes in the economy affected the business at large as ultimately firm has to make trading in
the prevailing economy (Gioia and Chittipeddi, 2006).

Various other factors were also derived the need for strategic change in Nokia, in this respect one of the
prominent reason was the increased level of competition in the global world. The market condition was
frequently changing and many new technological gadgets were introduced in the market by other firms
that decreased the level of market share for Nokia. The rise in the level of competition especially from its
numerous competitors encouraged Nokia to bring in major changes in the management of Nokia (Leger
and Oxner, n.d). The other challenging situation for the company was introduction of novel innovative
products in the market by its competitors.

Resource Implications of Nokia not responding to Strategic Change

Nokia is one of the leading Information and Technology Corporation all around the world; it is a massive
organization in terms of manufacturing, producing and generating revenues in the global market place.
Nokia was at a critical juncture where strategic changes were required in order to retain the brand identity
(Todnem, 2005).

The resource implications factor that will make the management to face in the challenging situations were
firstly the cost of training involved in imparting new skills to employees. When change will occurs in
organization the cost included in giving new skills will increase the firm’s cost. The other implications that
the management will face is the cost of redundancy included in the management, by enforcing new
change model the organization will require to manage the changed behavior of employees and retain
them in the firm.

Stakeholders in Developing a Strategy for Change

In the management concept shareholders are regarded as the owner of the business, they are the
regarded as one of the key drivers of the business. They play a crucial role in financing, governance,
operations and in controlling various aspects of business.

System Involving stakeholders in the Planning of Change at Nokia

Shareholders have a crucial role in the planning process of strategic change in any if the organization; in
Nokia Corporation the stakeholders were also involved largely in the strategic change process. The
system that involved stakeholders was mainly in the area of financing; it includes major investment
decisions that were required in Nokia in order to implement strategic changes in company. Other than
this stakeholder were involved in the operations of business, as by establishing changes in the
organizational communication process and hierarchy of the company the shareholders will also get
influenced and they need to be informed about the various changes that the organization is planning to
enforce (Barker and Duhaime, 1998).

The case study here in depicts that Nokia is a state where it requires strategic change in its
management, in this condition the firm included several shareholders in different strategic decisions and
they were involved in both direct and indirect role in the operations of firm. In this situation the
management of Nokia needs to focus to major areas in decisions making and acquire the benefits by
globalizing its process in the entire world.

Change management of Nokia with Stakeholders

Change management is an approach to transform from the desired state to the expected for an
individual, group or organization. It is a corporate process that helps stakeholders to accept and embrace
the changes that are required in the business environment. Nokia implemented several strategies that
also included its stakeholders in the major decision making process, as the organization was facing tough
global challenges the company needed to transform the basic operations and enforce new operations in
the business (Leger and Oxner, n.d).

Nokia firstly implemented the transformational change in its management with the help of it submerged
several different units by enforcing stakeholders in and novel method of communication and technology
were introduced in the management. The other change management model enforced by Nokia was
incremental change in its management through this the firm changed many of its systems in its
operational departments and these ultimately provided an increased benefit to firm like enhance
cooperation and co-creation activity in the management and employees (Wiersema and Bantel, 1992).

System Used by Nokia to involve Stakeholders in the Planning of Change

Nokia used various strategies to plan and implement changes in the organization, firstly it removed the
traditional method of top-down changes in the organization and in the newer method it tried to make all
the employees a part of the solution. This led to an increased satisfaction level of employees with the
organization and started finding an ultimate place to work with, in the planning of change Nokia with the
help of its stakeholders helped it enforce other strategic changes as well (Stakeholder Involvement in
Change, n.d).

In order to include shareholders in the planning process of change Nokia utilized the system of Booster to
communicate with its stakeholders. Through this method the company was able to design its art and
technique to effectively communicate with its management. In any kind of profession included with
transformation of information, Booster communications mainly aided in management of organizations
online functions and develop strong skills to communicate with shareholders.

Resistance to Change

Change is a process that is generally not acceptable easily in any of the organization, resistance to
change is a natural reaction where employees react differently in every short of manner. Yes, the firm did
incorporated strategic change in its organizational structure and introduced several kinds of novel
approaches and methods of working in the organization that initially bring in some of the critical issues
among the employees especially who were not prepared to accept the change in management.

In due course of time the employees also recognized the value of changes that were being incorporated
in the organization, as the novel methods by Nokia were designed in-line with the comfort and easiness
of the employees. The strategic change process introduced many of the several benefits like all the
employees participated in the new structure and business practice that was organized by firm and it
helped them to evaluate the real difference during the program (Grover and Malhotra, 1997).

Planning to Implement Models for Ensuring Ongoing Changes

Implementing change in any of the organization is a difficult task, but is sometimes required very
significantly; change is recognized as a necessity that facilitates firms to survive in the ongoing flow of
business process. In any of the organizational activity implementing the change process requires an
appropriate blend of leadership qualities and awareness about the prevailing situations in the work
culture (Aspara and et al., 2011).

Appropriate Model for Change in Nokia

Appropriate change management is required in any of the business corporations to meet the dynamic
and changing environment of business. Proper training is need to be provided to the employees of the
organization before implementing any of the change model in the firm; during this training process the
employees could be informed about the various benefits and advantages by bringing change in the
organization and how they can resist in the changing environment (Nokia outlines new strategy,
introduces new leadership, operational structure. 2012).

After the analysis of this case study the beneficial model to enforce change in the management structure
of Nokia would be driven by J. P. Kotter change management model i.e. Eight step model. This model is
mainly divided into eight sections and defines the suitable steps through which new strategies could be
enforced in the organization.

Plan to Implement the Model for Change

The above defined force field analysis helps in look into various factors that influence a circumstance that
defines the various stages of changes that occurs in the strategic decision making process. It is mainly
defined into three major steps the first step is the Unfreezing it is the situation where actual requirement
of change is being explained and the nature of change that is needed in the organization. In this step
Nokia corporation can explain the basic necessitates of change to its employees and those can affect
them in that way the progress will be planned and monitored and by the senior officials (Types of
Organizational Change, n.d)

The plan to implement change in management of Nokia includes some of the critical factors that are
required to be managed properly, in this context the plan is basically divided into eight major sections
initially the management needs to analyze the sense of urgency to bring in change in the management,
the next step includes forming up of coalition in order to plan the structure efficiently, the third step
includes creating vision for the firm associating with company, the fourth step involves communicating the
vision among the entire workforces further more in the fifth step empowering people to manage the effect
of change, the sixth includes generation of short term wins in the management structure. This process
will lead towards seventh step that includes consolidating profits and producing more of change in firm
and the last and final step should be focused to sustain in the new culture of changed model (Nokia
outlines new strategy, introduces new leadership, operational structure, 2012).

Appropriate Measures to Monitor Progress in Nokia

The change enforced in the process of management could be monitored by several strategies; in this
context some of the major strategies like step by step evaluation and assessment of changes in the
organization could be monitored other than this focus would be given to measure both the quantitative
and qualitative factors to measure the progress in the organization that has being happened after the
implementation of new change model (Douglas, 2009).

Conclusion

Strategic management in business process is mainly attained with the utilization of strategic planning
process and Nokia Corporation has implemented several changes in the organizational structure
successfully with the mission and vision of organization.

References

Cowan, L. S., n.d. Change Management. American Society for Training and Development.

Gioia, A. D.,and Chittipeddi, K., 2006. Sensemaking and sensegiving in strategic change initiation
Sensemaking and sensegiving in strategic change initiation. Strategic Management Journal.

Griffin, W. R., 2007. Fundamentals of Management. 5th ed. Cengage Learning.

Grover, V., and Malhotra, M.K., 1997. Business process reengineering: A tutorial on the concept,
evolution, method, technology and application. Journal of Operations Management.

Harrison, D.B., and Pratt, M.D., 1992. A methodology for reengineering businesses.

Hoisington, H. S., and Vaneswaran, A. S., 2005. Implementing strategic change: tools for transforming
an organization. McGraw-Hill.

Leger, M., and Oxner, J., n.d. Change Management. Institute of Public Administration of Canada.
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