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PRESENTED BY: Ahmed Nauman| Jawwad Janjua| Lauretta lauretta| Samuel samuel| Viren Singh

CONTENT
Introduction
About Leadership
Leadership & Change Management Issues
Leadership & change Analysis
Evaluation & Implication
Significance of Issues
About
Public Limited Company
CEO - Stephen Elop
Multinational communications and information technology
Founded in 1865, Finland
Employed Over 61,656 people across 150 countries
Market leaders for 14 years, in early 1990
Main Competitors Samsung and Apple
Microsoft acquired NOKIA in April 2014 deal totaling $7.9 billion

(Nokia,2016) (Yang, Lee April 27, 2012)


Who Killed ?
Technically Inferior
NOKIA was complacent
Poor Leadership
Nokia people weakened Nokia people
Terrifying Reputation of Higher Management
Afraid of the external environment
Not meeting their quarterly targets
High task and performance focus
Misleading Data Performances
Lack of Motivation in Middle Management

(O'Brien September 26, 2010) (Nokia, 2011) (Apple Inc. January 9, 2007) (BBC, 2013)
Leadership & Change Management Issue
Management
Cultural Differences & Nokia & Microsoft Devices Group Business
Autocratic Leadership
(CEO of NOKIA - Stephen Elop)
(Ray, 2011) Strategic partnership with Microsoft included:
Windows Operating System in devices.
Microsoft Bing as the major search engine.
Hofstedes Culture Comparison: Finland and Canada Microsoft adCenter offering advertising services.
(The Hofstede Centre, 2010)
Nokia HERE GPS service integrated with Bing search
engine.
Combine Nokia content store with Microsoft Market
Place
(Torossian, 2016)


Leadership & Change Management Issue
Internal Resistance to Change

Employees Resistance Shareholders Resistance


Disagreement and Resignations
(Neate, 2011)
Nokia stock decreased by 19%
after announcement of
partnership with Microsoft.
(Burrows, 2011)
Leadership & Change Management Issue
External Resistance

Customer Preference Technology Resistance Network Providers Resistance

Loyal customers were seeking an Disputes among Symbian and MeeGo


updated version of Symbian and software and application developers.
MeeGo not a new operating system. (Lukac, 2011)

(Edmonds, 2012)
Force Field Analysis
Forces For Change Forces Against Change

Culture Differences
New Leadership Strategy (CEO)

Employees
Market Change (Technology)
Strategic
Partnership with
Microsoft Technology Resistance
Competitors

Customers
Customer Demand

Shareholders

(Lewin, 1943)
Change Evaluation Kolb and Frohman's Model

Month to decide on a platform

Absent

Chaotic situations

No solutions

New Management - OS

Miscommunication, poor stakeholder analysis


Seek independent consultant to evaluate

High employee turnover, decrease in sales

Kolb & Frohman's Change Model (1970), Burrows (2011), Laamanen, Lamberg, & Vaara (2015)
Lewins Model of Change: NOKIA as an Ice Cube
Theory Actual Change

Create a supportive Poor Communication with


environment for change the employees

Employees Turnover

Executing the Change Change In the Operating


System

Operating system was forced


Implementing the Change
on the users

(Keen, 1981)
Emotional Response Shock- Abandoning Symbian
3.5
Y-Values OS, moving to Windows based
phones
3 Denial - Stakeholders and
customers were in the denial
stage
2.5
Anger - Walkouts and protest by
Emotional Response

employees, Negative Comments for Nokia


2 on social media and on internet.
Consumers were not happy as well

Bargaining - Users and developer


1.5 tried to ask for the facilities which they
were using before on the Symbian but
Y-Values denied by the organisation

1 Depression - Employees
resignations, customers switch to
android, drop in
share prices
0.5
Test- Users try out the new
windows OS
0
0 1 2 3 4 5 6 Acceptance - Facilities provided
by the Nokia were competitive and
TIME accepted
by the people.

Kolb & Frohman's Change Model (1970)


CONCLUSION
- Culture Mismatch

- Poor Communication

- Slow response to Rapid market Change

- Failure to fulfil Customer Demands

- Products are not competent

- Missed goals , values and objectives

- Lack of Motivation

- High Employees Turnover rates

- Acquisition by Microsoft
References
Apple Inc. (2016). Apple Reinvents the phone with iPhone. Retrieved October 25, 2016, from http://www.apple.com/pr/library/2007/01/09Apple-Reinvents-the-Phone-with-iPhone.html
BBC (2013, July 18). Nokia shares fall after sales drop in second quarter. BBC Business. Retrieved from http://www.bbc.co.uk/news/business-23353959
Burrows, P. (2011, June 2). Stephen Elops Nokia adventure. Bloomberg. Retrieved from http://www.bloomberg.com/news/articles/2011-06-02/stephen-elops-nokia-adventure
Center, M. N. (2011, May 10). Microsoft to acquire Skype. . Retrieved from https://news.microsoft.com/2011/05/10/microsoft-to-acquire-skype/#sm.0004b6a8r1btre1mutg2pntwnfrw1
Edmonds, R. (2012, May 22). Nokia withdraw Skype support for the Lumia 610? Retrieved October 24, 2016, from article, http://www.windowscentral.com/nokia-withdraw-skype-support-lumia-610
Frohman, A., & Kolb, D. (1970). An organization development approach to consulting. Sloan Management Review, 12, 5165.
Goleman, D. (2000). LEADERSHIP THAT GETS RESULTS. Harvard Business Review, 78(2), 7890.
The Hofstede Centre. (2010, June ). Finland - Geert Hofstede. Retrieved October 24, 2016, from Geert Hofstede, https://www.geert-hofstede.com/finland.html
Keen, P. G. W. (1981, January 1). Information systems and organizational change. Communications of the ACM, 24(1), 2433
Laamanen, T., Lamberg, J., & Vaara, E. (2015). Explanations of success and failure in management learning: What can we learn from Nokias rise and fall? Academy of Management Learning & Education, 15(1), 225.
doi:10.5465/amle.2013.0177
Lewin, K. (1943). Defining the field at a given time. Psychological Review, 50(3), 292310.
Lukac, M. (2011, February 11). Analyst: Nokia deal Reeks of desperation. Technology. Retrieved from http://www.ibtimes.com/analyst-nokia-deal-reeks-desperation-266181
Neate, R. (2011, February 11). Nokia teams up with Microsoft to take on apple, Google. The Telegraph. Retrieved from
http://www.telegraph.co.uk/finance/newsbysector/mediatechnologyandtelecoms/telecoms/8319571/Nokia-teams-up-with-Microsoft-to-take-on-Apple-Google.html
Nokia. (2016, January 12). About us. Retrieved October 25, 2016, from http://company.nokia.com/en/about-us
Obrien, K. J. (2015, January 3). Nokias new chief faces a culture of complacency. New York Times. Retrieved from http://www.nytimes.com/2010/09/27/technology/27nokia.html?pagewanted=all&_r=0
Ray, T. (2011, May). Nokias Calling-but Im Hanging Up. Barrons, p. 50
Subscribe to FT.com (2016). . Retrieved from https://www.ft.com/content/5eaa9514-3b94-11e0-a96d-00144feabdc0
Torossian, R. (2016, March 16). The biggest PR crises of 2016 so far (and what brands can learn from them). Forbes. Retrieved from http://www.forbes.com/sites/forbesagencycouncil/2016/03/16/the-biggest-pr-crises-
of-2016-so-far-and-what-your-brand-can-learn-from-them/#5b7bcbee5e78
Yarow, J. (2012, May 4). Nokias CEO talks about how Skype affects carrier relations. Retrieved October 25, 2016, from Business Insider, http://www.businessinsider.com/nokias-ceo-says-carriers-hate-skype-and-its-
affecting-windows-phone-sales-2012-5?IR=T
QUESTIONS

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