Change management failure of Nokia PDF

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Change management failure of Nokia...

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Organizational Change Failure

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Organizational Change Failure of NOKIA Wilmington University Harshit Rawat

Abstract

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Nokia being one of the well known mobile manufacturing companies has established the leadership in the global mobile market and has been very effectively and efficiently working on its business processes such as good product delivery, the process of market management, promotions and distribution, all of which are the critical aspects that are significant to the business. However one thing that the organization has failed to live up to is to understand the changing market trends and customer expectations. In this paper, the main focus has been on understanding how the principles of change management like adapting a framework named PROSCI model would have helped the NOKIA in successful change management and organizational transformation.

Table of Contents

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SERIAL NUMBER

TITLE

PAGE NUMBER

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Abstract

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Introduction

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Reasons of failure

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Change management method

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Change management approach

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Conclusion

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References

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Introduction Information and Communication technologies have entered into the modern day communication systems.The type of revolution the mobile phones technology had brought was exceptional and the kind of impact the evolution of mobile phone has made is that it changed the dynamics of the communication.

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Despite the fact that there were competitors who have come close to competition on targeting the mobile manufacturing facilities, the market dominance of NOKIA has been unmoved and during a point of time, the moment someone planned for mobile phone, NOKIA was the first and the only choice that came to their minds. Despite the fact that NOKIA has been regularly releasing the new models frequently, the issue is that the focus was only on the design change and the models rather than looking at the “Out-of-Box” approach which the competitors have tried in terms of capitalizing on the emerging technologies. The company laid its primary focus on quality of its product line, the market management, distribution systems and networks, and customer service. In this report, the focus is upon the reasons why the company like NOKIA had to face failure and how the issues of change management has impacted the whole organization, the reasons that could be attributed to the failure and other key factors that could provide insights into how effective implementation of an right change management approach could have supported the efforts of transformation which NOKIA has made (kel, 2012).

Reasons for the failure of change management in NOKIA Keeping the stakeholders in the loop is very important and essential for the organizations when the organizations plan their transformation. During such important phase of transformation, it is critically essential that all the employees in the organization, the executive team of the organization, and other external and internal stakeholders of the organization share a common vision in terms of the objective for change in the organization.

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But the crux is that in the case of NOKIA and its management for change in the organization, the organization has ignored the importance of being updated on the customer expectations, and at the same time estimating the technological advancements. It can be credited to the poor communication management, that with so many talented people working in the organization, still the organization has reacted to the need of change management at very late stages. The disinterest and the disengagement from the frontline staff like the sales people in the organization has been more impactful for the organization , this only emphasize the fact that the communication on the change management process and the approach has not been effective which has led to the issues of failure in terms of change management (Lomas, 2012).

PROSCI method of Change Management One of the effective change management theories that depict a methodical approach to the change management problems is the PROSCI method. In this model of change management, there are three important stages in the process of change management. PROSCI is a well recognized research which focuses on the change management related issues that have developed a framework based on the insights from various cases and real life implementations of successful change management strategy (Bourda, 2013). In the case of NOKIA, if the PROSCI framework approach would have been adopted, it would

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have given a totally different kind of make over to the organization. In the PROSCI method, the primary emphasis on change management is on a three phased approach, where in the first phase the organization prepares for the change (Bourda, 2013). NOKIA has made its move towards the first phase of the change management, only a small part of the phase has been implemented successfully. The key in the first phase of transformation is the development of sponsorship. Many organizations have failed the first phase of transformation. This could be due to many factors like the missing accountability (Bourda, 2013). The other stages of the PROSCI model of change management have been very much inefficient in the case of NOKIA. Had the change management team stuck with such an effective and efficient strategy and had a detailed project charter, the current level of issues might not have been envisaged by the implementation team (Bourda, 2013).

Change management Approach NOKIA had realized the issue of urgent and immediate need for change and has ensured that it had a tie-up with another technology giant Microsoft, and started its investment into the smartphone domain and the touch mobile domain. However, this organizational change management has to be carried out effectively, keeping the stakeholders in the loop effectively. The main reason why NOKIA despite of its entry into the smartphone domain could not leave a mark in the global mobile phone market is that the issues pertaining to organizational culture, human resource management, and the unshaken confidence of the employees in the organization due to the downtrend which the organization is facing during the uptrend market scenario (Birkinshaw, 2013). According to the Prosci change management model, it is critically important that the organization

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management should have adapted to a phased restructuring method and also engaging the main stakeholders of the organization in to the task of the transformation process which the organization was targeting for. In overall, there are various reasons for the downtrend of NOKIA like not living upto the expectations of the customers, ignoring the changing market trends, internal issues of management and the challenges of the losing market share , and many other intrinsic factors have become the key issue related to the organizational failure for transformation.

Conclusion NOKIA has been one of the leading players in the mobile phone industry has been very effective and frequent in terms of releasing new designs that could attract the global markets. But over a period of time when the organizations are more driven on the changing trends and started working on new kind of mobile product technology, NOKIA had stick to its old and the traditional mobile devices and kept altering its target audience. However, when there was a critical need to change, the fundamentals of the change management has not been effectively laid out by the organization. This only highlights the fact that for any organization, there could be a possible need for change management and during such a scenario it is critically important that the organization adapts the change management theories and principles that could guide them a direction and the outcome from the entire process of change management.

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References Birkinshaw J., ( May 08, 2013) Why corporate giants fail to change. Retrieved from: http://fortune.com/2013/05/08/why-corporate-giants-fail-to-change/ Bourda, F. M. (2013). Change Management Theories and Methodologies. Retrieved from: https://culcivansoon92.wordpress.com/2015/07/21/theme-4-leadership-and-change/. kel. (April, 2012). Nokia Case Study. Retrieved from: http://aeunike.lecture.ub.ac.id/files/2012/04/Case-Kel.10.pdf Lomas, N. ( December 31, 2012). Innovate Or Die: Nokia’s Long-Drawn-Out Decline. Retrieved from: http://techcrunch.com/2012/12/31/nokias-long-drawn-out-decline/

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