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OD Intervention At Nokia


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Organisational Development

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OD Intervention At Nokia

  1. 1. Organizational Development Intervention (At Nokia Corporation) By - Akash Yadav, Anurag Singh, Ashima Mathur, Rajanikanta Nayak, Shruti Aggarwal and Sumit Singh
  2. 2. Diagnosis : (Background and Need for Change)  Crisis of market leader  In the late 1980s, Nokia launched its first mobile phones. (Nokia Corporation 2011) Along the 1990s, the Finnish phone manufacturer launched phones with innovative features and different form factors to quickly respond to the market’s needs, which led it to become the largest handset manufacturer in the world.  Rise of touch-based modern smartphones  In mid-2000’s, Some manufacturers such HTC, SONY, HP came up with touch screen based mobile that came up with Microsoft windows OS, though these devices had resistive touch but their advanced features were welcomed by market and customers started to get used to touch only smart phones
  3. 3. Continued . . .  Fierce competition from Apple, Google and Others  capacitive touch screen that supports multi-touch gestures  Nokia also launched touch phone “5800 XpressMusic” in October 2008, but it was nowhere comparable with the iPhone and had quality issues  In Late 2008, Google started to step in and introduced the Android platform  Huge loss indicated in consecutive quarters:  Nokia was continuously reporting huge losses but still was not able to understand the market demand and need for change
  4. 4. Resistance to Change  Becoming inward looking :  long-lasting success of the Symbian platforms had caused Nokia to become inward looking. There were also numerous factors that had discouraged Nokia to bring their great innovations out to the market promptly, and we will discuss them below.  Bureaucracy :  not the innovation but the organization structure that caused significant delays in decision making process , Large touch screen phone, 3D user interface  The OSSO and the MeeGo OS:  Nokia did not include phone capabilities in the early “Internet Tablet” product because the Symbian team directors worried these product could be with the Symbian-based communicator series.  Uncertainty Avoidance :  cultural differences between Scandinavian and North American cultures, especially Finnish’s feminine and strong uncertainty avoidance attributes were underestimated
  6. 6. Planning to change Based on the diagnosis done, it takes the results and comes up with intervention plans based on six different subsystems. Under every subsystems, we try to find out the issue/ problem and then various solutions are proposed and on the basis of these solutions possible effects on other subsystems is found out.
  7. 7. Sub- system People Authority Environm ent Task Policy Informati on
  8. 8.  People Subsystem : Focus on the personal flow interventions and educations.  Authority Subsystems : Focus on authority relationships in job titles or other informal means.  Task Subsystems : Focuses on employee satisfaction and the technology on which the job is based.
  9. 9.  Environmental Subsystems : Focuses on organisation’s own architecture and external factors that affect the organisation.  Information Subsystem : Focuses on visibility of important information and knowledge sharing.  Policy/culture Subsystem : Focuses on rules concerning working hours, reward system, promotion and work procedures.
  10. 10. Implementation of The Change Acquired an application development platform – ‘Qt’ To bridge up the application development platforms across Symbian and MeeGo Sold Qt to Digia, a Finnish company where 125 Nokia employees also get transferred Sold Vertu to a private equity Veruta- a luxury brand of Nokia and highly profitable with double digits sale Sold Veruta to a private equity group named “EQT VI” to stay focused on Windows smartphones Dissolution of MeeGo team Although Meego a platform of future disruption yet loss making Nokia devoted attention to Windows Few Meego team members shifted to Windows application development others left as they were not comfortable
  11. 11. Implementation of The Change Large scale layoffs and sales team restructuring Nokia transformed from a highly profitable company to a company that recorded huge losses in consecutive quarters Gone through a large-scale layoffs to simplify organization structure and get rid of long suffering bureaucracy issues Mass launch of Windows Phone products Nokia extended the Lumia series with a full range of Windows Phone 8 products The top model Lumia 920 became one of the best-selling models in many countries, and Nokia started to become profitable again in Q4 2012
  12. 12. • Employee’s Resistance • Market’s Resistance Resistance to change Intervention)
  13. 13. Employees’ resistance Elop’s February announcement lead to a protest Employees worried about losing job Various leadership team members decided to leave the company the Chairman of Nokia, Chief Technology Executive, Vice President, Head of Mobile Solutions Chief Development Officer, Head of MeeGo Devices, Lead Program Manager of Imaging Experience, and many more.
  14. 14. Market’s Resistance User’s dissatisfaction • Sudden abandonment of Symbian and MeeGo in favour of an outsider’s platform made them angry because many of them disliked Microsoft Network operators • They worried that Windows Phone users would heavily rely on Skype to make international calls over the 3G networks, putting their international calling businesses at risk Intel • They mentioned that Nokia was the wrong partner they picked and hence dropped plans to release a MeeGo smartphone based on Intel’s chips Software developers • The closed source nature of Windows phone heavily limits developers’ freedom to innovate, and developers often have to work around different ways to bypass the restrictions imposed Shareholders • Shareholders were shocked about the strategy shift and Nokia’s share price was steep-dropped by nearly 10% immediately
  15. 15. Evaluating Change  Forming a broad strategic partnership with Microsoft to build jointly a new mobile ‘ecosystem’;  Aiming to gain volume and value growth by connecting ‘the next billion’ to the internet in developing markets;  Making focused investments in next-generation technologies; and  Putting in place a new leadership team and organizational structure with a clear focus onspeed, results and accountability.
  16. 16. Alternate Change Plan 1. Early Adoption 2.Expansion 3.Innovation
  17. 17. References    
  18. 18. The End Questions?