Introduction
The increasing number of organizational initiatives incorporating elements of change necessitates the understanding of these initiatives as indicators of change within the organization. Leaders undertaking the roles of managers within the organization are better-placed implement that serve as sustainable change agencies within the organization. Research into sustainable change management highlights the role of effective leaders in the implementation of organizational initiatives (Hornstein, 2015). Change initiatives aim to improve the effectiveness and efficiency of processes to facilitate organizational adaptation and growth. While change management concepts emphasize the inherent characteristic of continuity in its implementation, the course for initiating change varies from one organization to another. Leaders have a responsibility to initiate change strategies that not only improve adaptability within the organization but also improve the external advantage of the organization by enabling it favorably compete with others. Businesses offer a particularly challenging environment for implementing change initiatives in situations where the success of the initiatives is significant in the overall success of the business.
Change Initiatives at Nokia
Nokia’s reemergence as a competitive company in the networking industry is attributed to the management’s bold move to implement bold change initiatives that would prevent the company’s downward spiral. Nokia’s dominance in the mobile phone’s market was halted by the emergence of giant competitors like Apple and Samsung. The company was ultimately pushed up of the mobile phone’s business in 2014 due to unsustainable losses and the inability to cope with the prevailing market process. Leaders within the organization identified the need for a reinvention in the highly competitive market. Although cell phones made up the bulk of the company’s revenue in its heydays, sales had plummeted leading to the almost collapse of the company. The company had to ditch the production of mobile devices if it intended to favorably compete in the technology industry.
Delegate your assignment to our experts and they will do the rest.
The management took the intrepid decision to sell the business devices section to Microsoft and concentrate the organization’s resources on networking equipment. This represented a shift from Nokia’s previous core business to the networking equipment field that the company had not explored extensively (Wang, 2018). The bold move to ditch the company’s previous main product to concentrate on another line with great potential provided the spark for the company’s revival. Another challenge lay in Nokia’s way, the company had a running partnership with Siemens, a direct competitor in networking equipment manufacturers. The management took a decision to buy out Siemens and implement a structure involving an aggressive business plan, a new capital structure, and innovative management teams. Since the commencement of the change initiative as Nokia, the company’s fortune took a positive turn as evidenced by the continued rise in share prices as well as experiencing an upturn in its market value.
Important Strategies
Nokia’s strategic approach to the challenge of the plummeting of mobile devices was responsible for the company’s revival. The impetus for the improved performance of the company was a restructuring process considering the company’s ability to reestablish dominance in the mobile phones market. A move to create leadership development that aligns with the company’s new approach was a crucial strategy in the restructuring process (Kotter & Cohen, 2012). Restructuring the company’s leadership was vital in engaging new ideas to the rapidly changing mobile devices and networking equipment industries. Technological advancement laid absolute Nokia’s approach to manufacturing while the company’s leadership provided few opportunities for the company to innovate and keep up with competitors. Restructuring with focus on leadership development facilitated the company’s main agenda for new innovative ideas to spearhead Nokia’s new agenda. Restructuring of the company’s processes allowed the elimination of non-profitable ventures and concentration of resources on ventures with a higher potential for financial success. However, aligning the new ambition to the leadership values posed a challenge to the organization. Identification of leaders with shared values was crucial to the successful implementation of the restructuring process.
The management’s decision to venture into the lucrative networking equipment industry strengthened the company’s reliance on the massive setback that almost led to the collapse. The decision to quickly shift their focus is comparable to Kotter & Cohen’s (2012) first step of creating urgency in initiating a successful change. The management identified the need to act in time to prevent further damage to the company’s reputation and also establish dominance in a rapidly changing industry. The executives reached out to the management on the best move to create a resurgence and increase Nokia’s revenues. In spite of being a strong brand in the production of cell phones, the course was highly competitive and unlikely to provide the spark that the company needed in the long-run. A different approach was established and rapidly implemented, as opposed to procrastination. A decision to create motivation and avoid complacency through finding evidence to support the success of the project was colossal (Kotter & Cohen, 2012).
Impact of Change Initiatives
Change initiatives at the organization were not sporadic. A strategic approach to the change process for the organization was responsible for the success of the initial plan. Despite the perceived ease of organizational change processes, the implementation change initiatives at Nokia draws on the combined team effort of several leaders at various levels of the organization to successfully reinvent itself as a dominant player in the networking equipment industry. Consequently, the change initiative impacted on the organization's leaders, employees and other stakeholders.
The change initiative at the company highlighted the importance of transformational leadership at an individual level. Initiating change initiatives is a dynamic process, reliant on the ability of individual leaders within the organization to provide the right motivation and drive to the process. Transformational leadership skills were crucial in the formulation of the company’s strategies and their full implementation. Transformational leaders effectively inspire other employees to work towards achieving the organization’s goals through motivational thinking (Choudhary, Akhtar & Zaheer, 2013). The process was a learning experience in leadership skills capable of creating change in a dire situation. Action in motivational thinking follows a strategic approach with a focus on initiating change for positive outcomes.
Change at Nokia underlined the importance of teamwork in initiating change at the organizational level. Teamwork was colossal in setting the tone for organizational success at Nokia. Functional teams build by the management were colossal in creating a strong drive for implementing the change initiatives. The approach to teamwork at the organization improved due to strategies applied at the implementation stage. Consequently, the employees and the management built excellent working relationships. Additionally, the success of the change initiative at Nokia provide a learning experience of the integration of leadership skills into management. Change management demands an in-depth understanding of aspects of human resource management and their application in organizational improvement. Organizational growth is impossible without embracing change. In light of that, the management at Nokia decided to implement changes to their production process in order to create a favorable internal environment to compete. While leadership skills such as transformational leadership are vital in the overall approach to organizational management, change initiatives introduce a different perspective on the leadership process. The efficacy of leadership skills is achieved at critical points in implementing change at the organizational level.
References
Choudhary, A. I., Akhtar, S. A., & Zaheer, A. (2013). Impact of transformational and servant leadership on organizational performance: A comparative analysis. Journal of Business Ethics , 116 (2), 433-440.
Hornstein, H. A. (2015). The integration of project management and organizational change management is now a necessity. International Journal of Project Management , 33 (2), 291-298.
Kotter, J. P., & Cohen, D. S. (2012). The Heart of Change: Real-life stories of how people change their organizations . Harvard Business Press.
Wang, D. (2018). 4 Examples of Companies that Nailed Organizational Change. TinyPulse. Retrieved on 24 August 2018, from
https://www.tinypulse.com/blog/sk-examples-of-companies-that-nailed-organizational-change
