NOKIA Flashcards
Which 4 major stakeholders did Nokia fail to understand?
Where do they come under in the power/attention matrix?
- Customers (keep satisfied)
- Employees (keep informed)
- Managers (key players)
- Competitors
Define Path Dependency and explain how this is relevant to Nokia
Path Dependency is where early events and decisions establish ‘policy paths’ that have lasting effects on subsequent events and decisions. (very hard to break away from past decisions that worked)
Nokia knew that Apple were developing touchscreen technology a year in advance, and could have developed Path Dependencies to prepare counter measures
Which factors of the Change Kaleidoscope did Nokia have already, and which did they need to improve on?
they had:
- Capacity (had the resources to change)
- Capability (had the managerial capability)
- Time (knew 1 year in advance)
- Power (top managers could have made the changes)
They needed:
- Readiness (top managers weren’t ready to listen)
- Scope (didn’t understand breadth of OS needs)
- Diversity (top managers weren’t homogenous to MMs)
What Change Leadership Style should Nokia have used, based on their employees’ capabilities?
Collaboration
High Capability, High Readiness
What Implementation Choice did Nokia need to undertake?
Give a company example
Revolution (Speed = big bang, Extent = transformation)
Transformational change that occurs via simultaneous initiatives on many fronts; more likely to be forced and reactive because of the changing competitive conditions that the organisation is changing
(e.g. Foxconn)
What Leadership style did the Top Managers at Nokia need to exhibit?
Transactional leadership
emphasise ‘hard’ levers of change
e.g. designing systems, targets, financial incentives, project management and careful monitoring
What kind of decision did Nokia need to make in order to counter Apples’ new technology?
Non-programmed decision
‘customised’ in order to solve unique or non-recurring problems.
Which 2 aspects of the Behavioural Model apply to Nokia’s decision-making, and how?
what 2 characteristics would have been displayed?
Bounded Rationality:
TMs simplified the threats of their OS, and had high faith in their current tech, so dismissed the need to change.
Managers satisfice and not optimise:
TMs searched for the acceptable/satisfactory decision, which would have been to not change as they thought it was easier to do
(illusion of control, overconfidence)
What kind of mentality did the TMs inadvertently develop?
Bunker Mentality
refers to decision-makers who cut themselves off and, as a result, lose touch with reality
Which cognitive bias was most prominent in Nokias case?
Escalating Commitment:
the tendency to commit additional resources to a project even if evidence shows that the project is failing.
What are the advantages (3) and disadvantages (3) of Group Decision-Making?
Advantages:
- eliminates individual bias
- combined skills of the group
- greater ability to generate feasible alternatives
Disadvantages:
- can take longer to make a decision
- can be difficult to come to agreements
- can be undermined by group biases like Groupthink
Explain the steps of strategic Drift
Phase 1 - Incremental change
Phase 2- Strategic drift
(environmental + strategic change increasing a lot)
Phase 3 - Flux
Phase 4 - Transformational Change or Death
How were Middle Managers unable to fulfil their strategic roles?
Bottom-Up:
they couldn’t/wouldn’t champion their ideas to TMs
Top-Down:
TMs weren’t facilitating adaptability
From the Top-Down, what Enabling Conditions were mismanaged? (2)
Narration:
TM’s open up the internal logic of thought processes leading to the selection of strategic direction.
Trust:
TM’s encourage new ideas, as well as open communication regarding success and failure in experimentation
From the Bottom-Up, what Enabling Conditions were the most mismanaged? (3)
Responsiveness:
top managers respond to feedback, communication regarding success and failure in experimentation
Inclusion:
top managers invite and expect middle management to participate in planning
Refereeing:
TM’s react to new ideas, refereeing between ideas
