Need for Change Management

Nokia has been one of the pioneers in the industry and has been leading manufacturer of mobiles and
has been distributing and selling its mobile phones in so many countries across the world, despite all
it the company had to envisage critical challenges of sustaining its leadership in the market and over
a period of time it has lost the significant proportion to its market share to the competitors.

The reasons for the need of change management are very much visible from the above issue.

 At any given time, there is advent need for the organizations to have an open eye to the
global technological changes. The kind of disruptive technology of mobile internet has
emerged, NOKIA has not observed or accepted the intensity of the mobile internet revolution
and has ignored.

 Also the enhancing of features in the mobile phones has become limited over period of time.
Despite having a sound R& D department and the market inputs, the company has failed in
terms of analyzing the customer expectations and developing the product designs and
features that are in lines with the expectations of the customers

 Unless the companies develop the strategies to innovate, develop, transform themselves
according to the changing trends, the case scenario of NOKIA is inevitable. Even after the
smart phone revolution has stepped up and the companies are foraying in to smart phone
models, NOKIA has been following with its own target market of low end mobile consumers
and over a period of time the competition in the smartphone segments has made the players
reduce the prices drastically, and it has become a major threat for NOKIA as the low end
models market segment has also been eventually occupied by the other player

 Eventually, when the company realized the need for change and transformation, it was too
delayed and the market has been captured by the competitors. Repeated attempts from
NOKIA to regain its glory have not resulted in any positive outcome

Change management Approach

NOKIA has realized the issue of warranting need for change and has ensured that it had a strategic
tie-up with other technology giant Microsoft, and started its foray in to smart phone segment and the
touch mobile segment. However, this organizational change management has to be carried out
effectively, engaging the stakeholder communication effectively. The primary reason why NOKIA
despite of its entry in to the smartphone segment could not make an impact is that the internal
communication systems, the issues pertaining to organizational culture, human resource
management, the dwindling confidence of the employees on the organization due to the down trend
which the company is facing during the uptrend market scenario.

, it is very essential that the management should have adapted a phased restructuring and also
engaging the key stakeholders of the organization in to the task of restructuring and the
transformation process which the company is aiming at.
In overall there are various reasons like ignoring the expectations of the customers, not considering
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.

3.0 hurdles face while

managing chnage in NOKIA
Stakeholder engagement is very important and essential for the organizations when the companies
plan their transformation from one stage or state to the other. During such critical process of
transformation, the role of stakeholders like the employees, the change management team, the
leadership team of the organization, the consultants and the industry experts who are supporting the
process of change management, other external and internal stakeholders of the organization should
be sharing a common vision in terms of the objective for change management.

But the crux is that in the case context of NOKIA and its change management, the organization has
ignored the importance of being update on the customer expectations, estimating the technological
revolutions. It could be attributed to the poor work culture or communication management, that with
so many talented resources working in the company, still the company could not identify the issues
early and 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.

4.0 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 which is a recognized research and Development Company which focuses on the change
management issues have developed a framework based on the insights from various case inputs and
practical implementations of successful change management strategy. (Bourda, 2013)

In the case context of NOKIA and the emerging scenarios, the PROSCI framework approach if had
been adapted would have given a different kind of transformation to the organization. In the PROSCI
method, the emphasis on change management is on a three phased approach, where in the first phase
the company prepares for the change. (Bourda, 2013)
Despite the fact that NOKIA has made its approach towards the first phase of the change
management, only partial part of the phase has been successfully implemented. The key in the first
phase of transformation is the development of sponsorship which the companies have failed. This
could be due to many factors like the missing accountability and other internal issues. (Bourda, 2013)

The other stages of the PROSCI Model of managing the change have been very much ineffective in
the case of NOKIA. Had the change management team followed such an effective strategy and had a
detailed project charter and the implementation plans, the current level of issues might not have been
envisaged by the implementation team. (Bourda, 2013)

Keeping in view the current state of NOKIA it is evident that the step of reinforcing the change
which usually provides concrete outcome for the organizations has not been considered in the change
management environment of the organization.

5.0 Conclusion
NOKIA which has been one of the leading players in the mobile industry has been very effective in
terms of releasing new models and designs that could attract the global markets. But over a period of
time when the companies are focusing on the changing trends and started working on new kind of
mobile product manufacturing, NOKIA had stick to its old pattern and the traditional mobile devices
and kept altering its target market. However when there was essential need to change, the
fundamentals of the change management has not been effectively chalked out by the company and
the attempts from the company to revive its existing scenario and get back to market positioning has
been a futile attempt as it lacked any concrete plan, approach and the stakeholder engagement. This
only emphasize the fact that for any organization, there could be the need for change management
and during such scenario it is very essential that they adapt the change management principles and
guidelines that could provide them a direction and the outcome from the entire process of change
management. (kel, 2012)