July 2010

Nokia searching for new CEO to bring change

by Sheila Margolis on July 20, 2010

According to the WSJ, Nokia is searching for a new CEO to revive an organization that sells lots of cell phones but has been unable to compete in the high-​​end smartphone market. The WSJ says, “The company’s failure to get back in the race has taken a toll.” Selling in the mainly lower-​​end market limits profit margins. So what does the company do to push change…they search for a new CEO.

Leadership is a prime driver of change, and top leadership is the primary influencer of an organization’s culture. Thus, several things must be decided before looking for a new leader.

  • First, decide what is working with the culture and what needs to be changed. Is a new strategy with corresponding values what leadership must advocate or is the problem deeper? A clear assessment of the Core Culture and particularly the Purpose and distinctive and enduring Philosophy of Nokia must be assessed. What are they and can the organization survive sustaining that Purpose and those distinctive organizing principles that are the character of the company. Is a character change needed or a strategy change? Hopefully, it’s just a strategy change because the former requires a much more complex process of transformation.
  • Next, if the change is just a strategy change, be sure the new leader personally advocates and believes in the Purpose and Philosophy. If that leader sees the organization in a new way, changes may be made that were not intended.

Selecting new leadership is a delicate process. But first understand what must be sustained and what needs to alter. Then, choose the leader that will take the organization in the right direction rather than destroying those attributes that matter most to employees and the customers who identify with it.

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Selling the Sage brand through a united culture

by Sheila Margolis on July 20, 2010

Sage is a global software business, but with so many acquisitions, it has lacked a united culture. As Mary Welch reports in the July 18th issue of the Atlanta Journal Constitution, the company “is redefining itself as an entity greater than its parts.”

To retain the success of acquisitions, organizations tend to leave them alone for awhile to avoid disrupting their productive operations. But now for Sage, building a global brand will require some disruption in order to build a united culture. There are real benefits to collaborating across acquisitions and business units. A company often starts with a re-​​branding effort to  jump start the process, but that’s just an image adjustment. Real synergies and prosperity will only be derived from an internal process of building a united culture.

Including the people of all acquisitions–the entire organization–in defining the Sage culture that all will share may be the formula for uniting employees and making the brand a seamless and customer-​​focused solution for those they seek to serve. The process of building a united culture is much more than a re-​​branding effort. It is an internal process to define, shape and manage organizational culture. By building this shared foundation, a united effort can be realized.

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