by Sheila Margolis on October 13, 2010
D.C. Public Schools Chancellor Michelle Rhee resigned today. Rhee, a champion of school reform, tried to make a difference in the school system by introducing major change. In an NPR interview today, Rhee stated that she sought change but did not communicate effectively with all groups in the process of change.
Yes, communication is key to any change effort. Communication reduces uncertainty and promotes participation in decision-making: two key elements for making change really work without tearing things apart. All groups–including the teachers and the community–needed to feel like they were a part of making change happen–rather than having change done to them. Sometimes in one’s efforts to move mountains, one can forget that the mountains have to know they’re going to move and want to actually make the move. Communication–two-way–can help in the process. People want to be a part of change that is affecting them, and they want to be informed and able to contribute their views along the way.
Rhee is a dynamic leader who has learned lessons that she will take with her in her next mission. She has the right stuff; she just has to do it the right way so others are in there with her to make it happen.
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by Sheila Margolis on September 10, 2010
The new President and Chief Executive of Nokia, effective September 21, is Stephen Elop–the former head of Microsoft’s Business Division (his departure effective immediately). He has previously held the following positions: COO of Juniper Networks (one year and one month); President, WWFO of Adobe Systems (one year and one month); CEO and other positions at Macromedia (7 years, 10 months); CIO of Boston Chicken (6 years); and CIO of Boston Chicken and Einstein Brothers Bagels (3 years).
Elop will lead an organization that has experienced significant change in its history. Nokia began as a paper mill in southern Finland in 1865; the second mill was located on the Nokianvirta River–hence, the name “Nokia.” The founder Fredrik Idestam is considered the father of Finland’s paper industry, according to the company website. The early history of Nokia focused on paper and electricity generation–not communications technology. The move to mobile didn’t begin until the late 1960s.
With a solid Finish connection and culture, Nokia has now chosen a Canadian citizen for its top position. With Nokia’s clearly stated Purpose–Connecting People–Elop will have the challenge to improve company profits and position and lead in finding new and better ways for connecting people. So what will change and how quickly and what does this mean to the culture of Nokia and its future?
Taking a leader from the outside–obviously indicates change. But choosing a leader outside the Finnish culture indicates an added complexity. Two levels of culture must be considered: first is the country culture. How does the Finnish culture differ from Elop’s background? He won’t be changing the country culture. And how in sync or out of sync is the current Nokia culture with the principles and values of Elop? It’s a positive statement that he plans to listen and learn about the company and its culture. But from a culture perspective, one would hope that he already has a good sense of the organizational culture. One would hope that the selection process focused on sharing the core Philosophy principles that are rooted in the company’s history and shared by employees. And surely the selection process discussed the need for strategy change which will directly impact the Priorities that all employees must share.
With Elop’s software experience and North American connections, Nokia may feel a new momentum that will bring change. Obviously, change is needed; the concerns that employees will focus on is what will change and how will the change impact “me.”
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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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