The Impact of Effective Leadership NOKIA & SAMSUNG

ByMOUMITA ROYDEPARTMENT

POST GRADUATE DIPLOMA IN

HUMAN RESOURSE MANAGEMENTUNDER

Prof. Ajay BharCOURSE COORDINATOR ASHIS MITRA

COMPANYNOKIA

&SAMSUNG

LEADERSHIP IS THE ART

OF GETTIN

G SOMEONE

ELSE TO DO SOMETHING

YOU

WANT

DONE

BECAUSE HE WANTS TO

DO IT.

What is leadership? It is a process by which one person influences the thoughts, attitudes, and behaviors of others.

Taking a leadership position means

•Creating a vision, a mission, and a strategy.•Communicating the vision/mission/strategy and getting buy-in.•Motivating others.•Helping an organization to grow, evolve, and adapt to changing circumstances.•Making a commitment to the mission and to the people you lead.•Assuming risk of loss and failure.•Accepting recognition for both success & failure.

The Impact of Leadership Effectiveness on Business & its Results

Nokia and Samsung are two such successful manufacturers who enjoy immense popularity in the market today.

OBJECTIVE of this project

.

The effectiveness of leadership behind this two successful company and their strategy to run the business successfully.

Type(Public)

IndustryTelecommunications equipment

InternetComputer software

FoundedTampere, Grand Duchy of Finland (1865)

incorporated in Nokia (1871)

Founder(s)Fredrik Idestam

Leo MechelinHeadquarters Helsinki, FinlandArea served Worldwide

Key peopleRisto Siilasmaa (Chairman)

Stephen Elop (President & CEO)

Products

Mobile phones

Smartphones

Mobile computers

Networks

Revenue €30.176 billion (2012)

Employees 97,798 (2012)

Type Business unit

Industry Telecommunications

Founded Seoul, South Korea (1977)

Headquarters Suwon, South Korea

Key people Geesung Choi, President

Products

Mobile phonesSmart phones

Telecommunication SystemsMP3 Players

Laptop computers

Revenue 21 Billion USD (2007)

Net income $ 2.3 Billion USD (2007)

Parent Samsung Electronics

Website Samsung consumer

the Nokia Leadership Team•Chairman Stephen Elop•Marko Ahtisaari

•Michael Halbherr•Jo Harlow•Timo Ihamuotila

•Louise Pentland•Juha Putkiranta•Henry Tirri•Timo Toikkanen•Chris Weber•Juha Äkräs

•Dr. Kai Öistämö

Samsung Tries On Triple-Crown Leadership for SizeSAMSUNG LEADERSHIP TEAMB D PARKDr. OH HYUN KWONYANGKYU KIMDALE SOHNCHARLIE BAEDr. WOOSUNG HANToo Many HeadsWhat the company needs is a strong leader who can bring all aspect of the business together into a single vision.

Steps Taken By ELOP•Nokia had to undergo a substantial programme of change.•Elop announced a strategic partnership with Microsoft in March 2011

•Elop has refocused the business on leadership and markets•Decision-making has been delegated to local/national teams

•Goals and incentives for the senior leadership team are now more transparent.•Job cuts amount to a fifth of the total employees remaining at Nokia.•By June 2012, Nokia had lost more than $88bn in market value since Apple introduced the iPhone in 2007.

TARGET OF Elop

•Build a new winning mobile ecosystem in partnership with Microsoft.•Bring the next billion online in developing growth markets.•Invest in next-generation disruptive technologies.•Increase their focus on speed, results and accountability.

BUSINESS PRINCIPLES FOLLOWED BY SAMSUNG LEADERS

NOKIA’S DRIVING ForcesStephen Elop, Nokia President and CEO can see fresh opportunity for them to innovate, to differentiate, to build great mobile products, like never before, and at a speed that will surpass what they have accomplished in the past.

SAMSUNG’S DRIVING forcesSamsung Chairman Lee’s relentless dissatisfaction and discipline are Samsung’s driving forces.

THE NEED FOR CHANGE

• New management or leadership•Market changes (growth, competitors) •Political & legal environment •New business ownership•Economic conditions

WHY DID NOKIA FAIL?•Nokia had missed the major change in its market - the Smartphone revolution.•Nokia had continued to focus on mobile phone devices (hardware) rather than mobile phone applications (software).•The life cycle of Nokia’s products had shortened dramatically as others (Apple, Google Android) developed Smartphone platforms and an associated “ecosystem” of apps. •Nokia has faced intense competition from mobile phone producers in emerging markets.• Many in Nokia regret that the business had become too product-led rather than customer-led; a missed opportunity.

•Poor leadership and complacency (bred from success in non smart-phones).•The wrong culture over-consensual.•Nokia had become “clogged with bureaucracy”.• Decisions being made within the firm were often cancelling each other out!• A series of committees, boards and cross-functional meetings held-up decisions.

Samsung grab Nokia’s MarketWithout any doubt, Samsung grabbed in a very short period significant market share in the mobile industry.

Barriers

Traditional and set ways of doing things

Fear

Loyalty to existing relationships

Failure to accept the need for change

InsecurityPreference for  the

existing arrangementsDifferent person

ambitions

Loss of powerLoss of skills

Loss of incomeThe unknown

Inability to perform as well in the new situationBreak up of work groups

BARRIERS FOR NEW LEADERS

Challenges for Leadership

Steps taken by NOKIAThe new model of leadership incorporates four different values:

•Developing the vision •Sharing goals •Gaining support •Delivering success

Results

•The implementation of these new strategic models has led to some positive outcomes for Nokia and its individual employees. •It has encouraged managers to achieve employee ‘engagement’, which contributes to the making of the ‘True Nokia Leader’ model.•Coaching also contributed to the personal development of the individual, resulting in visible improved self awareness, satisfaction and personal motivation. •Most of all, the acknowledgment of the new ‘Nokia way’ has helped establish a common framework of communication and promotion of the freedom to lead

HOW TO MAKE Leadership effective ?•Managing the effective planning for the potential redeployment, relocation and release of staff. •Scheduling change. •Ensuring effective transition of individual business units to a new structure. •Engaging with impacted staff to involve them in the process of transition. •Managing effective two-way communication with all stakeholders during the change. •Embedding the cultural change and ways of working associated with a shift.

CONCLUSIONTop 10 Qualities -----------------1.HONESTY2.ABILITY TO DELEGATE3.COMMUNICATION4.SENSE OF HUMOR5.CONFIDENCE6.COMMITMENT7.POSITIVE ATTITUDE8.CREATIVITY9.INTUITION10.ABILITY TO INSPIRE