James’ definition of Operations Management is demonstrated in the “Burning Platform” memorandum. James states that “Operations Management is about the management of the processes that produce or deliver goods and services.” (James, 2011) It is precisely the management of the processes that produce and deliver Nokia cell phones that the “Burning Platform” addresses and criticizes. Nokia’s CEO argues that the processes used to produce Nokia’s products are outdated. For instance, he compares the production of Nokia’s cell phones to a Chinese brand of cell phone and illustrates how quickly their competitor’s factories can produce a mass quantity of cell phones, in comparison to Nokia’s factories. Hence, because their competitor can produce their product so quickly, this also impacts the speed of delivery since they have a plethora of products that are ready to ship. Nokia’s CEO criticizes the lackluster processes that Nokia currently utilized in the production of their products, and he implored his employees to innovate in a way that improves these very processes.
I do see some of the five steps within Hill’s framework for Operations in the “Burning Platform” memorandum, though none of the steps are fully explored in detail. The memo does a great job of pointing out that the company is in trouble, but it does not provide a clear and specific route out of their current predicament. The memo does identify corporate objectives, and that is, in short, to sell more phones. Along these lines, the CEO indicates that more innovation is needed. He does provide the example of the competitor who has built a more streamlined factory that produces more units, which may have helped with the production of less expensive phones in the developing world. However, it seems to me that even more important than the speed of production is innovating the phones to make them more competitive. Even if they could produce a large number of phones efficiently, this will be of no help to the company unless the phones are appealing to consumers. One of the main steps that were missing in the memo is step number 2, “Determine marketing strategies to meet these objectives” (James, 2011). While the CEO makes it clear that innovation will need to be made both in the quality of the product and the marketing of the product, there is not a clear marketing path outlined that lays out specific steps that could be taken to improve Nokia’s current marketing strategies. The memorandum makes it clear that changes must be made, and yet it does not provide a clear path to achieving these necessary changes.
The internal factors that I observe are a company who has had some success but has not been able to stay on top of the changes in an evolving market. They have remained relatively stagnant in a market that requires growth and change to stay relevant. The external factors I observe are ways in which Nokia’s competitors have used innovation to take a good product like cell phones and make them better. Nokia fell asleep while its competitors were building and then improving upon smartphones, and because they did not have the drive and the foresight of competitors like Apple and Samsung to create better versions of their products, they find themselves on a burning platform.
The violent imagery the CEO employs has both its pros and its cons. The pro is that this sort of language can be motivating. When employees come to see the analogy of their dying company to physical death and the rivalry with their competitors of war, this can bring them to take the position of their company more seriously. However, this approach can also be off-putting and can ultimately backfire. One example that comes to mind would be for military veterans who are employed by Nokia. I once had a conversation with a veteran in which he said one of the most difficult aspects of readjusting to civilian life after returning from a war zone was how difficult it was to relate to people who blew their relatively small problems out of proportion. Hence, if a veteran has been in the war and has seen his comrades and countrymen die as a result of evil and violence, it may be hard for him to take a memorandum seriously that has the audacity to compare a struggling business to a war zone. Similarly, the use of violent imagery can be distracting. When such violent images are brought to mind, it can make Nokia’s failure to keep up with its competitors seem trivial in comparison. Furthermore, some people are simply offended and put off by violent imagery. For these people, the use of this imagery will not be a motivation, but rather detractor from the issue at hand. A CEO must take into account the diversity and sensitivity of his workforce before making the decision to employ violent imagery.
References:
Edwards, J. (2013). Al Microsoft Employees Should Read Stephen Elop's 'Burning Platform' Memo Right Now. Business Insider. Retrieved from: http://www.businessinsider.com/stephen-elops-burning-platform-memo-2013-9
James, T. (2011). Operations Strategy. Bookboon
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