James defines Operations Management as being, "...about the management of the processes that produce or deliver goods and services." (2011, p. 8) Stephen Elop addresses most of the processes within Nokia, from Innovation (too little, too late), to Product Development (too slow, and falling behind), to Production (the Chinese are producing devices faster than Nokia can "polish a PowerPoint presentation.", to the decline in its credit rating, which will negatively affect its ability to finance operations. (Edwards, 2013)
James cites Hill's Framework as consisting of these files steps:
Define corporate objectives
Determine marketing strategies to meet these objectives
Assess how different products win orders against competitors
Establish the most appropriate mode to deliver these sets of products
Provide the infrastructure required to support operations (2011, p. 11)
I believe that Elop touches on all of these points in his memo.
Relating to corporate objectives, Elop recounts how their focus was disjointed. Nokia had ceded the high-end market to Apple, their mid-market product, Symbian, failed to catch on and allowed the Android platform to capture that segment. At the low end, the Chines OEMs were dominating. While Nokia was focusing on devices, the market moved on to ecosystems. Elop observed, "The battle of devices has now become a war of ecosystems, ... Our competitors aren't taking our market share with devices; they are taking our market share with an entire ecosystem." (Edwards, 2013)
He then challenges his employees to make proper decisions to address these threats.
In his summary, I believe that it is clear that Elop gave great consideration as to how Nokia's competitors were able to claim their victories in their various segments, including how they were so effective in delivering their products and services in comparison to Nokia.
Finally, Elop challenges his employees to rethink everything as they work to rebuild their market leadership. While I don't believe that he said so in the memo, I get the sense that everything was open for a redesign, including the company infrastructure to support operations.
Elop spares no one, internally. He lists all levels of Management, including Innovation, Product Development, and I believe he implies Operations, too, by his remark about the Chinese OEMs.
The external factors that Elop recognizes are the general market, his Customers, his competition, and financiers.
I believe that the use of violent imagery was an appropriate one, given the seriousness of the immanent threat. People needed to be shaken from their slumber if the company was going to have any chance at overcoming the challenge.
I like the burning platform analogy. I believe that it motivates one to action. I believe that it motivates committed people to firefighting or rescue tasks. On the other hand, it motivates the uncommitted to "jump ship." At that point, Elop needed to identify who was whom in order to save the "rig." He needed to know who was with him and needed to jettison the ones that were not.
The effort could certainly backfire, if too many employees jumped, or if the other stakeholders saw this as a sign that the business was beyond saving. But, at that time, the business was in serious trouble, anyway. Therefore, it is my view that risk was work taking.
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.com.
James cites Hill's Framework as consisting of these files steps:
Define corporate objectives
Determine marketing strategies to meet these objectives
Assess how different products win orders against competitors
Establish the most appropriate mode to deliver these sets of products
Provide the infrastructure required to support operations (2011, p. 11)
I believe that Elop touches on all of these points in his memo.
Relating to corporate objectives, Elop recounts how their focus was disjointed. Nokia had ceded the high-end market to Apple, their mid-market product, Symbian, failed to catch on and allowed the Android platform to capture that segment. At the low end, the Chines OEMs were dominating. While Nokia was focusing on devices, the market moved on to ecosystems. Elop observed, "The battle of devices has now become a war of ecosystems, ... Our competitors aren't taking our market share with devices; they are taking our market share with an entire ecosystem." (Edwards, 2013)
He then challenges his employees to make proper decisions to address these threats.
In his summary, I believe that it is clear that Elop gave great consideration as to how Nokia's competitors were able to claim their victories in their various segments, including how they were so effective in delivering their products and services in comparison to Nokia.
Finally, Elop challenges his employees to rethink everything as they work to rebuild their market leadership. While I don't believe that he said so in the memo, I get the sense that everything was open for a redesign, including the company infrastructure to support operations.
Elop spares no one, internally. He lists all levels of Management, including Innovation, Product Development, and I believe he implies Operations, too, by his remark about the Chinese OEMs.
The external factors that Elop recognizes are the general market, his Customers, his competition, and financiers.
I believe that the use of violent imagery was an appropriate one, given the seriousness of the immanent threat. People needed to be shaken from their slumber if the company was going to have any chance at overcoming the challenge.
I like the burning platform analogy. I believe that it motivates one to action. I believe that it motivates committed people to firefighting or rescue tasks. On the other hand, it motivates the uncommitted to "jump ship." At that point, Elop needed to identify who was whom in order to save the "rig." He needed to know who was with him and needed to jettison the ones that were not.
The effort could certainly backfire, if too many employees jumped, or if the other stakeholders saw this as a sign that the business was beyond saving. But, at that time, the business was in serious trouble, anyway. Therefore, it is my view that risk was work taking.
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.com.
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