Let us analyze the “Burning Platform” memorandum?

The burning platform was addressed to Nokia employees by then CEO Stephen Elop.  As James has said that operation management helps manage the transformation of an organizations input into finished goods and services. Usually, these happen following certain processes.

We can definitely recognize one transforming resource – that is the employees, who used to work for Nokia and who received this memo from their CEO. When the CEO was referring Nokia to be a burning platform, he was basically telling the employees that it is time to change and take a leap, basically, the message was transformed or die. Here in this context, the message meant if Nokia does not change it is dying a painful death. That means the employees will lose their jobs.

And another element we could recognize was the final product. The CEO was giving a message and how the competition has does so well by creating an ecosystem. So the transformed product, which is the cellphone hardware in this context, was also being referred.

Hill (2005) provided an iterative framework that provided organizational direction, the marketing strategy, it defines how the organization may choose and the operations strategy to compete in the marketplace. It is a 5 step strategy as we read –

1.     Define Corporate Objective

2.     Define Marketing strategies to meet the defined corporate objectives

3.     Evaluating different products against competitors

4.     Establishing the mode of delivery for the products

5.     Provide required infrastructure to support operations

The memo from Stephen Elop has identified all the challenges Nokia was facing and how competitors were dominating the marketplace. We see the corporate objective to turn around the company from where it was. There is a hint in the memo that on 11^th February they were going to reveal the strategy, but it was not elaborated.  Other than the corporate objective I did not see anything else from Hills framework(Edwards,2013).

We did not see any marketing strategy or evaluating different products, although we saw Elop was not happy with the pace of innovation in Nokia, he thought Nokia is not bringing products fast enough to the market.

We do not see any mention of mode of delivery for the products, but I would assume, Nokia already had a process for that. And we do not see any mention of infrastructure required to support the operation, but I would assume maybe Nokia already had that or would decide on that after the strategy comes out.

Stephen Elop in his memo has elaborated why and how Nokia lost in competition to Apple, Android devices and cheap phone manufacturers. While he identified competitors’ products from high-end expensive apple phones to low-end cheap smartphones, those are mostly external factors.

Elop pointed out how Nokia could not evolve or could not come out with new products to compete with competitors. He mentions how Nokia could not innovate or could not realize a phone is about ecosystem now. These factors are all internal.

I personally feel Elop was right to use violent imagery since Nokia was in a dire situation when Elop sent this email. He chose not to sugarcoat and let employees, who are also stakeholder, know what situation they are in. Now, thinking about pros, I can see how a loyal employee would see opportunity in the situation. The problems were identified, the strategy was being formulated and Nokia had to nowhere else to go but to change itself for better.

In cons, I think employees might panic and think they would the job or they will not get a raise or promotion, so they may leave.

I would personally feel motivated, since, the CEO is cognizant of the challenges and he is honest with the employees. So, I will feel inspired, because according to me this memo came along with a plan to turn the company around which was burning platform anyway, anyone not seeing that, maybe was on denial mode.

I do not see a high probability of backfiring. Elop must have consulted with higher management before sending the memo out, and this memo did not say that Nokia is going to crash and burn, instead the CEO has pointed out the problems and assured employees that there is a solution now. I believe most employees will see that and stick around.

References:

Hill, T(2005), Operations Management, 2^nd Edition, Palgrave Macmillan, Basingstoke

Edwards, J(Sep 3,2013). All Microsoft Employees Should Read Stephen Elop's 'Burning Platform' Memo Right Now. Retrieved from https://www.businessinsider.com/stephen-elops-burning-platform-memo-2013-9