Nokia was the leader in the mobile phone industry and then almost went bankrupt, while the reasons are numerous there are lessons to be learned. In the book Transforming Nokia by Risto Siilasmaa published by McGraw Hill, NY, 2019, the author offers some views. Mr. Siilasmaa was Board Chair for a number of years
When a company is restructuring it is hard on everyone connected to the company. In some companies, the senior people are taken care of, Nokia went down a different path
The program was called Bridge based on 4 principles:
Nokia would accept our responsibility, rather than blame others or the market,
Nokia would actively lead rather than expecting government to step in
Nokia would involve all relevant parties as full partners.
Nokia would communicate openly.
Bridge offered 5 paths, or bridge, to a new life. Employees could opt to transition: to train for a new job at Nokia, study at a post secondary education, start your own business, find a job at another company, or do something different
Nokia contributed training, career counseling, equipment and $500 million in financial support.
The Bridge program resulted in 60% of employees knowing the next step when they left the company. It helped start 1,000 new companies and 18 months later a survey said 85% felt reasonable the way they were treated was good or very good.
Linking to dividend paying stocks, all companies strive to be successful employing people and they get attached to the company. Economies go through cycles and change, how you let people go also defined the culture of the company. Generally for the profit making companies more is expected, how did your investments do?
There are more questions than answers, till the next time – to raising questions.