Nokia

Nokia, the world leader in mobile communications, has over 50,000 employees and the net sales of USD
30 billion. Nokia consists of two business groups: Nokia Networks and Nokia Mobile Phones. The
company also includes separate Nokia Ventures Organization and the Corporate Research Unit, Nokia
Research Centre. Nokia’s business strategy is to strengthen the company’s position as the leading
communications and systems provider. Nokia wants to create personalized communication technology
that helps people to create their own mobile world. Nokia continues to target and enter segments of the
communications market that the company believes will experience faster growth than the industry as a
whole. As the demand for wireless access to services increases, Nokia plans to lead the development
and commercialization of networks and systems required to make wireless content more accessible and
rewarding for customers.

The management approach at Nokia, known as the ‘Nokia Way’, consists of Nokia Values, its
organizational competencies, and its operations and processes used to maintain operational efficiency.
The company has built its current and future strengths on the Nokia Way (NW). The NW has resulted in
a flat, networked company emphasizing speed and flexibility in decision making. The Nokia’s values
include customer satisfaction, respect for the individual and achievement, and continuous learning.
Continuous learning provides employees with the opportunity to develop themselves and stay
technologically current. Employees are encouraged to share experiences, take risks and learn together.
Continuous learning goes beyond formal training classes. At Nokia, continuous learning means that
employees support each others’ growth, developing and improving relationships through the exchange
and development of ideas. E-learning is used to provide employees with the freedom to choose the best
possible time and place for personal development.

Nokia’s top management is committed to continuous learning. For example, the business group
presidents are the ‘owners’ of all global management and leadership programs for senior managers.
They not only personally provide input into the development of these programs but they also appoint
‘godfathers’ from their management teams. These godfathers participate actively throughout the
program and are also designers of program content. Together with the training and development staff,
the godfathers help the learning processes in the programs. Most of the programs involve strategic
projects (action learning) that participants are responsible for completing. Top managers invest time in
reviewing the projects and have the authority to take action based on project team recommendations.

The value of continuous learning translates into personal and professional growth opportunities
including a commitment to self development, coaching, learning solutions and training, management
training, a vibrant internal job market and performance management. Employees are encouraged to
create their own development plan and use available learning opportunities, solutions and methods.
Coaching with highly skilled colleagues helps employees develop and give them the opportunity to share
ideas and goals with each other. Nokia employees have access to a wide variety of training and
development opportunities including ‘Learning Centers’ and ‘Learning Market Place Internet’, which has
information on all the available learning solutions including e-learning and classroom training. Through
the learning centers, Nokia has integrated the learning activities of all the business groups into one
place. Nokia believes that by mixing participants from across business groups, knowledge is created
because experiences and traditions can be shared between the employees. In addition, Nokia
emphasizes on-the-job learning through job rotation and through managers giving their employees
challenging new job assignments. There is also a wide range of opportunities for managers to improve
their management and leadership skills. The emphasis on internal job market encourages employees to
improve their skills by changing jobs. Nokia’s performance management process, known as ‘Investing in
People (IIP), involves twice yearly discussions between employees and their managers. The IIP process
consists of objective setting, coaching and achievement review, competence analysis, and personal
development plan. The entire IIP process is supported electronically. Employees can choose their profile
from the company intranet, conduct a self evaluation, create a personal development plan, and
investigate what learning solutions are available at the learning centers.

Nokia emphasizes that learning should result in improved operations and better business results.
Therefore, the company uses a combination of measures to evaluate the value of training. Nokia always
asks employees for their immediate reactions after they have completed a program. Other measures
include attainment of competence and resource strategy in all parts of the company. Top management
feels that the largest benefit of learning is that employees have opportunities to network, creating more
knowledge, reinforcing continuous learning and creating committed employees.

(Source: Based on the Nokia Corporation website, www.nokia.com, August 22, 2003; L Masalin, ‘Nokia
Leads Change through continuous Learning’, Alchemy of Management Learning and Education 2 (2003),
pp 68-72)

1. How are the terms ‘training’, learning’ and ‘development’ different? Please bring out examples
of each from the case.
2. Why is there more emphasis towards ‘learning’ rather than ‘training’ at Nokia?
3. Explain ‘class room training’, ‘e learning’, ‘on the job training’, ‘action learning’ and ‘continuous
learning’?
4. Describe significant ways in which Nokia encourages ‘development’ of managers and
employees.
5. Describe how the ‘learning’ or ‘training and development’ strategy supports the business and
corporate strategy at NOKIA.