Live and Learn

Mistakes can and will occur in business; therefore management should learn, grow and implement change in the organization when these problems arise. In the case of Ericsson, the management team did not respond fast enough after the destruction of the semiconductor plant. They were too sure the company would recover without any problems, there was no sense of urgency to resolve the problem which put the companies reputation in jeopardy. The way management responds in a crisis, whether large or small, is important to the success of the company; which Ericsson found out the hard way.

The company that did have everything under control was Nokia. Nokia’s management team jumped on the issue at hand and attempted to deal with the situation immediately. They communicated with all levels of the company, the destruction the semiconductor plant impacted. I felt the success Nokia experience was due to their good communication skills; which is what Ericsson seemed to be lacking.

The mission statement from the new CEO in 2003 was presented as follows: “The overall objective for the management team is to create a strong and profitable company with focus on technology leadership, high internal efficiency and strong customer relations.” Do you think the internal efficiency part was thrown in due to the way the management team handled the situation in 2001?

http://www.crm2day.com/news/crm/EpuAlZpVupYkliwgyo.php

http://www.nokia.com/