When Olli-Pekka Kallasvuo became CEO in 2006, Nokia was viewed as stodgy and slow to react to changes in the cell phone marketplace. What’s more, critics characterized its product lineup as “tired.” Kallasvuo told the press that despite Nokia’s dominant position in most of the world, it could not afford to be overconfident. The company, he said, needed to become flexible and responsive to customer needs and wants. Kallasvuo also spoke about the importance of humility as a trait in a manager—and a company. He defined a humble company as one that listens to its customers and uses the information in its planning—one whose management teams embrace diversity of opinion. Said Kallasvuo, management teams need to “resist the safe conformity of benchmarking” and embrace change. Kallasvuo also declared that he wanted to move Nokia to a management structure that would better reflect its global presence. Making these adjustments could be a tall order for a company that, in many respects, already seemed to be doing many things right. Field research has enabled Nokia to learn what consumers in developing economies want and need—for example, a built-in flashlight on the low-cost models Nokia sells in sub-Saharan Africa, where the power grid is often down or spotty. Through high-volume parts purchasing, Nokia has been able to manage unit costs well enough that its competitors can’t touch it in the low-end market. Kallasvuo also issued an edict regarding product development: projects must be ready in months, not years.

• Olli-Pekka Kallasvuo says, as a CEO, he can accomplish very little on his own. However, with the Nokia workforce numbering about 100,000, he says there’s much that can be accomplished with teams. Do you agree? How does teamwork relate to strategic planning? 

• When Google announced it was pioneering software technology to bring Internet capability to cell phones, Nokia’s first reaction was that Google did not represent a threat. What do you think of this analysis?