Managing Change- Addressing Stakeholder Concerns Through Effective Communication

Managing Change- Addressing Stakeholder Concerns Through Effective Communication

The changes instituted at Nokia in 2021 involved different stakeholders. The strategic change influences employees and product distributors directly. A shift in strategy, in Nokia’s case, was expected to enhance the company’s position in the market as well as performance while enabling the creation of long-term value. Secondly, clients as a stakeholder group would benefit significantly from the changes. Nokia hopes to improve its ability to meet its clients’ needs at an affordable rate (Nokia, 2020). Finally, shareholders would also benefit from the planned changes as the company considers shareholder value with capital returns an important business metric.

The three stakeholder groups may have different concerns during this process of change. First, employees would like to know about the benefits they stand to gain from the proposed changes. In addition, the challenges they are expected to face as the recent changes are implemented is a legitimate concern. Most importantly, as drivers of change, employees may want to understand their roles and the level of engagement that the management intends to establish during the change process.

Clients may be concerned about the quality of products that the company will produce under the new strategy, which affects the model of operation and leadership. These changes may influence production positively or negatively depending on Nokia’s keenness in the process. Shareholders will be concerned about the increase in revenue and the company’s ability to sustain this change while retaining quality standards. The ability to retain these standards ensures that shareholders receive a constant rate of dividends.

To communicate these issues to the stakeholders, it is important to hold meetings that allow interactions and discussions to take place. In addition, the clients can be easily reached using newsletters (electronic or hard copy). When the need arises, a meeting can also be held to ensure all stakeholders understand and embrace the change process (NCVO, 2020).

References

NCVO. (2020). Involving stakeholders in change.

Nokia. (2020). Nokia announced the first phase of its new strategy, which included changes to the operating model and Group Leadership Team. Retrieved from Nokia: https://www.nokia.com/about-us/news/releases/2020/10/29/nokia-announces-first-phase-of-its-new-strategy-changes-to-operating-model-and-group-leadership-team/

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Think of a change in a company with which you are familiar.

Respond to the following in a minimum of 175 words:

Who were the stakeholders involved in this change?
Discuss what concerns different stakeholders might have and how communication is needed to address those concerns.