Former Chairman of Nokia, Risto Siilasma, once wrote 'Transforming Nokia: The power of paranoid optimism to lead through colossal change'. The book discusses the behind-the-scenes story of the dimming of Nokia mobile phones, including who is considered the most 'sinner'.
Risto blamed the previous CEO of Nokia, Jorma Ollila, as one of the main causes of Nokia's decline. He wrote Jorma was temperamental and spread fear in Nokia, so there was no open discussion and often covered up if there was bad news.
Risto said that he had actually asked Nokia to use the Android OS in 2009 as a replacement for Symbian, which was getting worse and worse. However, his suggestion was never heeded, especially by Jorma.
In 2013, following the collapse of Nokia's mobile phone business, Risto, who has become Nokia's chairman, announced plans to sell Nokia's mobile division to Microsoft, but Jorma did not accept it. "Our conversations are always the same pattern, I tried to be friendly, he exploded and said I would ruin his legacy," said Risto.
Jorma himself was the CEO of Nokia at its peak, from 1992 to 2006. He then became Chairman until 2012. The position as CEO was then held by Olli-Pekka Kallasvuo, who was considered less than bright. So, Nokia is getting depressed.
Nokia CEO who took office in 2010, Stephen Elop, who was chosen by Jorma to execute the use of Windows Phone. But that strategy failed so slowly but surely, Nokia was abandoned by consumers and sold to Microsoft in 2014.
Actually, the Symbian OS had brought Nokia to the top, but it was disturbed by iOS and then Android. Risto revealed that Nokia's management was aware of the obsolescence of Symbian, but rarely discussed it. "I understand there was a big problem at Nokia at that time," said Risto.
Nokia is still reaping the benefits of a row of Symbian phones. But in 2009, it was clear that the iPhone had revolutionized the smartphone industry with its innovative touch screen. Then Google introduced the Android operating system.
Nokia is behind. Symbian is trying to be fixed, but still not good enough. Risto also wants management to act immediately. He suggested that Nokia change and analyze what if Nokia tested using Android only.
The plan will serve as a backup in case another Nokia software project fails. Android can be a savior. At that time, Android was not yet huge, so it was only natural that Nokia had to be careful if you wanted to use it.
But Jorma Ollila, whom Risto considers most responsible for the fall of the Nokia mobile phone business, did not heed Risto's suggestion. Apparently, Jorma did not want to admit that Symbian was behind and lost fans.
That is, history records that Nokia finally made a choice on Windows Phone which was executed by CEO Stephen Elop in 2010. Unfortunately, this choice overturned Nokia, which was once the phone of a million people.
Risto in his book tells that Nokia was actually serious about developing the MeeGo operating system which is expected to replace Symbian. But the OS did not satisfy the results so Nokia had to choose, using Android or Windows Phone.
However, Google is not interested in working specifically with Nokia while Microsoft as the owner of Windows Phone promises to provide full support. "The board of directors has a collective view that Google is not a good choice," said Risto.
Finally Nokia chose Windows Phone because Microsoft promised all-out help Nokia. Risto admitted that at that time, he also supported the decision even though he ultimately regretted it. Moreover, he once suggested that Nokia only use Android.
In 2012, Risto replaced Jorma Ollila as Chairman of Nokia. Nokia's mobile phone business with Microsoft did not meet the sales target and Nokia suffered a huge loss. Inevitably, various alternatives were considered, including selling the Nokia mobile phone division.
Microsoft CEO at the time, Steve Ballmer, invited Risto to meet in Barcelona. Ballmer revealed Microsoft's strong desire to buy Nokia's mobile division. Risto said that Microsoft was also considering the acquisition of HTC, a mobile phone vendor from Taiwan.
The negotiations were long and tough. Nokia's mobile division is bleeding and Microsoft is offering an acquisition price of only 4.25 billion to 5.25 billion euros. In September 2013, they finally agreed on a price of 5.44 billion euros.
Microsoft had high expectations when buying this Nokia mobile division. But in the end, they still failed in the mobile phone business until they finally gave up. Nokia's mobile phone production is now controlled by a new Finnish company called HMD Global.
Despite telling the bad news about Jorma, the person Risto considered the most responsible for the downfall of Nokia, this book is not meant to trigger conflict, but rather a lesson. "I hope our employees will read this book, so that we don't make the same mistakes again. The lesson in this book is about positive things," said Risto.
Risto once stated, if a company is so big and can fall so badly like Nokia, there must be something wrong with its management. "If a company is the largest in the world, with a lot of money and huge investments in research and development and loses to competitors, the only explanation is that there is a problem with its management," he said.
Jorma did bring Nokia to its peak of glory, especially when he was CEO from 1992 to 2006. But under his control also Nokia fell because they did not see a threat to Symbian and did not want to be criticized.
"Jorma ties his identity to the company's success so strongly that all criticism is considered a personal matter. That's why he defends so aggressively. Discussions about new alternatives or new problems are very difficult, if not impossible," he said.
Nokia CEO, Stephen Elop, who executed the use of Windows Phone so far is indeed considered the main suspect in the fall of Nokia. However, for Risto, Jorma's sin, who is in the top management position as Chairman, is no less big.