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In January, a few years ago, cellphone giant Nokia Corp. threw itself off balance. The Finnish company had previously divided its cellphone business into three groups based on market segments: consumer phones, feature-heavy smart phones, and business phones….
That mix of tension and collaboration is designed to “keep the organization awake,” says Kosonen, who recently authored a book on strategic agility with Yves Diz, a professor at the Instead business school in Fontainbleau, France. “The very things that make you great will kill you—unless you take the medicine to stay agile,” says Kosonen.
1. Why is dividing the cellphone unit into groups (developing phones and developing software and services) classified as a functional structure?
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2. How might this new organization structure take away a little from Nokia’s ability to satisfy customer needs?
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