Reviving Motorola - The Zander Way |
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EXCERPTS Contd...Focus on Customer NeedsZander noticed that in Motorola there was a lack of responsiveness to customers. He tried to spruce up the commitment levels. He said, "If the phone rings on this floor, I want it answered in two rings. We have responsiveness problems. I want everybody to start waking up and saying, Who do I serve? I want them to be very externally focused and be able to measure and hold people accountable... Management Reshuffle
Restructuring EffortsZander initiated a restructuring exercise by trying to reestablish Motorola as a unified technology company In July 2004, Zander announced that "Motorola's DNA is too fragmented. A cultural change is needed to increase customer satisfaction, to re-invigorate the brand and to speed up product delivery." He spun-off the 50-year-old semiconductors division in December 2004. After this divestment, Motorola was left with five divisions which included phone handsets, base stations, walkie-talkies, automotive electronics, and broadband... Unleashing New Products
The Results
Under Zander, Motorola reported five consecutive quarters (between Q3 2004 and Q3 2005) of increasing profits. However, in the second quarter of 2004, Motorola posted a loss due to the spinning off of the chip unit. 2005 was expected to become one of the most profitable years in Motorola's history... According to industry analysts, in order to succeed in the global markets, Motorola needed to catch up with Nokia and keep ahead of its Korean rivals - Samsung and LG. Zander acknowledged that Nokia had entered emerging markets much before Motorola. In his opinion, the developing countries had huge potential... Exhibits
Exhibit I: Worldwide Mobile Sales Q3 2005 (Unit Sales)
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