Nokia CEO calls for national change strategy for Finland

Kallasvuo sees protectionism as most serious threat to economy

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Nokia’s CEO Olli-Pekka Kallasvuo says that Finland needs a national change strategy.
      “A change is needed. It needs to be promoted actively, and should not simply be adapted to”, he said at an economic policy seminar organised by the Finnish Confederation of Professionals (STTK) in Helsinki on Tuesday.
     
Kallasvuo compared Finland’s situation with the competitive situation of his company. Nokia is making efforts to transform itself from a manufacturer of devices into a provider of services and solutions at a time in which the whole field is experiencing “its biggest change in two decades”.
      Nokia’s starting point is that efficiency, speed, and a desire for experimentation will strengthen the company’s competitiveness, Kallasvuo said. In his view, it is about the way to do work, and not succumbing to uncertainty and pain.
      Kallasvuo feels that Finland as a nation needs to expose itself to change, just as Nokia has.
      “The attitude of ‘this is how we’ve always done it’ does not work. We must think if things can be done differently ina way that benefits Finland.”
     
Kallasvuo predicted that world economic growth in would get on the move slowly, now that the bottom level is being reached. “The reset button has been pushed in the world economy. Growth will start gradually from the new, lower basic level.”
      He sees protectionism as the greatest threat to healthy growth.
      “Finland should openly oppose protectionism on international fora.”
      Kallasvuo sees Europe’s position in the squeeze between the United States and Asia as “relatively worrying”. He expects that history will again show that the United States will adapt quickly to changes in the economy.
      China and India are continuing their strong growth in any case. For Europe to manage, it must increase changes in its structures, Kallasvuo said.
      “Fine tuning is not enough.”
     
At the beginning of his presentation Kallasvuo commented on the title of the speech that would follow his - The End of Globalisation?. He recalled the time when he started work at Nokia in 1980.
      “At that time we had a separate director of international trade. Now international trade accounts for about 99 per cent of sales. A position like that would be impossible.”
      In Kallasvuo’s view, Nokia is an exceptionally global company, even by international comparison.
      It gets its income from more than 180 countries. The company has 120,000 employees around the world, and in Finland alone, there are citizens of 93 different countries working at Nokia. Only 14 per cent of the shares of the company are in Finnish hands. A large international player is also followed closely in different countries.
     
Because of its international nature, equality, humility in the face of different cultures, and good corporate citizenship are essential values for the company, Kallasvuo insisted.
      “We are constantly under the magnifying glass. In addition to being a necessity, values are a competitive advantage.”
      As Kallasvuo sees it, globalisation as a phenomenon is neither good nor bad. “The question is, what kinds of principles are used in doing things. I believe that ecologically sustainable and socially responsible business activities are the most productive in the long run.”


Previously in HS International Edition:
  Nokia and Microsoft to form global alliance on software and services to Nokia smartphones (13.8.2009)
  More than a million use new Nokia mobile e-mail service (12.8.2009)
  No end in sight to Nokiás woes in North America (11.8.2009)
  Nokia and Intel to develop new products (24.6.2009)

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