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Strategic Leadership Plan
BlackBerry (BBRY) Strategic Leadership Plan
Anthony Anderson
Executive Summary
This purpose of this paper is to provide a Strategic Leadership Plan (SLP) delineating
viable solutions to organizational challenges facing BlackBerry (BBRY). Discussion will open
with a high-level overview of the organization that includes addressing the core organizational
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challenges currently facing the firm. Financial standing of BlackBerry will be analyzed relative
to the organizational challenges and its affect on the firm’s sustainability, profitability and
current growth efforts. Industry analysis will follow, focusing on the current competitive
landscape and industry trends, current industry position of BlackBerry, and analysis of
competitor’s reasons for current success in the industry relative to the firm. The SLP’s core focus
of strategy to overcome current organizational challenges will be delineated to provide insight
into leadership’s plan to correct current organizational decline. Following the strategy overview
will be leadership’s plan for managing the implementation of organizational change initiatives to
support successful strategy outcomes. SLP will then transition towards an explanation of the
leadership approach to be utilized to further enhance successful outcomes in support of
organizational change initiatives. Finally, the SLP will provide a description of actions in the
first ninety days of implementation that will provide the foundational elements for sustainable
success of the core strategy and organizational change initiatives for the firm.
BBRY: Corporate Overview
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Formation of BlackBerry occurred on March 7, 1984 under the auspices of the Business
Incorporations Act (Ontario) which realized the commencement of business for the firm
(BlackBerry, 2014). Founders Jim Balsillie and Mike Lazardis grew the company with
dedication to innovation and creating business communications for business people. Culmination
of their growth was achieved in 1999 with the introduction of the BlackBerry “Smartphone”
solution that realized rapid accession to global leadership in the wireless mobile
telecommunication industry (BlackBerry, 2014). Early success was witnessed in tremendous
growth in revenues from $85M (2000) to $6B in (2008) and a firm position of industry
leadership was achieved. However, the firm encountered a myriad of challenges and strategy
issues in recent years which greatly impacted profitability, sustainability and competitive
advantage culminating in swift organizational decline. Rapid decline has had a resultant effect
on current core business function focus and core capabilities in an effort to correct course.
Insight into multiple organizational elements and capabilities will provide more detail related to
current business and strategic foci that form foundational elements of organizational challenges
to address.
Core business functions of BlackBerry (BBRY), at the industry level, focus on the
research, design, manufacturing and sale of wireless communication products services and
software on a global scale (BlackBerry, 2014). Further defining the firm’s core business
functions is achieved through internal analysis. Internally, the firm defines four core business
functions as the primary foci: Device Business (Smartphone), Enterprise Services, QNX
Embedded Business and Messaging (BlackBerry Messenger), which serve as the basis for
current strategic growth objectives (BlackBerry, 2014). Core business functions, from the
internal perspective, provide the foundational elements that drive current management and
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leadership focus during this decline period. Additionally, these functions have been greatly
reduced relative to their high growth period in which core business functions ranged a much
broader scope.
Core competencies are the differentiating factors that provide companies with the source
of competitive advantage. BlackBerry maintains current industry level strengths directly related
to geographic presence, engineering prowess and R&D capabilities. Internally, the company
maintains more specific firm related core competencies that are deemed sources of current
competitive advantage by leadership. Five areas, listed below, delineate current firm
competencies serving as sources of competitive advantage:
1. Device and software security at the enterprise level,
2. Intellectual property rights on software,
3. Products delivering balance to IT and consumer environments,
4. Products allowing IT wireless accessibility to key corporate data stores and,
5. Strength of the BlackBerry brand name and market awareness (Blackberry, 2014).
Currently, these competencies serve as the primary internal sources that create profitability for
the firm. Consequently, these differentiators serve as primary sources of exploitation relative to
solving current organizational challenges facing the firm.
Core business functions and competencies play a critical role in the formation of
customer segments the company serves. Market segmentation of the firm provides insight into
the core customers BlackBerry serves within the market. Three distinct market segments,
General Consumer, Prosumer and Enterprise, produce the core customer base that drives
profitability. General Consumers utilize the devices for personal use while the Prosumer utilizes
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the device for dual functions of business and personal use. Enterprise users, or businesses
acquiring the device for employee use, make up the final segment. No individual consumer
segment represented a majority amount as it relates to financial impact for the company and is
equally important to the company’s strategies (BlackBerry, 2014). The firm has created a defined
market through application of functions and competencies to create the current core customers
who are intended to drive growth through the message and direction provided by the mission and
vision.
Past Blackberry leadership placed little effort in creating a strong mission for their
company to serve as the guiding message. Mission statements are intended to answer one basic
question of the intentions of the firm to win in their business area as well communicated guide to
employees and stakeholders (Welch, 2005). Blackberry does not post a public mission statement,
rather the following was found from its annual 10-k report: “A global leader in wireless
innovation, the Company revolutionized the mobile industry with the introduction of the
BlackBerry solution in 1999. Today, the Company aims to inspire the success of its millions of
customers around the world by continuously pushing the boundaries of mobile experiences”
(BlackBerry, 2014). Enacting positive change is predicated on the providing the employee base
with a direct, easily understood mission to direct their efforts. Enhancement of the mission will
have great impact on cultural changes in the organization.
Where mission is the blood that drives a company, its vision statement is what allows the
company to grow and expand its brand by determining what it wants to become in the market
and to the consumer. Hidden at the end of the mission statement BlackBerry alludes to its vision
stating: “Today, the Company aims to inspire the success of its millions of customers around the
world by continuously pushing the boundaries of mobile experiences” (BlackBerry, 2014).
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Vision must align with mission to provide unity in the message and create cultural elements that
are embodied by the collective organization. Again, this critical message must be restructured to
support cultural change in the organization.
BBRY: Organizational Challenge(s) to Address
Organizational decline is generally a result of poor strategy, leadership and financial
management that does not align or adapt to internal and external conditions most affecting the
firms competitive advantage (Carpenter & Sanders, 2009, pp.422-423). In order to overcome
organizational decline the firm must analyze all aspects of the business model, strategy,
leadership and culture to best define the core challenges to address. BlackBerry, a company in
steady organizational decline, provides an example of a firm with multiple organizational
challenges to address that provide the source for actionable strategy reformulation and
organizational change.
Currently, two organizational challenges exist for BlackBerry that can be identified in
broad organizational areas of strategy and culture. BlackBerry maintained a narrowly focused,
insular and arrogant corporate strategy that discounted competitor’s ability to overcome their
market position based upon the assumption that customer loyalty would produce constant
revenue streams that were due to assumed superior core capabilities of competitors (Jacobides,
2013, p.8). Consequently, the corporate strategy lost focus of the industry elements that brought
value to the firm through an inability to adapt to rapid changes in customer preferences and the
competitive landscape. BlackBerry maintained an antiquated strategic outlook asserting
position, scale, first order capability and perceived customer loyalty would be the source of
sustainable competitive advantage (Reeves & Deimler, 2011, p.137). Addressing and correcting
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this organizational challenge will be imperative to creating organizational strategies built on
adaptability through consistent industry and customer analysis to create a truly sustainable
competitive advantage for the firm.
Strategic challenges resulting in organizational decline also created organizational
cultural elements creating negative effects for the firm. Hierarchical structure created a dual CEO
leadership structure where decisions impacting the firm’s direction where not transparently
relayed or aligned correctly with core business objectives, thus creating lack of accountability
within the organization. Juxtaposing leadership structure was an aura of complacency based on
market dominance that decreased innovation seeking behavior produced fear and became
secretive with little internal collaboration (BlackBerry, 2014). Organizational cultural elements,
alongside strategic missteps, stifled growth of the company and created an immense challenge to
reassert its position in the market. BlackBerry must reform the culture to include vision
alignment, candor, transparency, defined structure and innovation as primary elements (Charan,
2006, p.66). Addressing both the strategic and cultural challenges will be key components to
producing successful outcomes for BlackBerry.
BBRY: Financial Standing and Affect on Profitability, Sustainability and Growth
Financial performance of a company provides valuable insight into the overall health,
direction, long and short term strategies and consumer confidence of a firm. Financial statement
analysis of balance sheets, income statements and cash flow statements allow external entities to
gain insight regarding firm’s knowledge of the economic environment, ability to forecast future
opportunities and generally assess the firm’s financial health relative to the competition
(Goodman et.al, 2014, p.332). Profitability, sustainability and growth are the core primary
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elements impacted through analysis of these statements, thus, analysis of BlackBerry will
provide insight into the impact of financial standings on these elements and the organizational
challenges that require a solution.
BlackBerry’s current financial standing is drawn from income statements, balance sheet,
and cash flow statements for their current annual reporting period. Income statement analysis
shows the firm’s performance across critical financial performance areas such as revenue, cost of
goods sold (COGS), net income, earnings per share (EPS), and earnings before interest taxes and
amortization (EBITA). BlackBerry currently maintains revenues ($7.14B), COGS ($7.7B), Net
Income (negative $6.15B), EPS (negative $11.70/share) and EBITA (negative $2.15B) that
shows a firm squarely in financial decline, low in investor and consumer confidence, and
struggling to give value back to stakeholders. Valuation of the firm is further referenced in the
P/E ratio (-1.17) compared to AAPL (17.52) and GOOG (27.33) which firmly asserts that
company is losing value at a high rate, not sustainable long term and not growing due to the
inability to generate positive earnings per share. Furthermore, this cements the need to address
the organizational challenge concerning strategic agility and adaptability to formulate the correct
profit pools to invest to produce consistent revenue streams both long and short term. Overall,
the effect of negative financial performance in these areas decreases the availability of acquiring
human capital resources, stifles potential growth through M&A and greatly impacts both short
and long term strategies to overcome previous missteps in strategy related areas.
Balance sheet analysis allows further insight into financial standing in terms of total
assets, total liabilities and shareholder equity that provides further insight into the firm’s health.
Currently, BlackBerry maintains total assets ($8.36B), total liabilities ($4.35B) and shareholder
equity ($4.01B). This is further delineated in a debt/equity ratio of .049, which compared to
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competitors of AAPL (.029) and GOOG (.005), shows high debt loads where outstanding
liabilities greatly affect cash flow and credit availability to support future identified growth
opportunities. Analysis of this statement concludes that BlackBerry has the lowest financial
strength in comparison to industry competitors. Due to this factor, the company may need to seek
sources of external funding through M&A activity in order to maintain sustainable growth. In
turn, these factors will potentially impeded solution of the organizational challenge concerning
both strategy and cultural changes. Inability to provide value to investors and decrease debt
loads will detract potential investments and cash flows necessary to seek future growth
opportunities.
Finally, Cash Flow statement analysis allows insight in the free cash flow (FCF) that
shows the ability of a company to pay debt, fund growth and ultimately survive in the
competitive landscape. Net operating, investing and financing cash flows comprise the important
factors of analysis in this statement. BlackBerry maintains net operating cash flows (negative
$166.3M), investing cash flows (negative $1.09B) and financing cash flows ($1.28B) showing
heavy dependence on outside financing to fund operations directly effecting profitability,
sustainability and growth. This is further evidenced in FCF of BlackBerry (negative $387.5M)
compared to industry competitors AAPL ($41.98B) and GOOG ($6.1B) showing competitors
ability to fund growth operational profitability and maintain sustainable growth. Alternatively,
BlackBerry must seek outside funding or M&A to gain FCF to support any new paths to growth.
Fundamentally, the firm is showing poor management of financials in producing positive
operational income to enhance free cash flow needed to reinvest in strategic objectives that will
enhance growth opportunities that are identified. Impacts of declining liquidity could potential
result in the loss of some core sources of competitive advantage, such as selling of intellectual
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property, that could greatly impede overcoming current organizational decline in terms of
profitability, positive cultural changes and long term strategic growth initiatives.
BBRY: Industry Analysis
Industry analysis serves a fundamental purpose for firms in their ability to assess the
landscape of their competitive environment relative to their ongoing strategic objectives.
Mauboussin & Bartholdson (2002) assert that industry analysis evolves through assessment of
three parts with each providing insights into the nature of the industry, the forces that affect the
industry and the disruptive innovations that can impact industry competition (p.10). Analysis of
BlackBerry’s industry utilizing Porter’s Five Forces will provide valuable insight into the
industry challenges, opportunities and constraints which form their competitive landscape.
Understanding the industry structure leads to the utilization of Porter’s Five Forces
analysis as a means to providing insight into trends, challenges, opportunities and constraints
relating to BlackBerry. Analysis of this type will allow a company to gain deeper understanding
into industry dynamics that directly affect strategies dictating sustainable value creation in the
industry (Maubossin & Bartholdson, 2002, p.17). Porter’s Five Forces analysis, displayed
below, delineates the industry dynamics in which Blackberry operates:
1. Threat of Entry (Moderate): Barriers to entry are high due to fixed costs of R&D,
hardware, manufacturing, intellectual property and talent acquisitions being extremely
capital intensive,
2. Intensity of Rivalry (High): Industry maintains intensely fierce rivalry among competitors
due to product attributes being easily imitated by competitors that create constant strategy
changes to acquire and maintain competitive advantage or market share,
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3. Bargaining Power of Buyers (Moderately High): Consumers and carries maintain sound
leverage in their buying power due to a vast amount of options in the market.
4. Threat of Substitutes (High): Lifecycle of products in the industry are relatively short and
technology is every changing increasing the likelihood of disruptive products and
innovations to replace those that currently exist,
5. Bargaining Power of Suppliers (High): for Blackberry has increased, due to Blackberry’s
eroding market share. Firms who dominate the mobile communications industry, such as
Apple, have relatively higher bargaining power, because larger product orders account
for more of the suppliers business (Industry Report, 2012).
Emphasis must be given to the importance of mapping the contours and structure of the
competitive landscape to implement the best strategies to attain maximum profitability (JWI 515,
Lecture One, Week Five). Applying Porter’s Five Forces analysis to BlackBerry’s industry
allows greater understanding of industry dynamics that will drive future solutions for
organizational challenges on the macro level.
BBRY: Competitive Landscape
Wireless telecommunication industry dynamics assert a highly competitive, rapidly
evolving and highly uncertain environment in which BlackBerry operates. The market is
constantly changing with constant product introductions, quickly evolving technology, short
product life cycles, aggressive pricing and rapid imitation of competitions offerings (Cromar,
2010, p. 41). Market dynamics of this nature present a competitive landscape that is inclusive of
all manufacturers and sellers of products within the industry resulting in the high levels of
differentiation. Subsequently, the markets high level of differentiation supports a structure
where no one competitor has significant market share to control prices within the market that
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creates extremely high levels of rivalry, highly competitive pricing and high leverage to the
consumer (Cromar, 2010, p.41). Dynamics of the competitive landscape dictate that survival is
predicated on consistent innovation, consumer preference understanding and being first to
market with new products to capture initial interest. Juxtaposing these survival elements is also
the need for firms to understand their place among competitors and the reasons those competitors
are winning in the market.
Direct competition within the industry comes from a group of competitors that have
similar market capitalization and characteristics of BlackBerry. Apple, Google and Microsoft
provide a triumvirate of competitors that BlackBerry can benchmark against via industry metrics.
Utilizing Operating System (OS) Market Share for the fourth quarter of 2014 as a benchmark
metric, it is realized that Google (76.6%) maintains a share and far outpaces the competitors of
Apple (19.7%), Microsoft (2.8%) and BlackBerry (.4%) within the competitive landscape
(Industry Report, 2014). This metric shows BlackBerry as a very small player in the consumer
market that is further compounded by a year over year decline in market share of 68.6%.
Conversely, BlackBerry maintains a high level of dominance in the enterprise category with an
almost 90% market share, thus asserting they are losing ground quickly in the consumer market.
Utilizing market capitalization as a secondary performance metric benchmark re-asserts the
position of BlackBerry in the landscape. Apple ($733B), Google ($384B) and Microsoft ($351B)
show a slight change at the top, but in comparison to BlackBerry ($5B) firmly assert their place
within the landscape.
Gaining ground within this market requires BlackBerry to analyze the competition to
understand their models for success and growth in the industry. Google, with their Android OS,
provides manufacturers with an open source model that manufacturers can implement for free on
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their hardware (Cromar, 2010, p.21). This provides Google with the ability to produce their OS
without creating additional capital intensities for manufacturing product and increasing
profitability. Apple, with their iOS, takes a different route and produces proprietary Smartphone
in which only their operating system exists, which is similar to the model used by BlackBerry.
Success is Apple, and considerable market cap, is achieved through the creation of synergies
within its own ecosystem of computers, electronics and software to produce cross functionality
of their product line (Cromar, 2010, p31). These models are different in approach but are primary
differentiators for their success in the market relative to BlackBerry. Additionally, success is
achieved due to a focus on consumer preferences throughout the entirety of the business model.
This allows both Google and Apple the ability to manage their ecosystems in a manner that
reacts quickly to changes in the market resulting in capitalizing on that change.
BBRY: Strategies for Addressing Identified Organizational Challenges
Organizational challenges resulting in stalled growth arise from root causes in premium
position captivity, innovation management breakdown, core abandonment and talent shortfalls
that share a direct relationship with failures to build adaptable strategies and organizational
design structures to support sustainability (Olson et. al, 2008, p.54). Blackberry has seen both a
stall in growth and meteoric decline relative to each of the aforementioned root causes.
Consequently, it has had great affect on competitive advantage in a highly competitive industry
and requires immediate correction in an effort to produce positive short and long term results.
Essential to addressing and correcting the challenges is formulating strategies to supplant current
directional efforts related to organizational strategy and cultural.
Correction of current organizational strategy foci will be achieved through a multi-
faceted approach based in systematic analysis of internal and external factors necessary to
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gaining competitive advantage. BlackBerry must first analyze their current business model at the
granular level to redefine their core strategy through assessment of internal capabilities and
external environmental factors. Five areas of assessment in the areas of current core customers,
core differentiation elements, identification of core industry profit pools, internal core
capabilities and the state of culture will reveal the future direction of sustainable strategy (Zook,
2007, p.74). Analysis to redefine the core of the business will provide a more pointed insight
into the firm’s abilities to support a strategic shift and the tools necessary to support a successful
shift. This will serve as a viable starting point that will be complemented through a second
analysis of the firm’s newly formed understanding of strategic direction
Currently, the company has lost the consumer market base and must focus more intently
on the enterprise market as the core customer component. Renewing this aspect will require the
firm to exploit and develop current capabilities such as software security, IT user balance and
wireless IT capabilities to create growth in this core area. Profit pool identification outside of the
core customer base must occur through the use of customer analytics to better align preferences
towards product offering with secondary affect on marketing mix strategies, cost and enhancing
brand equity. Collecting and integrating detailed data of customers, firm offerings and preferred
features through use of enhanced analytics capabilities will directly support the business model
on multiple levels influencing growth that will be instantly recognized (Davenport et. al, 2011,
p.86). Cultural component analysis concerning the business model changes shows a culture
stagnant and risk averse. Exploiting the talents and human capital that have a propensity to
innovate, take risk and collaborate will provide foundational elements of success during and post
assessment. Leadership must work diligently at identifying and selecting those who will be
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support the change process of the core business model to produce the intended results to
galvanize the rest of the culture toward the new mission and business focus.
Comparison of new direction to previous failure areas shows a distinct inability to adapt
to dynamics of the market. Analysis of the newly defined business model must ensure the
abilities to capitalize on redefined strategic foci and maintain a level adaptability to support
consistent growth of the firm based on incorporation of additional capabilities. BlackBerry must
incorporate business analytics at the enterprise level to ensure signals concerning change or
shifts in newly defined profit pools are quickly decoded and support existing strategy via rapid
experimentation and implementation of identified areas requiring shifts (Reeves & Deimler,
2011, p.137). Leadership must ensure that analytics becomes a cultural element that is utilized
on a daily basis to better enhance decision making and effect growth and profitability positively
at every turn. Current talent in the IT, research and development and engineering can effectively
support this cultural shift towards analytics utilization at the enterprise level. Exploiting this core
capability will allow the firm to build and enterprise platform that standardizes and integrates
data that adapts as needs and strategies change to support growth within the new business model
(Davenport, et.al, 2010, p. 50). Gaining this capacity will enhance the agility, adaptability and
create internal synergies that will overcome past deficiencies in this area.
Strategy formulation will also require cultural shifts identified through analysis that
support the newly defined core and adaptability as a form of competitive advantage. Achieving a
cultural shift will require formation of environments that encourage knowledge flow diversity,
autonomy, risk taking, and sharing to support strategic agility best achieved through adherence to
a structured process (Reeves & Deimler, 2011, p.140). Current cultural dynamics at BlackBerry
do not support the cultural elements needed to shift towards creation of new sustainable
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competitive advantages and overall organizational change. Ensuring the creation of this cultural
element is effectively achieved requires commitment to organizational change through adherence
to an eight stage sequential process with leadership as the driving force (Kotter, 2012, pp.33-34).
Challenges in cultural and strategic transformation will benefit from this structured approach as a
roadmap to success and overcome many difficult factors in the transformation that will
inevitably occur.
Supplementing this commitment to cultural change and the new business model will also
require the introduction of a workforce strategy. Identification of positions that are crucial to the
ability of the company to execute strategy must be toughly assessed to understand the core
competencies and skills related to these positions that will enhance competitive advantage
(Huselid et. al, 2005, p.2). The next step is to evaluate the existing talent relative to their
performance in current position, skills set and abilities. Identification of organizational members
who are improperly utilized will be achieved during this step. Immediately, leadership must
implement the 20-70-10 model of differentiation to support future evaluation process that easily
identifies these performers. Once this is complete the evaluated positions and talent must be
aligned properly within the hierarchical structure in an effort to support change initiatives and
create a strong guiding coalition for the process. Finally, development of middle 70 positions
must be implemented to create an organic growth pipeline of talent to replenish those “A”
positions lost to attrition. Huselid et. al. (2005) posits that placing the very best in strategic
positions while managing other talent effectively creates a workforce strategy that will leave
rivals scrambling (p.2). BlackBerry will benefit greatly from this strategy and provide a long
term solution to both organizational challenges currently facing the firm.
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Companies competing in the highly competitive consumer electronics industry require a
highly adaptable cultural make-up that aligns internal purpose, vision and strategy with the
appropriate needs of the customers (Reynolds, 2013, p.40). Cultural changes are a necessity in
the support of new strategic planning changes and must be aligned expertly to gain the best
outcomes. BlackBerry’s cultural shift will be predicated on the ability of the firm’s leadership to
align new vision and mission objectives and communicate change and transformation expertly.
Achievement of cultural and organizational change, through a systems approach, can be achieved
by utilizing Kotter’s Eight Stage Change Process. This process will form leadership’s approach
to overcoming complacency within the organization by eliciting higher levels of urgency and
removing reinforced or ingrained areas of complacency through generation of excitement from
new strategic direction producing quick wins (Kotter, 2012, pp. 44-46).
Changes, through the eights stages, will also need to pay special attention to the creation
of internal environments that encourage knowledge flow, diversity, risk taking and collaboration
to support alignment with innovation necessary for the new strategy success (Reeves & Deimler,
2011, p.140). Candor, communication, and the shift will also require leadership changes in
structure that moves from a dual CEO, rigid structure to singular leadership platform producing a
single voice to drive change. Supporting the new business structure will require the use of
various methods and tools to change the current cultural elements. Work-outs and Rapid Results
will provide collaborative forums for discussion and input concerning the renewed direction of
the firm. Leadership will be the key cog in the process and requires substantial changes in
structure, communication, collaboration and process to achieve the organizational cultural
changes necessary to enact lasting change.
BBRY: Change Management Plan
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Communication approaches related to organizational change provide a need for a
strategic aspect to produce successful outcomes. Organizations seeking change through a self
imposed need in the evolutionary process for survival in the business environment require
leaders to understand the distinct linkage between culture and change that is reciprocal in nature
and a key element to success (Odagiu et. al, 2012, p.158). BlackBerry is an organization whose
change process requires leadership to choose a communication approach that pays close attention
to the reciprocal nature of culture and communication in their effort to create sustainable change.
This will require leadership to enact a communication plan/strategy that clearly defines message
elements, the stakeholders the message is to be delivered, how it will take place and deep
engagement of the guiding coalition during planning and execution of the plan (JWMI 555,
Lecture One, Week Eight). Leadership will use this plan as their individual guidance to manage
and project the message to the employee base.
Communication plans for organizational change processes, such as BlackBerry, require
leaders to translate a clear message of activities and actions needed to foster the change
necessary. Communication of strategic elements requires leaders to account for five specific
elements in creation of a translatable message for BlackBerry’s leadership. Creation a message
that achieves maximum effectiveness must ensure it maintains the following (JWI 540, Lecture
One, and Week Nine):
1. Be Received: Leadership at BlackBerry must ensure the communication is
delivered in an attention grabbing manner that utilizes multiple delivery mediums
and managed from the top-down.
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2. Be Understood: Communications of the strategic objectives and the activities and
actions needed to support them must provide clarity and engagement in the
delivery process to avoid any confusion.
3. Be Credible: Leadership must leave no doubt about implementation of the
strategy and be adamant about eliminating any credibility gaps based in facts and
definable experiences.
4. Be Actionable: Communication of the message must include a systematic process
that clearly delineates the path towards implementation via resources, actions and
activities of the organization.
5. Be Timely: BlackBerry leadership must ensure the communication effort is
adaptable to changing needs while paying specific attention to the applicability of
the message to the current conditions and use multiple channels for delivery to
support this element.
Management of the communication plan and strategy implementation through adherence
to these elements will provide BlackBerry with a firm foundation for inducing necessary change.
Juxtaposing this is a need to clearly communicate the need for adherence within the management
structure to align communication efforts throughout the hierarchical structure. Creation of
communication networks in the management structure that are aligned in message delivery
styles, content and strategies to identify and overcome resistance will provide primary leadership
with a well defined system to manage the change process. Well formed communication and
information strategies that are inclusive of management and employees will provide avoidance of
pitfalls and hindrances throughout the implementation process while producing heightened
motivation to pursue implementation by the organization (Christensen, 2014, pp. 359-360).
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BlackBerry leadership will use this plan and associated strategies to effectively manage the
change process from both the strategy and cultural change aspects that are core to the leadership
challenge.
BBRY: Leadership Approach
Ford et. al. (2014) posits change leadership approaches are a complex amalgamation of
multiple leadership styles that require utilization at different times and different places to provide
guidance, purpose and meaning consistently (p.255). Change leadership within the context of
BlackBerry will require an approach that combines multiple functions across various depths of
the organization. The leadership approach to manage this change process effectively must be one
that can withstand challenges with dynamic, unique and innovative manner throughout the
process. Personally, leading this change initiative will incorporate the core crucibles of
leadership within the approach coupled with creative candor laden approach focused on inclusion
within the collective culture.
Four primary elements will serve as the foundational elements of the personal leadership
approach for BlackBerry. First, the approach will utilize my ability to engage others in a shared
meaning to ensure mobilization of employees around an entirely new management approach
(Bennis & Thomas, 2002, p.8). Utilizing creative communication techniques and active listening
to feedback will provide agility and adaptability in re-tailoring the change approach to maintain
engagement. Second, the personal leadership trait of creating a calming, distinctive and
compelling voice will provide those unsure about change a rallying point regardless of the
circumstances. Approaching conflicts within the process will utilize one on one discussion and a
personal approach that allows collaboration towards a solution. Third, maintaining integrity and
a strong set of values will provide employees and managers a real and consistent example of
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perseverance towards the vision and mission necessary for our success. Finally, the approach
will include the personal trait of adaptive capacity that utilizes the ability to transcend adversity
through grasping context of situation and displaying personal perseverance (Bennis & Thomas,
2002, p.8). Personally, my innate ability to read people and situations and adapt communication
instantly to promote, and achieve, solutions and success in a situation will define the overall
leadership approach within the BlackBerry change process.
BBRY: The First Ninety Days
Turnarounds and realignments require leadership to apply a distinct approach in the first
ninety days that are tailored to the specific business situation in order to ensure long-term
success (Watkins, 2009, p.49). As the transitioning leader responsible for dual purpose of
turnaround and realignment of BlackBerry, it becomes essential to formulate a ninety day
strategy that supports immediate success and support of initiatives. Foremost, the conveyance of
strategic intent to hone and leverage existing capabilities will be supported through
implementation of technical and cultural learning programs to identify key supporters with the
requisite knowledge necessary for successful change (Watkins, 2009, p.52). Assessing the
human capital and talent component best suited for the long haul will provide a solid foundation
to build upon and support the next step of goal setting.
Once these individuals are identified the selection of leadership team will occur with
immediate team focused collaboration to set A-priorities that will serve as vital initial goals that
are measurable. Arrival at these measurable goals will form the basis for situations to create
quick wins that enhance the credibility of the change process needed to energize the culture.
Furthermore, these revamped performance metrics will serve the dual function of informing
employees and management of potential critical weaknesses areas or new areas that require
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attention in both the long and short term (Watkins, 2009, p.49). Goals will be projected as both
quantitative and qualitative that emphasizes reward for achievement in the process that will be
displayed publicly to provide impact. Each of these elements will provide instant impact in the
first ninety days in terms of strategy support, positive organizational culture growth and
enhancing the productivity and innovation levels of the BlackBerry employee base.
References
Bennis, W.G., & Thomas, R.J. (2002). Crucibles of Leadership, Harvard Business Review,
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BlackBerry Limited. (2014). BlackBerry Limited - Does it Have a Future in the Consumer
Market, 1-26.
Strategic Leadership Plan
BlackBerry Limited SWOT Analysis. (2014). Research In Motion Limited SWOT Analysis, 1.
BlackBerry Limited. (2014). 2014 summary and annual report. Retrieved from:
http://us.blackberry.com/content/dam/bbCompany/Desktop/Global/PDF/Investors/Gover
nance/Annual_Information_Form_Fiscal_2014.pdf.
Carpenter, M. & Sanders, W. (2009). Strategic Management: A Dynamic Perspective 2nd ed.
New Jersey: Prentice Hall.
Charan, R. (2006). HOME DEPOT'S BLUEPRINT FOR Culture Change. (cover story). Harvard
Business Review, 84(4), 60-70.
Christensen, M. (2014). Communication as a Strategic Tool in Change Processes. Journal Of
Business Communication, 51(4), 359-385.
Cromar, S. (2010). Smartphones in the U.S.: Market Analysis, 1-41.
Davenport, T.H., Harris, J.G., & Morison, R. (2010). Analytics at Work: Smarter Decisions,
Better Results. Harvard Business Press, Boston:MA.
Davenport, T. H., Mule, L. D., & Lucker, J. (2011). Know What Your Customers Want Before
They Do. Harvard Business Review,89(12), 84-92.
Ford, J. D., Ford, L. W., & Polin, B. (2014). LEADERSHIP IN THE CONDUCT OF
ORGANIZATION CHANGE: AN INTEGRATIVE VIEW. Academy Of Management
Annual Meeting Proceedings, 215-220.
Goodman, T. H., Neamtiu, M., Shroff, N., & White, H. D. (2014). Management Forecast Quality
and Capital Investment Decisions. Accounting Review, 89(1), 331-365.
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Of Workforce Management. Harvard Business Review, 1-9.
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Report: Canada, (1), 1-12.
Jacobides, M. G. (2013). BLACKBERRY FORGOT TO MANAGE THE
ECOSYSTEM. Business Strategy Review, 24(4), 8.
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JWMI 515: Managerial Economics (2015). Lecture One, Week Five.
JWMI 540: Strategy (2015): Lecture One, Week One.
Kotter, J. (2012). Leading Change, Boston: Harvard Business Review Press.
Strategic Leadership Plan
Mauboussin, M. & Batholdson, K. (2002). Measuring the Economic Moat: Assessing the
Magnitude and Sustainability of Value Creation. 1-52.
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CULTURAL APPROACH. Proceedings Of The Scientific Conference AFASES, 157-
163.
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Business Review, 86(3), 50-61.
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Business Review, 89(7/8), 134-141.
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BBRY Strategic Leadership Plan Anderson

  • 1. Strategic Leadership Plan BlackBerry (BBRY) Strategic Leadership Plan Anthony Anderson Executive Summary This purpose of this paper is to provide a Strategic Leadership Plan (SLP) delineating viable solutions to organizational challenges facing BlackBerry (BBRY). Discussion will open with a high-level overview of the organization that includes addressing the core organizational
  • 2. Strategic Leadership Plan challenges currently facing the firm. Financial standing of BlackBerry will be analyzed relative to the organizational challenges and its affect on the firm’s sustainability, profitability and current growth efforts. Industry analysis will follow, focusing on the current competitive landscape and industry trends, current industry position of BlackBerry, and analysis of competitor’s reasons for current success in the industry relative to the firm. The SLP’s core focus of strategy to overcome current organizational challenges will be delineated to provide insight into leadership’s plan to correct current organizational decline. Following the strategy overview will be leadership’s plan for managing the implementation of organizational change initiatives to support successful strategy outcomes. SLP will then transition towards an explanation of the leadership approach to be utilized to further enhance successful outcomes in support of organizational change initiatives. Finally, the SLP will provide a description of actions in the first ninety days of implementation that will provide the foundational elements for sustainable success of the core strategy and organizational change initiatives for the firm. BBRY: Corporate Overview
  • 3. Strategic Leadership Plan Formation of BlackBerry occurred on March 7, 1984 under the auspices of the Business Incorporations Act (Ontario) which realized the commencement of business for the firm (BlackBerry, 2014). Founders Jim Balsillie and Mike Lazardis grew the company with dedication to innovation and creating business communications for business people. Culmination of their growth was achieved in 1999 with the introduction of the BlackBerry “Smartphone” solution that realized rapid accession to global leadership in the wireless mobile telecommunication industry (BlackBerry, 2014). Early success was witnessed in tremendous growth in revenues from $85M (2000) to $6B in (2008) and a firm position of industry leadership was achieved. However, the firm encountered a myriad of challenges and strategy issues in recent years which greatly impacted profitability, sustainability and competitive advantage culminating in swift organizational decline. Rapid decline has had a resultant effect on current core business function focus and core capabilities in an effort to correct course. Insight into multiple organizational elements and capabilities will provide more detail related to current business and strategic foci that form foundational elements of organizational challenges to address. Core business functions of BlackBerry (BBRY), at the industry level, focus on the research, design, manufacturing and sale of wireless communication products services and software on a global scale (BlackBerry, 2014). Further defining the firm’s core business functions is achieved through internal analysis. Internally, the firm defines four core business functions as the primary foci: Device Business (Smartphone), Enterprise Services, QNX Embedded Business and Messaging (BlackBerry Messenger), which serve as the basis for current strategic growth objectives (BlackBerry, 2014). Core business functions, from the internal perspective, provide the foundational elements that drive current management and
  • 4. Strategic Leadership Plan leadership focus during this decline period. Additionally, these functions have been greatly reduced relative to their high growth period in which core business functions ranged a much broader scope. Core competencies are the differentiating factors that provide companies with the source of competitive advantage. BlackBerry maintains current industry level strengths directly related to geographic presence, engineering prowess and R&D capabilities. Internally, the company maintains more specific firm related core competencies that are deemed sources of current competitive advantage by leadership. Five areas, listed below, delineate current firm competencies serving as sources of competitive advantage: 1. Device and software security at the enterprise level, 2. Intellectual property rights on software, 3. Products delivering balance to IT and consumer environments, 4. Products allowing IT wireless accessibility to key corporate data stores and, 5. Strength of the BlackBerry brand name and market awareness (Blackberry, 2014). Currently, these competencies serve as the primary internal sources that create profitability for the firm. Consequently, these differentiators serve as primary sources of exploitation relative to solving current organizational challenges facing the firm. Core business functions and competencies play a critical role in the formation of customer segments the company serves. Market segmentation of the firm provides insight into the core customers BlackBerry serves within the market. Three distinct market segments, General Consumer, Prosumer and Enterprise, produce the core customer base that drives profitability. General Consumers utilize the devices for personal use while the Prosumer utilizes
  • 5. Strategic Leadership Plan the device for dual functions of business and personal use. Enterprise users, or businesses acquiring the device for employee use, make up the final segment. No individual consumer segment represented a majority amount as it relates to financial impact for the company and is equally important to the company’s strategies (BlackBerry, 2014). The firm has created a defined market through application of functions and competencies to create the current core customers who are intended to drive growth through the message and direction provided by the mission and vision. Past Blackberry leadership placed little effort in creating a strong mission for their company to serve as the guiding message. Mission statements are intended to answer one basic question of the intentions of the firm to win in their business area as well communicated guide to employees and stakeholders (Welch, 2005). Blackberry does not post a public mission statement, rather the following was found from its annual 10-k report: “A global leader in wireless innovation, the Company revolutionized the mobile industry with the introduction of the BlackBerry solution in 1999. Today, the Company aims to inspire the success of its millions of customers around the world by continuously pushing the boundaries of mobile experiences” (BlackBerry, 2014). Enacting positive change is predicated on the providing the employee base with a direct, easily understood mission to direct their efforts. Enhancement of the mission will have great impact on cultural changes in the organization. Where mission is the blood that drives a company, its vision statement is what allows the company to grow and expand its brand by determining what it wants to become in the market and to the consumer. Hidden at the end of the mission statement BlackBerry alludes to its vision stating: “Today, the Company aims to inspire the success of its millions of customers around the world by continuously pushing the boundaries of mobile experiences” (BlackBerry, 2014).
  • 6. Strategic Leadership Plan Vision must align with mission to provide unity in the message and create cultural elements that are embodied by the collective organization. Again, this critical message must be restructured to support cultural change in the organization. BBRY: Organizational Challenge(s) to Address Organizational decline is generally a result of poor strategy, leadership and financial management that does not align or adapt to internal and external conditions most affecting the firms competitive advantage (Carpenter & Sanders, 2009, pp.422-423). In order to overcome organizational decline the firm must analyze all aspects of the business model, strategy, leadership and culture to best define the core challenges to address. BlackBerry, a company in steady organizational decline, provides an example of a firm with multiple organizational challenges to address that provide the source for actionable strategy reformulation and organizational change. Currently, two organizational challenges exist for BlackBerry that can be identified in broad organizational areas of strategy and culture. BlackBerry maintained a narrowly focused, insular and arrogant corporate strategy that discounted competitor’s ability to overcome their market position based upon the assumption that customer loyalty would produce constant revenue streams that were due to assumed superior core capabilities of competitors (Jacobides, 2013, p.8). Consequently, the corporate strategy lost focus of the industry elements that brought value to the firm through an inability to adapt to rapid changes in customer preferences and the competitive landscape. BlackBerry maintained an antiquated strategic outlook asserting position, scale, first order capability and perceived customer loyalty would be the source of sustainable competitive advantage (Reeves & Deimler, 2011, p.137). Addressing and correcting
  • 7. Strategic Leadership Plan this organizational challenge will be imperative to creating organizational strategies built on adaptability through consistent industry and customer analysis to create a truly sustainable competitive advantage for the firm. Strategic challenges resulting in organizational decline also created organizational cultural elements creating negative effects for the firm. Hierarchical structure created a dual CEO leadership structure where decisions impacting the firm’s direction where not transparently relayed or aligned correctly with core business objectives, thus creating lack of accountability within the organization. Juxtaposing leadership structure was an aura of complacency based on market dominance that decreased innovation seeking behavior produced fear and became secretive with little internal collaboration (BlackBerry, 2014). Organizational cultural elements, alongside strategic missteps, stifled growth of the company and created an immense challenge to reassert its position in the market. BlackBerry must reform the culture to include vision alignment, candor, transparency, defined structure and innovation as primary elements (Charan, 2006, p.66). Addressing both the strategic and cultural challenges will be key components to producing successful outcomes for BlackBerry. BBRY: Financial Standing and Affect on Profitability, Sustainability and Growth Financial performance of a company provides valuable insight into the overall health, direction, long and short term strategies and consumer confidence of a firm. Financial statement analysis of balance sheets, income statements and cash flow statements allow external entities to gain insight regarding firm’s knowledge of the economic environment, ability to forecast future opportunities and generally assess the firm’s financial health relative to the competition (Goodman et.al, 2014, p.332). Profitability, sustainability and growth are the core primary
  • 8. Strategic Leadership Plan elements impacted through analysis of these statements, thus, analysis of BlackBerry will provide insight into the impact of financial standings on these elements and the organizational challenges that require a solution. BlackBerry’s current financial standing is drawn from income statements, balance sheet, and cash flow statements for their current annual reporting period. Income statement analysis shows the firm’s performance across critical financial performance areas such as revenue, cost of goods sold (COGS), net income, earnings per share (EPS), and earnings before interest taxes and amortization (EBITA). BlackBerry currently maintains revenues ($7.14B), COGS ($7.7B), Net Income (negative $6.15B), EPS (negative $11.70/share) and EBITA (negative $2.15B) that shows a firm squarely in financial decline, low in investor and consumer confidence, and struggling to give value back to stakeholders. Valuation of the firm is further referenced in the P/E ratio (-1.17) compared to AAPL (17.52) and GOOG (27.33) which firmly asserts that company is losing value at a high rate, not sustainable long term and not growing due to the inability to generate positive earnings per share. Furthermore, this cements the need to address the organizational challenge concerning strategic agility and adaptability to formulate the correct profit pools to invest to produce consistent revenue streams both long and short term. Overall, the effect of negative financial performance in these areas decreases the availability of acquiring human capital resources, stifles potential growth through M&A and greatly impacts both short and long term strategies to overcome previous missteps in strategy related areas. Balance sheet analysis allows further insight into financial standing in terms of total assets, total liabilities and shareholder equity that provides further insight into the firm’s health. Currently, BlackBerry maintains total assets ($8.36B), total liabilities ($4.35B) and shareholder equity ($4.01B). This is further delineated in a debt/equity ratio of .049, which compared to
  • 9. Strategic Leadership Plan competitors of AAPL (.029) and GOOG (.005), shows high debt loads where outstanding liabilities greatly affect cash flow and credit availability to support future identified growth opportunities. Analysis of this statement concludes that BlackBerry has the lowest financial strength in comparison to industry competitors. Due to this factor, the company may need to seek sources of external funding through M&A activity in order to maintain sustainable growth. In turn, these factors will potentially impeded solution of the organizational challenge concerning both strategy and cultural changes. Inability to provide value to investors and decrease debt loads will detract potential investments and cash flows necessary to seek future growth opportunities. Finally, Cash Flow statement analysis allows insight in the free cash flow (FCF) that shows the ability of a company to pay debt, fund growth and ultimately survive in the competitive landscape. Net operating, investing and financing cash flows comprise the important factors of analysis in this statement. BlackBerry maintains net operating cash flows (negative $166.3M), investing cash flows (negative $1.09B) and financing cash flows ($1.28B) showing heavy dependence on outside financing to fund operations directly effecting profitability, sustainability and growth. This is further evidenced in FCF of BlackBerry (negative $387.5M) compared to industry competitors AAPL ($41.98B) and GOOG ($6.1B) showing competitors ability to fund growth operational profitability and maintain sustainable growth. Alternatively, BlackBerry must seek outside funding or M&A to gain FCF to support any new paths to growth. Fundamentally, the firm is showing poor management of financials in producing positive operational income to enhance free cash flow needed to reinvest in strategic objectives that will enhance growth opportunities that are identified. Impacts of declining liquidity could potential result in the loss of some core sources of competitive advantage, such as selling of intellectual
  • 10. Strategic Leadership Plan property, that could greatly impede overcoming current organizational decline in terms of profitability, positive cultural changes and long term strategic growth initiatives. BBRY: Industry Analysis Industry analysis serves a fundamental purpose for firms in their ability to assess the landscape of their competitive environment relative to their ongoing strategic objectives. Mauboussin & Bartholdson (2002) assert that industry analysis evolves through assessment of three parts with each providing insights into the nature of the industry, the forces that affect the industry and the disruptive innovations that can impact industry competition (p.10). Analysis of BlackBerry’s industry utilizing Porter’s Five Forces will provide valuable insight into the industry challenges, opportunities and constraints which form their competitive landscape. Understanding the industry structure leads to the utilization of Porter’s Five Forces analysis as a means to providing insight into trends, challenges, opportunities and constraints relating to BlackBerry. Analysis of this type will allow a company to gain deeper understanding into industry dynamics that directly affect strategies dictating sustainable value creation in the industry (Maubossin & Bartholdson, 2002, p.17). Porter’s Five Forces analysis, displayed below, delineates the industry dynamics in which Blackberry operates: 1. Threat of Entry (Moderate): Barriers to entry are high due to fixed costs of R&D, hardware, manufacturing, intellectual property and talent acquisitions being extremely capital intensive, 2. Intensity of Rivalry (High): Industry maintains intensely fierce rivalry among competitors due to product attributes being easily imitated by competitors that create constant strategy changes to acquire and maintain competitive advantage or market share,
  • 11. Strategic Leadership Plan 3. Bargaining Power of Buyers (Moderately High): Consumers and carries maintain sound leverage in their buying power due to a vast amount of options in the market. 4. Threat of Substitutes (High): Lifecycle of products in the industry are relatively short and technology is every changing increasing the likelihood of disruptive products and innovations to replace those that currently exist, 5. Bargaining Power of Suppliers (High): for Blackberry has increased, due to Blackberry’s eroding market share. Firms who dominate the mobile communications industry, such as Apple, have relatively higher bargaining power, because larger product orders account for more of the suppliers business (Industry Report, 2012). Emphasis must be given to the importance of mapping the contours and structure of the competitive landscape to implement the best strategies to attain maximum profitability (JWI 515, Lecture One, Week Five). Applying Porter’s Five Forces analysis to BlackBerry’s industry allows greater understanding of industry dynamics that will drive future solutions for organizational challenges on the macro level. BBRY: Competitive Landscape Wireless telecommunication industry dynamics assert a highly competitive, rapidly evolving and highly uncertain environment in which BlackBerry operates. The market is constantly changing with constant product introductions, quickly evolving technology, short product life cycles, aggressive pricing and rapid imitation of competitions offerings (Cromar, 2010, p. 41). Market dynamics of this nature present a competitive landscape that is inclusive of all manufacturers and sellers of products within the industry resulting in the high levels of differentiation. Subsequently, the markets high level of differentiation supports a structure where no one competitor has significant market share to control prices within the market that
  • 12. Strategic Leadership Plan creates extremely high levels of rivalry, highly competitive pricing and high leverage to the consumer (Cromar, 2010, p.41). Dynamics of the competitive landscape dictate that survival is predicated on consistent innovation, consumer preference understanding and being first to market with new products to capture initial interest. Juxtaposing these survival elements is also the need for firms to understand their place among competitors and the reasons those competitors are winning in the market. Direct competition within the industry comes from a group of competitors that have similar market capitalization and characteristics of BlackBerry. Apple, Google and Microsoft provide a triumvirate of competitors that BlackBerry can benchmark against via industry metrics. Utilizing Operating System (OS) Market Share for the fourth quarter of 2014 as a benchmark metric, it is realized that Google (76.6%) maintains a share and far outpaces the competitors of Apple (19.7%), Microsoft (2.8%) and BlackBerry (.4%) within the competitive landscape (Industry Report, 2014). This metric shows BlackBerry as a very small player in the consumer market that is further compounded by a year over year decline in market share of 68.6%. Conversely, BlackBerry maintains a high level of dominance in the enterprise category with an almost 90% market share, thus asserting they are losing ground quickly in the consumer market. Utilizing market capitalization as a secondary performance metric benchmark re-asserts the position of BlackBerry in the landscape. Apple ($733B), Google ($384B) and Microsoft ($351B) show a slight change at the top, but in comparison to BlackBerry ($5B) firmly assert their place within the landscape. Gaining ground within this market requires BlackBerry to analyze the competition to understand their models for success and growth in the industry. Google, with their Android OS, provides manufacturers with an open source model that manufacturers can implement for free on
  • 13. Strategic Leadership Plan their hardware (Cromar, 2010, p.21). This provides Google with the ability to produce their OS without creating additional capital intensities for manufacturing product and increasing profitability. Apple, with their iOS, takes a different route and produces proprietary Smartphone in which only their operating system exists, which is similar to the model used by BlackBerry. Success is Apple, and considerable market cap, is achieved through the creation of synergies within its own ecosystem of computers, electronics and software to produce cross functionality of their product line (Cromar, 2010, p31). These models are different in approach but are primary differentiators for their success in the market relative to BlackBerry. Additionally, success is achieved due to a focus on consumer preferences throughout the entirety of the business model. This allows both Google and Apple the ability to manage their ecosystems in a manner that reacts quickly to changes in the market resulting in capitalizing on that change. BBRY: Strategies for Addressing Identified Organizational Challenges Organizational challenges resulting in stalled growth arise from root causes in premium position captivity, innovation management breakdown, core abandonment and talent shortfalls that share a direct relationship with failures to build adaptable strategies and organizational design structures to support sustainability (Olson et. al, 2008, p.54). Blackberry has seen both a stall in growth and meteoric decline relative to each of the aforementioned root causes. Consequently, it has had great affect on competitive advantage in a highly competitive industry and requires immediate correction in an effort to produce positive short and long term results. Essential to addressing and correcting the challenges is formulating strategies to supplant current directional efforts related to organizational strategy and cultural. Correction of current organizational strategy foci will be achieved through a multi- faceted approach based in systematic analysis of internal and external factors necessary to
  • 14. Strategic Leadership Plan gaining competitive advantage. BlackBerry must first analyze their current business model at the granular level to redefine their core strategy through assessment of internal capabilities and external environmental factors. Five areas of assessment in the areas of current core customers, core differentiation elements, identification of core industry profit pools, internal core capabilities and the state of culture will reveal the future direction of sustainable strategy (Zook, 2007, p.74). Analysis to redefine the core of the business will provide a more pointed insight into the firm’s abilities to support a strategic shift and the tools necessary to support a successful shift. This will serve as a viable starting point that will be complemented through a second analysis of the firm’s newly formed understanding of strategic direction Currently, the company has lost the consumer market base and must focus more intently on the enterprise market as the core customer component. Renewing this aspect will require the firm to exploit and develop current capabilities such as software security, IT user balance and wireless IT capabilities to create growth in this core area. Profit pool identification outside of the core customer base must occur through the use of customer analytics to better align preferences towards product offering with secondary affect on marketing mix strategies, cost and enhancing brand equity. Collecting and integrating detailed data of customers, firm offerings and preferred features through use of enhanced analytics capabilities will directly support the business model on multiple levels influencing growth that will be instantly recognized (Davenport et. al, 2011, p.86). Cultural component analysis concerning the business model changes shows a culture stagnant and risk averse. Exploiting the talents and human capital that have a propensity to innovate, take risk and collaborate will provide foundational elements of success during and post assessment. Leadership must work diligently at identifying and selecting those who will be
  • 15. Strategic Leadership Plan support the change process of the core business model to produce the intended results to galvanize the rest of the culture toward the new mission and business focus. Comparison of new direction to previous failure areas shows a distinct inability to adapt to dynamics of the market. Analysis of the newly defined business model must ensure the abilities to capitalize on redefined strategic foci and maintain a level adaptability to support consistent growth of the firm based on incorporation of additional capabilities. BlackBerry must incorporate business analytics at the enterprise level to ensure signals concerning change or shifts in newly defined profit pools are quickly decoded and support existing strategy via rapid experimentation and implementation of identified areas requiring shifts (Reeves & Deimler, 2011, p.137). Leadership must ensure that analytics becomes a cultural element that is utilized on a daily basis to better enhance decision making and effect growth and profitability positively at every turn. Current talent in the IT, research and development and engineering can effectively support this cultural shift towards analytics utilization at the enterprise level. Exploiting this core capability will allow the firm to build and enterprise platform that standardizes and integrates data that adapts as needs and strategies change to support growth within the new business model (Davenport, et.al, 2010, p. 50). Gaining this capacity will enhance the agility, adaptability and create internal synergies that will overcome past deficiencies in this area. Strategy formulation will also require cultural shifts identified through analysis that support the newly defined core and adaptability as a form of competitive advantage. Achieving a cultural shift will require formation of environments that encourage knowledge flow diversity, autonomy, risk taking, and sharing to support strategic agility best achieved through adherence to a structured process (Reeves & Deimler, 2011, p.140). Current cultural dynamics at BlackBerry do not support the cultural elements needed to shift towards creation of new sustainable
  • 16. Strategic Leadership Plan competitive advantages and overall organizational change. Ensuring the creation of this cultural element is effectively achieved requires commitment to organizational change through adherence to an eight stage sequential process with leadership as the driving force (Kotter, 2012, pp.33-34). Challenges in cultural and strategic transformation will benefit from this structured approach as a roadmap to success and overcome many difficult factors in the transformation that will inevitably occur. Supplementing this commitment to cultural change and the new business model will also require the introduction of a workforce strategy. Identification of positions that are crucial to the ability of the company to execute strategy must be toughly assessed to understand the core competencies and skills related to these positions that will enhance competitive advantage (Huselid et. al, 2005, p.2). The next step is to evaluate the existing talent relative to their performance in current position, skills set and abilities. Identification of organizational members who are improperly utilized will be achieved during this step. Immediately, leadership must implement the 20-70-10 model of differentiation to support future evaluation process that easily identifies these performers. Once this is complete the evaluated positions and talent must be aligned properly within the hierarchical structure in an effort to support change initiatives and create a strong guiding coalition for the process. Finally, development of middle 70 positions must be implemented to create an organic growth pipeline of talent to replenish those “A” positions lost to attrition. Huselid et. al. (2005) posits that placing the very best in strategic positions while managing other talent effectively creates a workforce strategy that will leave rivals scrambling (p.2). BlackBerry will benefit greatly from this strategy and provide a long term solution to both organizational challenges currently facing the firm.
  • 17. Strategic Leadership Plan Companies competing in the highly competitive consumer electronics industry require a highly adaptable cultural make-up that aligns internal purpose, vision and strategy with the appropriate needs of the customers (Reynolds, 2013, p.40). Cultural changes are a necessity in the support of new strategic planning changes and must be aligned expertly to gain the best outcomes. BlackBerry’s cultural shift will be predicated on the ability of the firm’s leadership to align new vision and mission objectives and communicate change and transformation expertly. Achievement of cultural and organizational change, through a systems approach, can be achieved by utilizing Kotter’s Eight Stage Change Process. This process will form leadership’s approach to overcoming complacency within the organization by eliciting higher levels of urgency and removing reinforced or ingrained areas of complacency through generation of excitement from new strategic direction producing quick wins (Kotter, 2012, pp. 44-46). Changes, through the eights stages, will also need to pay special attention to the creation of internal environments that encourage knowledge flow, diversity, risk taking and collaboration to support alignment with innovation necessary for the new strategy success (Reeves & Deimler, 2011, p.140). Candor, communication, and the shift will also require leadership changes in structure that moves from a dual CEO, rigid structure to singular leadership platform producing a single voice to drive change. Supporting the new business structure will require the use of various methods and tools to change the current cultural elements. Work-outs and Rapid Results will provide collaborative forums for discussion and input concerning the renewed direction of the firm. Leadership will be the key cog in the process and requires substantial changes in structure, communication, collaboration and process to achieve the organizational cultural changes necessary to enact lasting change. BBRY: Change Management Plan
  • 18. Strategic Leadership Plan Communication approaches related to organizational change provide a need for a strategic aspect to produce successful outcomes. Organizations seeking change through a self imposed need in the evolutionary process for survival in the business environment require leaders to understand the distinct linkage between culture and change that is reciprocal in nature and a key element to success (Odagiu et. al, 2012, p.158). BlackBerry is an organization whose change process requires leadership to choose a communication approach that pays close attention to the reciprocal nature of culture and communication in their effort to create sustainable change. This will require leadership to enact a communication plan/strategy that clearly defines message elements, the stakeholders the message is to be delivered, how it will take place and deep engagement of the guiding coalition during planning and execution of the plan (JWMI 555, Lecture One, Week Eight). Leadership will use this plan as their individual guidance to manage and project the message to the employee base. Communication plans for organizational change processes, such as BlackBerry, require leaders to translate a clear message of activities and actions needed to foster the change necessary. Communication of strategic elements requires leaders to account for five specific elements in creation of a translatable message for BlackBerry’s leadership. Creation a message that achieves maximum effectiveness must ensure it maintains the following (JWI 540, Lecture One, and Week Nine): 1. Be Received: Leadership at BlackBerry must ensure the communication is delivered in an attention grabbing manner that utilizes multiple delivery mediums and managed from the top-down.
  • 19. Strategic Leadership Plan 2. Be Understood: Communications of the strategic objectives and the activities and actions needed to support them must provide clarity and engagement in the delivery process to avoid any confusion. 3. Be Credible: Leadership must leave no doubt about implementation of the strategy and be adamant about eliminating any credibility gaps based in facts and definable experiences. 4. Be Actionable: Communication of the message must include a systematic process that clearly delineates the path towards implementation via resources, actions and activities of the organization. 5. Be Timely: BlackBerry leadership must ensure the communication effort is adaptable to changing needs while paying specific attention to the applicability of the message to the current conditions and use multiple channels for delivery to support this element. Management of the communication plan and strategy implementation through adherence to these elements will provide BlackBerry with a firm foundation for inducing necessary change. Juxtaposing this is a need to clearly communicate the need for adherence within the management structure to align communication efforts throughout the hierarchical structure. Creation of communication networks in the management structure that are aligned in message delivery styles, content and strategies to identify and overcome resistance will provide primary leadership with a well defined system to manage the change process. Well formed communication and information strategies that are inclusive of management and employees will provide avoidance of pitfalls and hindrances throughout the implementation process while producing heightened motivation to pursue implementation by the organization (Christensen, 2014, pp. 359-360).
  • 20. Strategic Leadership Plan BlackBerry leadership will use this plan and associated strategies to effectively manage the change process from both the strategy and cultural change aspects that are core to the leadership challenge. BBRY: Leadership Approach Ford et. al. (2014) posits change leadership approaches are a complex amalgamation of multiple leadership styles that require utilization at different times and different places to provide guidance, purpose and meaning consistently (p.255). Change leadership within the context of BlackBerry will require an approach that combines multiple functions across various depths of the organization. The leadership approach to manage this change process effectively must be one that can withstand challenges with dynamic, unique and innovative manner throughout the process. Personally, leading this change initiative will incorporate the core crucibles of leadership within the approach coupled with creative candor laden approach focused on inclusion within the collective culture. Four primary elements will serve as the foundational elements of the personal leadership approach for BlackBerry. First, the approach will utilize my ability to engage others in a shared meaning to ensure mobilization of employees around an entirely new management approach (Bennis & Thomas, 2002, p.8). Utilizing creative communication techniques and active listening to feedback will provide agility and adaptability in re-tailoring the change approach to maintain engagement. Second, the personal leadership trait of creating a calming, distinctive and compelling voice will provide those unsure about change a rallying point regardless of the circumstances. Approaching conflicts within the process will utilize one on one discussion and a personal approach that allows collaboration towards a solution. Third, maintaining integrity and a strong set of values will provide employees and managers a real and consistent example of
  • 21. Strategic Leadership Plan perseverance towards the vision and mission necessary for our success. Finally, the approach will include the personal trait of adaptive capacity that utilizes the ability to transcend adversity through grasping context of situation and displaying personal perseverance (Bennis & Thomas, 2002, p.8). Personally, my innate ability to read people and situations and adapt communication instantly to promote, and achieve, solutions and success in a situation will define the overall leadership approach within the BlackBerry change process. BBRY: The First Ninety Days Turnarounds and realignments require leadership to apply a distinct approach in the first ninety days that are tailored to the specific business situation in order to ensure long-term success (Watkins, 2009, p.49). As the transitioning leader responsible for dual purpose of turnaround and realignment of BlackBerry, it becomes essential to formulate a ninety day strategy that supports immediate success and support of initiatives. Foremost, the conveyance of strategic intent to hone and leverage existing capabilities will be supported through implementation of technical and cultural learning programs to identify key supporters with the requisite knowledge necessary for successful change (Watkins, 2009, p.52). Assessing the human capital and talent component best suited for the long haul will provide a solid foundation to build upon and support the next step of goal setting. Once these individuals are identified the selection of leadership team will occur with immediate team focused collaboration to set A-priorities that will serve as vital initial goals that are measurable. Arrival at these measurable goals will form the basis for situations to create quick wins that enhance the credibility of the change process needed to energize the culture. Furthermore, these revamped performance metrics will serve the dual function of informing employees and management of potential critical weaknesses areas or new areas that require
  • 22. Strategic Leadership Plan attention in both the long and short term (Watkins, 2009, p.49). Goals will be projected as both quantitative and qualitative that emphasizes reward for achievement in the process that will be displayed publicly to provide impact. Each of these elements will provide instant impact in the first ninety days in terms of strategy support, positive organizational culture growth and enhancing the productivity and innovation levels of the BlackBerry employee base. References Bennis, W.G., & Thomas, R.J. (2002). Crucibles of Leadership, Harvard Business Review, 1-8. BlackBerry Limited. (2014). BlackBerry Limited - Does it Have a Future in the Consumer Market, 1-26.
  • 23. Strategic Leadership Plan BlackBerry Limited SWOT Analysis. (2014). Research In Motion Limited SWOT Analysis, 1. BlackBerry Limited. (2014). 2014 summary and annual report. Retrieved from: http://us.blackberry.com/content/dam/bbCompany/Desktop/Global/PDF/Investors/Gover nance/Annual_Information_Form_Fiscal_2014.pdf. Carpenter, M. & Sanders, W. (2009). Strategic Management: A Dynamic Perspective 2nd ed. New Jersey: Prentice Hall. Charan, R. (2006). HOME DEPOT'S BLUEPRINT FOR Culture Change. (cover story). Harvard Business Review, 84(4), 60-70. Christensen, M. (2014). Communication as a Strategic Tool in Change Processes. Journal Of Business Communication, 51(4), 359-385. Cromar, S. (2010). Smartphones in the U.S.: Market Analysis, 1-41. Davenport, T.H., Harris, J.G., & Morison, R. (2010). Analytics at Work: Smarter Decisions, Better Results. Harvard Business Press, Boston:MA. Davenport, T. H., Mule, L. D., & Lucker, J. (2011). Know What Your Customers Want Before They Do. Harvard Business Review,89(12), 84-92. Ford, J. D., Ford, L. W., & Polin, B. (2014). LEADERSHIP IN THE CONDUCT OF ORGANIZATION CHANGE: AN INTEGRATIVE VIEW. Academy Of Management Annual Meeting Proceedings, 215-220. Goodman, T. H., Neamtiu, M., Shroff, N., & White, H. D. (2014). Management Forecast Quality and Capital Investment Decisions. Accounting Review, 89(1), 331-365. Huselid, M., Beatty, R. & Becker, B. (2005). “A” Players or “A” Positions: The Strategic Logic Of Workforce Management. Harvard Business Review, 1-9. Industry Report on Telecoms and Technology: Canada (cover story). (2012). Telecoms Industry Report: Canada, (1), 1-12. Jacobides, M. G. (2013). BLACKBERRY FORGOT TO MANAGE THE ECOSYSTEM. Business Strategy Review, 24(4), 8. References JWMI 515: Managerial Economics (2015). Lecture One, Week Five. JWMI 540: Strategy (2015): Lecture One, Week One. Kotter, J. (2012). Leading Change, Boston: Harvard Business Review Press.
  • 24. Strategic Leadership Plan Mauboussin, M. & Batholdson, K. (2002). Measuring the Economic Moat: Assessing the Magnitude and Sustainability of Value Creation. 1-52. ODAGIU, C., & PIŢURLEA, M. (2012). ORGANIZATIONAL CHANGE MANAGEMENT. A CULTURAL APPROACH. Proceedings Of The Scientific Conference AFASES, 157- 163. Olson, M. S., van Bever, D., & Verry, S. (2008). When Growth Stalls. (cover story). Harvard Business Review, 86(3), 50-61. Reeves, M., & Deimler, M. (2011). Adaptability: The New Competitive Advantage. Harvard Business Review, 89(7/8), 134-141. Watkins, M. D. (2009). Picking the Right Transition Strategy. (cover story). Harvard Business Review, 87(1), 46-53. Welch, J. (2005). Winning, Harper Collins. Zook, C. (2007). Finding Your Next CORE Business. Harvard Business Review, 85(4), 66-75.