Running head: THORSTEN HEINS 1 Thorsten Heins’ Structural Approach to RIM’s Adaptive Challenge Andrea N. Anthes Virginia Commonwealth University THORSTEN HEINS 2 Thorsten Heins’ Structural Approach to RIM’s Adaptive Challenge Introduction BlackBerrys were so popular and highly addictive in 2006 that the device earned the nickname, “CrackBerry.” The moniker spread quickly, was added to Webster’s New World College Dictionary, and earned the recognition as the 2006 Word of the Year (Wiley, 2006). Unfortunately, due to the continued success of Research In Motion’s (RIM) main competitors, the iPhone and the Android, the BlackBerry lost its appeal to smartphone consumers. As a result, RIM’s stock fell over 90% in the last four years from $150 to $6 a share (Marlow, 2012). Research In Motion could not continue to endure such drops in its performance or else they would soon face the end. An adaptive challenge is defined by Drath (2001) as a struggle confronting “a community or organization for which it has no preexisting resources, remedies, tools, solutions, or even the means for accurately naming and describing the challenge” (p. 21). RIM was undoubtedly encountering an adaptive challenge and needed a solution. Thorsten Heins, Chief Executive Officer (CEO) for RIM, pronounced, “You climb a mountain step by step,” (Bohn, 2012, para. 4) and that is exactly how he lead his company out of this predicament. According to Bolman & Deal (2008) a good frame, or set of ideas and assumptions, makes it easier for a leader to analyze a situation so that he or she can decide what to do about it. By utilizing a structural frame, Heins focused on thinking clearly and getting organized (Bolman & Deal, 2008). “The structural frame depicts a rational world and emphasizes organizational architecture, including goals, structure, technology, specialized roles, coordination, and formal relationships” (Bolman & Deal, 2008, p. 15). From this lens, Heins dedicated his attention to establishing realistic goals, setting direction for the company, and improving their product and THORSTEN HEINS 3 technology. Using this structural approach, RIM remains a competitor in the smartphone industry and surmounted the adaptive challenge before them. Establishing Realistic Goals One of the main assumptions driving the structural frame is that organizations exist to achieve established goals (Bolman & Deal, 2008). To surmount the adaptive challenge from a structural perspective, Heins needed to create realistic goals for his company. He respected his station in the current mobile device market and acknowledged that RIM could not beat the iPhone and Android at this time. "We have a clear shot at being the number three platform on the market. We're not just another open platform on the market, we are BlackBerry,” said Heins (Bohn, 2012, para. 1). This goal is based on another key assumption of the structural frame, which is that “organizations work best when rationality prevails over personal agendas and extraneous pressures” (Bolman & Deal, 2008, p. 47). While Heins most likely felt compelled to set lofty goals by RIM’s stakeholders, he remained rational and created realistic targets that could be achieved with direction and innovative, hard work. Setting Direction When Heins first took over as CEO after being a loyal RIM executive for years, he proclaimed, “There’s no need for me to shake this company up. Our product is great.” If anything, he added, “we just need to talk about it more” (Marlow, 2012, para. 3). Heins continued to evaluate the company’s crisis under another assumption within the structural frame. “Problems arise and performance suffers from structural deficiencies, which can be remedied through analysis and restructuring” (Bolman & Deal, 2008, p. 47). RIM changed its structure to THORSTEN HEINS 4 create a single, integrated marketing organization led by the new Chief Marketing Officer, Frank Boulben (Bohn, 2012). Less than 100 days into his tenure, Heins realized that marketing was not RIM’s only problem. Without a solid product that could compete with Apple’s iPhone and Google’s Android options, marketing would not matter. “We recognize the need for change,” said Heins (Liedtke, 2012, para. 4). An effective leader sets direction for his or her team, but will not hesitate to change course if needed (Lencioni, 2002). Heins realized he must “[provide] focus to the company, making clear what counts, what everybody needs to work on” (Marlow, 2012, “Day 94,” para. 1). RIM considered what made their products successful in the first place, and commenced a major initiative-- surveying all of the BlackBerry users around the world to discover how they were utilizing their devices. Heins would use this information to set direction for the company and improve RIM’s next product, the BlackBerry 10. Improving Product and Technology What Heins discovered from the expansive survey was that security was still quintessential to RIM’s customers; in fact, it was one of the main reasons corporations still sought out the wireless service provider (Marlow, 2012). Highly structural, effective teams are known to “take action and remedy problems,” including “[addressing] quality issues [and] customer service needs” (Bolman & Deal, 2008, p. 113). Considering that many of RIM’s clientele utilize the device for business purposes, Heins ensured that the new technology would continue to allow users to multitask in a secure environment, while offering better calendar management, and more ways to connect with other workers (Liedtke, 2012). THORSTEN HEINS 5 Heins also noted that many of their users were carrying BlackBerries for work and another device for fun. Heins’ goal was to consolidate their devices, which would mean increasing the amount of applications available to their customers and adding more features for personal use. Heins spent a good deal of time wooing software developers with the proper tools and financial incentives in an effort to persuade them to work with BlackBerry 10 to increase the number of apps available to BlackBerry users. The “BlackBerry Balance” element of the operating system makes it easier for users to separate their work life from their personal life by allowing them to sort and switch fluidly between two different menus (Liedtke, 2012). RIM invested a lot of effort into the camera function, as well, which will allow the user to go back several frames before the picture was taken to ensure the perfect shot in case the subject blinks (Liedtke, 2012). All of these new features should help meet the business and personal needs of RIM’s customers. The release of RIM’s new product is still months away, however, the preview for the device shows promise and gives the company’s future some hope. Operating under a structural framework, RIM addressed the issues brought forward by their customers, made improvements based on their clients’ needs, and as a result, RIM is “convinced this platform will shape the next 10 years as profoundly and as positively as BlackBerry shaped the last decade," proclaimed Heins (Liedtke, 2012, para. 17). Conclusion According to a recent report on Wall Street Journal Live, RIM’s shares soared almost 17% in September 2012 after the BlackBerry 10’s demonstration (Scaggs, 2012). Research In Motion is also up to approximately 80 million subscribers worldwide, which is an increase of THORSTEN HEINS two million customers since early June (Liedtke, 2012). RIM overcame the adaptive challenge that plagued their company only months ago. Heins operated under certain assumptions that fundamentally support the structural frame, such as: “Organizations exist to achieve established goals and objectives. Organizations work best when rationality prevails over personal agendas and extraneous pressures. Structures must be designed to fit an organization’s current circumstances (including its goals, technology, workforce, and environment). Problems arise and performance suffers from structural deficiencies, which can be remedied through analysis and restructuring” (Bolman & Deal, 2008, p. 47). Through Heins’ leadership influenced by the structural frame, the employees at Research In Motion are working toward a realistic goal, and heading in the right direction. Heins listened to RIM’s supporters and kept what the company was doing well, while he acknowledged the areas that they lagged behind. The new BlackBerry 10 integrates those features and hopes to increase productivity and provide some entertainment for users so that they no longer need to carry two devices to meet their business and personal needs. Thorsten Heins took one step at a time up a mountain, and due to his wise choices, can see success from the summit. 6 THORSTEN HEINS 7 References Bohn, D. (2012, September 25). The verge. Retrieved from http://www.theverge.com/2012/9/25/3406824/rim-ceo-thorsten-heins-clear-shot-numberthree Bolman, L., & Deal, T. (2008). Reframing organizations: Artistry, choice and leadership. (4th ed.). San Francisco: Jossey-Bass. Drath, W. (2001). The deep blue sea: Rethinking the source of leadership. San Francisco, CA: Jossey-Bass. Lencioni, P. (2002). The five dysfunctions of a team: A leadership fable. (1st ed.). San Francisco, CA: Jossey-Bass. Liedtke, M. (2012, September 25). Blackberry maker plants seeds for comeback attempt. Retrieved from http://bigstory.ap.org/article/ceo-blackberry-maker-makes-case-comeback Marlow, I. (2012, May 24). RIM CEO Thorsten Heins: 100 days into the toughest job in corporate Canada. 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