Sari Baldauf: “We need to speed up and do more and talk less”

"My first job with profit responsibility about 35 years ago was at Nokia Cellular Systems working with mobile phone networks. At that time, the goal was to increase the turnover of 100 million tenfold - because the market grew like that. The goal was so big that you couldn't do it by small improvements."

During her long career, Sari Baldauf has mainly worked in large companies, for example as Nokia's chairman of the board and deputy CEO. Today, Baldauf acts as an advisor to medium-sized companies and startups.

We have talked about the world changing for a long time, Baldauf reminds. However, now the world is changing in such an unprecedented way that it requires a new kind of rhythm, courage and strategic clarity from Finnish companies.

Baldauf asks: are Finnish companies on the pulse of change?

"How well do we feel the pulse of market information globally? Is our insight of our competitive edge at the right level when the rhythm is this fast? Are we using enough data in goal setting and tracking?"

And secondly: do we understand what drives the market?

For many companies, the 20 percent growth target now seems big, even terrible, says Baldauf.

"However, it is too little if the market grows by 70 percent."

Does your growth have a clear direction?

The growth group's recent study, An Alternative Future of Finnish Growth, compared Finnish, German and Swedish medium-sized companies with a desire for growth. The comparison highlighted strategic clarity – or rather the fact that the strategy is often not very clear in Finnish medium-sized companies.

Baldauf emphasises that growth cannot occur without a clear direction.

“What do we want to do? What are we going to do? It is terribly difficult to grow if the strategy is not clear.”

Finland is plagued by a desire for security and an aversion to risk, says Baldauf. We would rather defend the old than set out to build new operating models for the future.

Baldauf emphasises systematic work and involving the organisation.

“Strategy without implementation is a hallucination.”

In order to implement a strategy, a company must identify the areas where it must succeed in order to reach its goal and then create implementation plans for them, with continuously monitored metrics. According to Baldauf, a good number of key programs is 3–5: not too many, but not too few either.

Sometimes it is worth promoting a new focus area to its own business unit so that it gets included on the management team’s agenda.

“Even small wins need to be celebrated, as it builds energy and strengthens the entire organisation’s commitment to strategy and growth.”

Growth does not happen without resources. Baldauf reminds us that sometimes difficult strategic decisions also need to be made.

“How do you finance growth, when basic operations need resources to run? Sometimes you have to think about reallocating resources and identify where to free up money and people to build growth.”

Baldauf’s message to Finnish companies is clear. We need to speed up and be ready to renew ourselves.

Complaining eats away your belief in the future

The general atmosphere in Finland worries Baldauf. A negative attitude and getting caught up in problems are dangerous because they do not promote taking action. They also erode young people's faith in the future and their trust in society. After all, we have a lot of expertise and good things to build on.

That is why Baldauf has made a personal decision. He does not complain.

"I decided a couple of years ago that I will not complain. If something is wrong, I think about what I can do about it, either myself or together with others."

There is a solution to all problems, he reminds us.

Baldauf sees Finland as a machine in which many gears have shifted downwards.

"That is why it is important that growth companies and future-oriented and positive people make sure that the gears also start shifting upwards."

In Finland, it is believed that whoever is aiming too high, will burn and fail. Baldauf believes that we must now indeed reach higher. It is also permissible to make mistakes, but it is not worth making the same mistake twice.

“The English word fail means to me first attempt in learning. That's how it should be viewed.”