Alberto Torres (ex-Nokia strategy chief): Every decision was rational. The company fell anyway.

In 2008, Nokia was still posting some of the best numbers in its history.

The iPhone had been on sale for over a year.

Alberto Torres ran corporate strategy at Nokia while it happened. He argued for the radical path and left in early 2011, convinced the company had picked the wrong one. His new book, The Z-Curve, answers the question he has carried since: how does a company full of smart people, open debate, and visible evidence still fail to turn?

The question is getting urgent again. AI touches nearly every kind of cognitive work, which by Alberto's read makes it probably the broadest disruption yet.

🎙️ Guest

Alberto Torres arrived in Silicon Valley as a computer scientist in the late eighties and went on to help found McKinsey's office there. Then he crossed to the other side of the table: seven years at Nokia, 2004 to 2011, including as head of corporate strategy, through the spectacular growth and the start of the fall. Today he is a senior advisor at McKinsey, sits on Adobe's International Advisory Board, and teaches at IE Business School in Madrid. The Z-Curve is the book where he finally drew what he saw.

🔥 Key Insights

✅ Best quarter ever. One year after the iPhone.

Inside Nokia, the iPhone was an American niche that few would pay 300 euros for. Apple's share was climbing, but only in a corner of the numbers, and Nokia was growing faster everywhere else. The head of sales answered the radicals plainly: best quarter in our history, don't mess with it. By the time a threat is obvious in the numbers, the options are mostly gone.

✅ The company that forgot how to invent

Alberto points to Steve Jobs' lost interview about Xerox: young companies are built by product people, and success hands power to the people who sell what already exists. Do that long enough and invention quietly leaves the building. Johan hears the echo from CEOs today: years of cost discipline trained a generation of managers for exactly the wrong moment.

✅ The quiet disruption that never kills anyone

Alberto sorts disruption into three kinds: total, like Nokia; partial, like e-books; and functional, the one that spares the companies but rewires the industry. Banking survived ATMs and digital payments, yet it consolidated hard and most banks are worth proportionally less. Out of that same payment infrastructure grew Visa and Mastercard, today worth more than any bank except JPMorgan.

✅ Not enough people slamming doors

Two weeks into the job, Alberto lost an argument with Jorma Ollila and closed the CEO's door a little too hard. Weeks later, Ollila pulled him aside: that was fine, we don't have enough people slamming the doors around here. Nokia had debate, and radical options were on the table. A company can argue freely and still never decide.

✅ Write the dissent down

When Netflix split streaming from the DVD business, customer bills jumped 60 percent overnight and the backlash was massive. The team had doubts and swallowed them; Reed Hastings had been right so many times before. His fix afterwards: on big decisions, every objection goes in writing. The stronger the leader, the more the room defaults to faith.

✅ Where your attackers will come from

Alberto's test for any leadership team: if you walked out today with 100 million to rebuild your business from scratch, what would you build? The answer maps where the attack will come from. His book lays out six responses, from disrupting yourself to migrating your skills, and incumbents very often default to the only one that cannot win alone: stalling.

▶️ Listen now. The Z-curve is already in somebody's numbers. Worth knowing the shape before it shows up in yours.