Académique Documents
Professionnel Documents
Culture Documents
May 2014
Effective Operational
Transformation: ACT now
to ACE the telecoms game
Authors
overview
Telco operators are today faced with a whole new breed of challenges borne
out of a fast-evolving and increasingly unfamiliar market environment.
In response, they implemented tactical solutions which have not proved
entirely sufficient. What is truly required is a root-and-branch review of the
organisation and complete, bottom-up, employee-inclusive transformation
so as to adapt to the changing needs of todays reality and not just deliver
another short-term fix.
This paper seeks to outline the operators requirements to thrive in this
environment by achieving agility, superior customer experience and efficiency
and the means to do so through all-inclusive, company-wide transformation.
Major challenges
Increased competition from telcos and other much more dynamic- players
Shorter and shorter lifecycles for Products &
Services
Key implications
Agility
Customer
experience
Efficiency
True excellence in
customer experience
is a must
Key implications
Traditional solutions
Agility
P&S pipeline
Customer
experience
Efficiency
'Integrated' customer-centric
programs
ROIC-focused budgeting
Asset sharing and consolidation
Smart sourcing
(e.g. vendor consolidation)
Bureaucratic legacies:
Apart from inter-departmental
segregation and uninvolved
employees, operators are
faced with intra-departmental
bureaucracy. The legacy processes
that remain from the telco 1.0
days have become a matter of
habit and remain obstinately
fixed. Challenging the way it has
always been done only happens
in instances of grave need and
the focus is on providing an
All-inclusive
Company-wide
All-inclusive
Company-wide
Transformation
participation and shifting
mind-set towards execution orientation. Top
management has an additional responsibility to maintain motivation and
momentum by clearly and consistently communicating its plans to the entire
organisation.
Company-wide
Transformation
initiatives. This does not necessarily mean that every initiative is applied to
every department. Rather, no department is revamped in isolation from
related functions. This process requires complex coordination between various
business units but can build deeper capabilities at a core level.
Transformation
Create accountability
Management
& DecisionMaking
Measures &
Objectives
'ACT'
Methodology
Mindsets &
Skills
Highly Technical
Methodology:
The implementation methodology for the transformation combines several
tools and systems, including systems automation and the development of
templates and tools. Applying this lever of transformation in one of our
Middle-Eastern telco clients involved significant transformation of procedures,
including:
Mapping processes to a customer lifecycle value chain
Defining clear objectives and differentiating factors for key processes
Developing an overarching automation strategy for effective
implementation and monitoring
Measures and objectives:
Process efficiency is of utmost importance in a transformation programme.
Various means can be employed to set and measure objectives and ensure
that the end goal remains on track and meets expectations, including:
Creating well-defined KPIs incorporating long-term successes
Developing dashboards that effectively track SLA/KPI progress
Ensuring consistent communication of status
Management and decision-making:
Incentives serve to keep employees motivated but are irrelevant if not aligned
to a sound governance model. Management should be pushed to assume
accountability across their spheres of responsibility, including:
Demarcating clear roles and responsibilities without being hierarchical
Defining clear guidelines for conflict resolution
Ensuring ownership and empowerment yet with clear escalation
matrices to optimise decision-making
Mindset and skills:
All of the above, in any transformation, aim to stimulate innate employee
potential. This can be maximised through personnel development, including:
Providing coaching and training to develop employee potential
Appointing mentors, role models and change champions at all levels to
propagate change
Communicating clearly and frequently to foster inclusion
Softer initiatives
10
The bottom-line
With the winds of change in the
telecom industry has come a storm
of new issues affecting operator
profitability. The typically-employed,
traditional solutions garner diminishing
traction among modern market
dynamics. Such reactive initiatives
are akin to using band-aids to hold
crumbling walls well-intentioned but
ineffective when what is truly needed is
a structural solution that addresses the
deep-rooted nature of the problem.
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East, Africa, Europe, Asia and Latin America. With more than 200 professionals, the group operates globally and covers the emerging and high-growth economies. Our unique combination of Management Advisory, Corporate Finance* and Investment Services*
creates unparalleled value for our clients, investors and business partners.
Advisory: Delta Partners advisory team leverages its industry expertise, unique intellectual capital and 360-degree view of the TMD
industry to help its clients solve their most-challenging strategic questions. We work with global and regional telecom providers, digital
players and other TMD clients on a wide range of topics, from the more strategic to the eminently operational.
Corporate Finance*: Delta Partners provides corporate finance services and has been involved in several buy-side and sell-side telecom
transactions in the region. As true industry specialists, we offer a differentiated value proposition to investors and industry players in
the region. Delta Partners actively leverages its close link to its private equity arm to access the investor community as well as top-level
financial talent.
Investments*: As a fund manager, Delta Partners manages an USD80 million private equity fund, targeting investment opportunities
in the TMD space in high growth markets. The focus is the Middle East, Africa, Eastern Europe and Emerging Asia. Delta Partners
private equity fund leverages the groups unique TMD industry expertise to create value for our investors throughout each stage of the
investment cycle, from deal sourcing to supporting portfolio companies in driving value extraction.
Delta Partners delivers tangible results to clients and investors through its exclusive sector focus on Telecoms, Media and Digital with a
unique approach that combines strategic perspectives with a hands-on pragmatic approach.
Delta Partners Corporate Finance Limited and Delta Partners Capital Limited are members of the Delta Partners Group of companies and are authorised and regulated by the DFSA.
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