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Transformation by numbers
The term 'Transformation' is becoming one of the favourite buzzwords of our industry. Why? What compels business leaders to decide that transformation is necessary? And how does one go about transforming a telco?
Ask any analyst about strategic drivers in telecommunications and the answers will probably mention convergence, new products, technology, IP, customer service, competition and regulation. There is no doubt that all telcos face change on many fronts, and indeed all successful operators embrace this in their strategic planning process that plots how best to respond to the forces of change and drives this through to operational reality.
But there are occasions when this isn't enough, when the goal requires so much change that an incremental approach simply won't work. Such goals tend to be of epic scale with equally dramatic terminology, e.g. "survival" or "quest for greatness". And such goals demand a correspondingly proportioned strategy that probably encompasses changes in organisation, governance culture, individual conduct, processes, products and technical infrastructure - all at once!
Such is the agenda for Transformation. It is a quantum step beyond strategic change management.
At the start of a consulting engagement, a CEO told BT Telconsult "I know I need to transform my company, but I don’t know how…"
In these situations, the consulting team's 360° analysis can map out the agenda for change, using a verbal language for recommendations, strategies and plans, but also using a numerical language to diagnose the case for transformation and communicate the potential effects of transformational strategies in measurable terms. The following chart shows a typical numerical statement of the need for transformation (declining profitability shown by the red line) and the forecast benefit of implementing transformation plans (the blue line).
Other examples may focus more on transforming revenues or transforming costs, but in all cases the numerical expression forms an important validation of the decision to pursue a transformation. In turn it becomes a prominent indicator on the "dashboard" of the implementation programme, which communicates progress to stakeholders and shows how the delivered benefits of the programme are fulfilling the transformation goals.
Finally, as few telcos have the capacity to manage change on such an epic scale, it is almost certain that most will require external help to plan, organise and manage it. The above chart (or equivalent) can form the basis of contractually significant key process indicators (KPIs) to help assure senior stakeholders that the third party is committed to implementing the transformation and producing the desired results.
BT Telconsult can help telcos transform by:
1. Identifying the compelling verbal and numerical case for transformation
2. Detailing a set of strategic transformation plans, ready for implementation
3. Managing the transformation implementation, including results-driven rewards.
For further information, please contact your account manager and see our website at www.bt.com/telconsult.
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