How should telecom operators manage through an economicdownturn?
The financial markets took the telecom markets on a wild ride lastweeks. Who knows which direction we will move this week butmost believe we are headed for an extended downturn in theeconomy which will put companies, large and small, at risk.While no one knows how long or deep this downturn will be, there isa clearly appropriate strategy - prepare for the worst and seize thebest opportunities when they come. With this I would like to sharewith you mmC GROUP’s perspective on the actions that telecomoperators need to take in the coming quarters.We see six main lessons learnt and key challenges that telecomoperators should address in the coming financial slow down times. These cover both short-term reactions and mid term organizationtransformation measures that can be seen in the following slide:(SLIDE)If we have to conclude with some recommendations on howoperators should respond, he is what we’d say:
– Operator are constantly recommitted toimproving the quality of service that theydeliver to customers. Byputting the Customer First in how they think about the business,they will strengthen the value delivered, secure theircurrentbusiness and provide a platform to grow on. They have to put inplace metrics, clarified processes and bring a spotlight to everythingtheydo at the customer interface. In an environment where everycent counts, customers will be expecting even greater value sotelecommunication operatorsmust deliver exceptional service. Thisshould remain a top objective.
- One thing that has become apparent to most of the operators in where we are currently working is that theyareworking on too many things and battling on too many fronts.One of the root causes is the state of our integration (acquisitions)and de-integration. This is hard work and living with multiple coreprocesses means confusion and extra resources. In most of thecases, operators have to redouble theirefforts to complete thiscritical work in a timely way. That doesn’t mean they aren’t workhard enough — they just have to focus theirefforts, make 80/20tradeoffs and quick decisions, engage help where needed and deferless pressing work.
- While my clients would all love to growtheirbusiness aggressively, now is not the time. Fixed and mobileoperators shouldbe focusing on retention and selling new services toexisting customers. They are not going to stop developing newcustomers but should be deferringplanned additions to sales staff