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For BSNL internal circulation only E2-E3 MANAGEMENT ASPIRATION DRIVEN TRANSFORMATION

Chapter01.Aspiration Driven Transformation

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Page 1: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

E2-E3

MANAGEMENT

ASPIRATION DRIVEN

TRANSFORMATION

Page 2: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

WELCOME

This is a presentation for the E2-E3 MANAGEMENT

Module for the Topic: ASPIRATION DRIVEN

TRANSFORMATION

Eligibility: Those who have got the Upgradation from

E2 to E3.

This presentation is last updated on 17-03-2011.

You can also visit the Digital library of BSNL to see

this topic.

Page 3: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

Agenda

Telecom Business Environment

Meeting Challenges of Environment

BSNL Aspiration Driven Transformation

Page 4: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

BSNL Vision - 2007

To become the largest telecom Service Provider in

Asia.

Page 5: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

Mission - 2007

To provide world class State-of-art technology telecom

services on demand at competitive prices.

To Provide world class telecom infrastructure in its

area of operation and to contribute to the growth

of the country's economy

Page 6: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

Dr. Jack Welch Ex CEO of General Electric has

rightly said

If the change outside the organization is faster than

the change within .

The end is in sight

Mission - 2007

Page 7: Chapter01.Aspiration Driven Transformation

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Telecom Growth in India

New Economic Policy 1991

Opening up of Telecom service sector (Mobile –metros)

National Telecom Policy 1994

Telecom, key for development

Inadequacy of public resource to meet demand

Private sector to supplement Govt.

Provide world class telecom service at affordable cost

Page 8: Chapter01.Aspiration Driven Transformation

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Establishment of TRAI (1997)

New Telecom Policy (NTP 99)

– Transition from fixed license fee to revenue share

– Introduction of free competition

– Technology neutral licenses

Creation of BSNL (2000)

Establishment of TDSAT (2000)

Page 9: Chapter01.Aspiration Driven Transformation

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Opening of National & International long distance

Limited mobility allowed to Basic Services (CDMA

spectrum allotted to Basic Service Operators)

Launching of mobile service by BSNL (2002)

Establishment of USO Fund

Page 10: Chapter01.Aspiration Driven Transformation

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Unified Access Service License

Unified License Regime and Technology neutral era

(Nov 2003)

Broadband policy (2004)

Number Portability

MVNO

Page 11: Chapter01.Aspiration Driven Transformation

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Fixed-mobile substitution and convergence

Advancement of access technologies

Convergence between telecom, media and devices

Next wave of growth

Transformation in operations and technology

Voicegoing wireless

Broadband everywhere

Blurring boundaries

Next Billion Consumers

Telco factory

1

2

What will the killer app in India be?India's digital generation

3

5

6

7

Universal mobile telephony and dataUniversal mobile

4

Page 12: Chapter01.Aspiration Driven Transformation

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Wireline Market Share Wireless Market Share

BSNL 75.48 BSNL 11.83

Bharti Airtel 8.23 Bharti Airtel 22.09

Reliance Telecom 3.17 Reliance Telecom 17.62

MTNL 9.44 Vodaphone Essar 17.24

Others 3.68 Tata Indicom 11.20

Idea 11.02

Aircel 6.18

MTNL 0.89

Others 1.93

Sub: Market Share of Telephone Operators in India as on 28.02.2010

Note: Others means Tata Indicaom 3.08%, HFCL Infotel

0.46% and Shyam Telelinks 0..14%

Note: Others means BPL 0.49%, HFCL Infotel 0.06%,

Shyam Telelinks 0.62%, Uninor 0.63% and Stel 0.13%

Wireline Market S hare

B S NL

76%

B harti

Airtel

8%

R elianc e

T elec om

3%

MT NL

9% Others

4%

Wireles s Market S hare

R elianc e

T elec om

18%

Vodaphon

e E s s ar

17%

T ata

Indic om

11%

Idea

11%

B S NL

12%

Airc el

6%

MT NL

1%

O thers

2%

Page 13: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

BSNL financial performance

Page 14: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

BSNL relative performance

Operator Revenue* (in Rs. Crore)

*from web sources/V&D 2006-07 2007-08 2008-09

BSNL 39,715 38,046 35,811

Bharti Airtel 17,888 26,436 36,962

Reliance Comm 14,468 18,638 22,941

Vodafone 10,565 15,477 22,224

Tata Communications 8,857 8,297 9,963

Page 15: Chapter01.Aspiration Driven Transformation

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BSNL revenue breakup

BSNL Revenue Financial Year vise in Rs Crore

Service 04-05 05-06 06-07 07-08 08-09

Landline 21853 20421 16605 12668 9173

Mobile 3792 6433 9264 10579 9828

WLL 347 481 568 618 636

Broadband 4 162 514 916 1756

Circuits 421 530 512 757 960

Receipt from

other

operators

N.A 6972 6146 5655 4304

Page 16: Chapter01.Aspiration Driven Transformation

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QUESTIONS ?

Are all the employees motivated ?

Are mgmt practices conducive to growth ?

Is the Vision statement aligned to reality?

Do all the employees know Vision ?

What fate is expected in next five years?

What makes other operators grow faster?

Is organ structure too bureaucratic ?

Page 17: Chapter01.Aspiration Driven Transformation

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Answer

Change

Page 18: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

Individual Change

Change in the job content

Changes in status

Changes in location

Redundancy

Change in social grouping

Change in conditions of employment

Change in people’s belief values and assertions.

Page 19: Chapter01.Aspiration Driven Transformation

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Individual Resistance

Economic

Factors Fear of

Unknown

Habit Security

Resistance

Selective Information Processing

Page 20: Chapter01.Aspiration Driven Transformation

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Organizational resistance

Structural Inertia

Limited Focus Threat to establishedof ChangeResource Allocation

Threat to established

Power relationship Group Inertia

Threat to expertise

Organizational Resistance

Page 21: Chapter01.Aspiration Driven Transformation

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Ways to overcome resistance

Education and communication

Participation

Facilitation and support

Negotiation

Manipulation and co- operation

Coercion

Page 22: Chapter01.Aspiration Driven Transformation

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Change ready organization

First, effective leadership is in place at all levels in the

organization.

Inept leaders are deterrents to organizational

performance and ability to change.

Page 23: Chapter01.Aspiration Driven Transformation

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A company may have excellent pay, benefits, and

employee-friendly policies, but if incompetent leaders

are in place, its employees will not be motivated to

change.

Page 24: Chapter01.Aspiration Driven Transformation

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Second, employees are personally motivated to

change.

Change happens when people are sufficiently

dissatisfied with the status quo and are willing to

make the effort and accept the risks involved in doing

something new.

Page 25: Chapter01.Aspiration Driven Transformation

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Third, the organization is accustomed to working

collaboratively.

Effective change demands collaboration between

willing and motivated parties.

Page 26: Chapter01.Aspiration Driven Transformation

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Mckinsey 7S model for success

Strategy:

The plan devised to maintain and build competitive

advantage over the competition.

Structure:

The way the organization is structured and who reports to

whom.

Systems:

The daily activities and procedures that staff members

engage in to get the job done.

Page 27: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

Shared Values:

The core values of the company that are evidenced in

the corporate culture and the general work ethic.

Style:

The style of leadership adopted.

Staff:

The employees and their general capabilities.

Skills:

The actual skills and competencies of the employees

working for the company

Page 28: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

StructureTechnology

People

What are the Change

Options ?

Page 29: Chapter01.Aspiration Driven Transformation

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Change Methodology

Defrost a hardened status quo

Establish a sense of urgency

Create the guiding coalition

Develop a vision and strategy

Communicate the change vision

Introduce new practices

Page 30: Chapter01.Aspiration Driven Transformation

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Empower a broad base of people to take action

Generate short term wins

Consolidate gains and producing even more change

Ground the changes in the culture, and making them

stick

Institutionalize new approaches in the corporate

culture

Page 31: Chapter01.Aspiration Driven Transformation

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Past change experience

Introduction of Electronic exchanges

(Strowger/Crossbar scrapping)

Computerization of TRA

Computerization of 197

Introduction of CDTMX (computerized Trunk

booking service)

Corporatisation of DTS/DTO (DoT)

Page 32: Chapter01.Aspiration Driven Transformation

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Past change experience

Absorption of DoT employees

Long stay transfer policy

Introduction of Franchisee concept

Outsourcing of call center (9400024365)

Recruitment of Management Trainee

Page 33: Chapter01.Aspiration Driven Transformation

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Present Approach of BSNL

M/s BCG appointed as Consultant , conducted an

internal survey

Lack of shared vision among employees

Inability to see big picture

Too broad structure

Lack of documented role, responsibilities and

accountability matrix left to individuals to define it as

per past experience, practices and their wisdom.

Legacy processes: The way work got processed

through legacy processes lead to inefficiencies and

delays.

Page 34: Chapter01.Aspiration Driven Transformation

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BSNL-SWOT

Feature Strength/Weakness/Opportunity/Threat

Valuable assets-copper, fiber, buildings

etc.

Strength

Declining handset costs Opportunity

More Competitors Threat

Large Talented manpower Strength

Low employee motivation &

involvement

Weakness

Declining Tariff due to competition Threat

Growing market of mobile connections Opportunity

Age profile of manpower Weakness

Page 35: Chapter01.Aspiration Driven Transformation

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Roadmap identified

Develop a shared aspiration for BSNL’s future.

Articulated a well-defined strategy to path of growth

and profitability.

Created a 5-year business plan outlining a range of

potential outcomes.

Develop a thorough sales & marketing strategy for

each of the core businesses (Landline, Mobile,

Broadband, enterprise etc.)

Page 36: Chapter01.Aspiration Driven Transformation

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Outline key implications on operations and customer

service to support various businesses. (Business

Process reengineering)

Define the right organizational model(Restructuring)

Initiate implementation of initiatives in the form of

Pilots

Page 37: Chapter01.Aspiration Driven Transformation

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Project Shikhar

BSNL Shared Aspiration-2013

Be the leading telecom service provider in India with

global presence

Create a customer focused organization with

excellence in sales, marketing and customer care

Leverage technology to provide affordable and

innovative products / services across customer

segments

Provide a conducive work environment with strong

focus on performance

Establish efficient business processes enabled by IT

Page 38: Chapter01.Aspiration Driven Transformation

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Project Shikhar Implementation

Accelerating growth of mobile business

– Building extensive and strong distribution and

retail footprint

– Innovation in pricing

– Acceleration of 3G sales to capitalize on first

mover advantage

– Improving effectiveness of VAS

Page 39: Chapter01.Aspiration Driven Transformation

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Leading and shaping the fixed access business

– Addressing gaps in sales & distribution

– Innovation in product and pricing

– Building capabilities and offering on content and

VAS

– Improvement in service delivery and provisioning

times

Page 40: Chapter01.Aspiration Driven Transformation

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Project Shikhar Implementation

Growing the enterprise business and becoming provider of

choice by

– Establishing key account management

– Innovation in products and solutions

– Strengthening service delivery and service assurance

Expanding into new businesses

– Developing the infrastructure sharing business

– Monetise other embedded assets

Page 41: Chapter01.Aspiration Driven Transformation

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Project Shikhar Implementation

Focusing on financial assurance

– Fixing billing leakages and improving collection

– Reducing operating costs

Improving customer service levels Improving

effectiveness of call center and CSCs

– Building new areas such as online

Page 42: Chapter01.Aspiration Driven Transformation

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Project Shikhar Implementation

Implementing operations improvement initiatives

– Increasing service levels by reducing downtime and

improving turn-around times

– Reducing operating costs where feasible

Page 43: Chapter01.Aspiration Driven Transformation

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Project Shikhar Implementation

Implementing new organisation structure across the

organisation – head office, circle office and regional

office

– Defining roles & responsibilities and key performance

indicators in the new structure

– Enhance effectiveness of new structure by appropriate

top-management MIS and planning and budgeting

Focusing on implementing critical HR priorities

– Recruitment at DGM, MT and JTO/JAO levels

– Capability development

– Defining appropriate incentive management program

Page 44: Chapter01.Aspiration Driven Transformation

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Implementation Teams

Project Sponsor:

Director/Executive Director in the Corporate Office

responsible for providing overall guidance and

direction, monitoring overall execution results,

providing policy inputs and

resolving key issues

Page 45: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only

Project Champion:

CGM/PGM/GM level officer in the Corporate Office

responsible for

driving implementation of the project/initiative on a

country-wide basis,

monitoring overall execution results,

preparing policy guidance,

resolving key issues on a day-to-day basis and

communicating on all projected related issues.

Page 46: Chapter01.Aspiration Driven Transformation

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Project Coaches: GM/DGM level officers in the

Corporate Office responsible for day-to-day

execution of the project/initiative,

working with Circle and SSA level implementation

teams,

monitoring results at Circle/SSA level,

trouble-shooting issues on a day-to-day basis and

supporting Project Sponsors and Project Champions

take the right policy decisions.

Transformation management office

Page 47: Chapter01.Aspiration Driven Transformation

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Pilot Projects

Vijay

Udaan

Dosti

Kuber

Sanchay

Page 48: Chapter01.Aspiration Driven Transformation

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Conclusion

Project Shikhar is a strategic step to regain lost glory

Change in people, process and structure has to be

accepted

100% cooperation and contribution of all is must

Page 49: Chapter01.Aspiration Driven Transformation

For BSNL internal circulation only