Introduction
In September 2011, Verizon was faced with colossal decisions on moving forward as an organization and overcoming new challenges. The organization transformed from a Baby Bell to a market leader during a period of rapid technological changes, market growth, and regulatory amendments. Presently these changes require Verizon to innovate operations, structure, vision, and culture. The decisions made will be the compass for Verizon’s future.
Initial Conditions
The global telecommunications industry has been drastically shifting from “analog, landline, narrowband to digital, wireless, broadband and, more recently, toward smartphone and machine-to-machine” (Kanter 2). This quote highlights …show more content…
Verizon acknowledged this shift and successfully developed the industry’s first mobile-based distribution system, which allowed users to download games, ringtones, and videos – driving revenue. While historically focused on offering basic telecommunication services, Seidenberg realized the need to venture in adjacent complementary industries including GPS-enabled devices, navigation, games, and music. However, this success was quickly overshadowed by the threat of the Apple iPhone - introduced in June 2007.
In response to this market-changing event Seidenberg explored multiple options but concluded that they internally did not have the competencies to build a competitive device. Instead he championed innovative partnerships with Google and Motorala. Seidenberg implemented policies, Tiger Teams, system alignments, best practices, and accountability structures for all three partners. Verizon successfully overcame historical resistance to partnerships and sharing proprietary information. “In a departure from tradition” this internal cultural change led Verizon to a successful launch of the Droid (Kanter …show more content…
The Vodafone relationship would help accelerate change and take wireline and wireless globally “through a common set of products and features” (Kanter 12). Vodafone, operating 60% of its business in Europe, is a clear partner with knowledge of the unique regulatory environments in potential global markets. Lastly, McAdam must push forward with vertical integration and a structure that focuses on major customer types, product, and solutions.
It is critical that McAdam implement these recommendations in the scope of Kotter’s Change Model. While past efforts have conveyed goals, communicated a vision for change, and formed coalitions – they have not created enough urgency (Step 1, Appendix A). McAdam must clearly convey the importance of cultural change and implications of failure. By doing so he will develop a sense of urgency around the change and help motivate employee