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A Strong Market Culture is the DNA of Profitable Businesses

TELSTRA CASE STUDY
The CFO leads cultural transformation and acts as a guiding light for the whole organization. “I set out to transform the Finance Group into a support group that would create new value, provide top service and be seen to be valuable by its customers…..and deliver millions of dollars to the bottom line.” John V. Stanhope Chief Financial Officer and Group Managing Director, Finance and Administration, Telstra Corporation

THE CONTEXT
Telstra is a $25 billion Australian telecommunications and media services company. It ranks as 11th largest Telco worldwide in terms of market capitalization. It provides fixed line, mobile and broadband Internet services. Its cable TV, online directory and Yellow Pages books form the basis of its media services. Telstra’s cultural legacy is one of a government owned monopoly that has progressively adapted to an increasingly deregulated, commercial and competitive environment. The Finance and Administration (F&A) Group, a corporate support function of more than 2400 people has operated in a company that has always held strong market positions in all of its Australian markets. The company has undergone many changes over the years to become more customer-focused, but it is still known in several market segments for its poor customer service. The Chief Financial Officer (CFO) wanted to change this, starting within his own group. A “customer service” focused cultural change, known as value service culture (VSC) was initiated in June 2008. This case traces the value service cultural change over its first 24 months to June 2010.1

1

 The
 CFO
 and
 members
 of
 the
 senior
 leadership
 team
 were
 interviewed
 by
 MarketCulture
 several
 times
 over
 the
  course
 of
 the
 2
 year
 journey.
 Ongoing
 discussions
 took
 place
 with
 the
 CFO
 throughout
 the
 period.
 Internal
  documents
 were
 used
 to
 identify
 the
 sequence
 of
 initiatives
 undertaken.
 Members
 of
 the
 MarketCulture
 team
  were
 engaged
 at
 the
 start
 and
 participated
 in
 many
 of
 the
 major
 events
 along
 the
 way.
 
(800) 817-8582 ● Monterey ● Boston ● Sydney ● www.MarketCulture.com © MarketCulture Strategies. All Rights Reserved. 2010

A Strong Market Culture is the DNA of Profitable Businesses

WHAT WAS THE PROCESS?

A summary of the culture enhancement and change process is summarized in Figure 1. Figure 1: The Culture Change Process The Telstra culture change process moved through the four phases, each having specific steps. 1. Planning for Success: Included a culture assessment and a Culture Change Roadmap 2. Culture Transformation: Involved upskilling, process reviews, short term wins and forums for sharing of best practices 3. Embedded Culture: Making it Stick with best practice workshops and new performance review systems and processes 4. Continuous Monitoring and Revitalization: Culture measurement and profit gains

PHASE 1: PLANNING FOR SUCCESS
A culture audit is an essential first step to planning the cultural change effort. The advantage of this is to gain more in-depth insight into the culture, build relationships and additional buy-in, reduce the risk of resistance to skill development and culture change, identify leaders that can be change champions and provide key input into an Assessment and Implementation Plan. This is also a time for the executive leader to craft and refine the vision, goals, strategy and priorities. This needs to have within it a sense of urgency which can be easily communicated and (800) 817-8582 ● Monterey ● Boston ● Sydney ● www.MarketCulture.com © MarketCulture Strategies. All Rights Reserved. 2010

A Strong Market Culture is the DNA of Profitable Businesses

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