Sharechat Logo

Telecom spells out its vision

Wednesday 22nd December 2010 5 Comments

Text too small?

Telecom's senior executives have cut up their credit cards, says chief executive Paul Reynolds, who is calling for a cultural change at the company, while signalling job losses, over the next three years.

"The entire executive has cut up their credit cards, including myself," Reynolds tells staff in the December issue of the company's magazine.

In the article he spells out a need for change during the next three years to deal with a harsh reality of declining revenues. Telecom was targeting at least $100 million of savings in capital and investment programmes, he said.

His vision is of a customer-focused organisation that works together.

"No more developing and delivering projects in silos that may not benefit the business as a whole," he said.

By 2013 Telecom will have chosen markets it has a competitive advantage in, its processes will be simpler, its technology will be better and it will have halved the amount of capital it now spends.

"Our overheads will have decreased. There will be fewer people working in the business," Reynolds said.

He did not spell out how many jobs will go and he said natural attrition would account for some of the losses.

"We will be letting people know exactly how they will be affected as soon as we can; as soon as we know," he said.

This was not just another Telecom change process, it was a brave and ballsy plan, he said.

Staff are being told to hold meetings in the company's new $280 million headquarters in Auckland, rather than at venues off base.

The number of company credit cards would be cut to 1000 from 3500 in coming months.

The chain of accountability would be clearer in future.

"We've got poor accountability, we're siloed in our decision making, and our core processes and operations aren't working well enough," Reynolds said.

The company was already centralising group support functions, including human resources, legal and communications.

"We can't specify at this stage exactly which parts of the business will grow and which will shrink," Reynolds said.

He told employees that it was vital that the company improve its share price and only a concerted effort by all to change the fundamentals of the business would do this.

 

NZPA



  General Finance Advertising    

Comments from our readers

On 22 December 2010 at 3:45 pm jp said:
Mr Reynolds you good bugga you, How can you afford to go without your credit card? Your poor salary alone is more than the GDP of some countries. Many people in NZ will work their lifetime to receive the equivalent you receive in a year. Mr Reynolds, with Xmas upon us, how about you donate 25% of your salary to the various city missions around NZ. You will really show to all that you are in fact giving up something? At the moment you and your fellow executives are a joke!
On 22 December 2010 at 3:53 pm DS said:
"We can't specify at this stage exactly which parts of the business will grow and which will shrink," Reynolds said. I can specify or at least speculate which parts will grow, legal & accounting,. Legal to deal with all the claims of poor service, accounting to deal with all the expense claims put in by Mr Reynolds & "The entire executive”. These guys will want their expenses repaid the day they submit them. So they cut up the corporate card, ‘just charge it on your own card, enjoy the fly buys and frequent flyer points etc’ the card gives you, those are call perks of the job for using your own card. Why do these chaps on the big bucks think they can outsmart everyone in NZ. What a tosser. Another reason why I will be elaving Telecom at the end of the Month.
On 22 December 2010 at 10:01 pm C. King said:
To ds. When you leave Telecom at the end of the month, remember do not call any Telecom number,as without Telecom you would not have any phones. Whatever system you use' there equipment will be in some part of Telecoms. ck.
On 23 December 2010 at 9:17 am JOHN said:
I did know that the chief executive was getting a fat pay, but I was really shocked to know that apart from that he was also having an added privilege of using a credit card. I am still at a loss trying to understand, what is Paul doing that is so very outstanding to be paid so much, which is the equivalent of several thousands of Kiwis put together. The Company's results too have not been very outstanding as a result of his appointment. Of course there is a good excuse 'Government Regulation. If that's the case then how does the company and its share / stake holders justify his existance? Also, Are there no Kiwis in NZ who have the similar management calibre to replace a guy who has been called all the way from England to take up this challenging position?
On 4 January 2011 at 9:15 am Jeff said:
To JOHN. No, sorry. Mr Reynolds is internationally acclaimed with previous CEO experience. All our equivalent people have moved on to better things: they wouldn't even bother with Telecom NZ.
Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report
Wellington International Airport Ltd (“WIA040”) - Maturity
Devon Funds Morning Note - 18 July 2024
CNU - Commerce Commission releases draft Price Quality decision
Precinct FY24 Annual Results and Webcast Details
Scott Technology appoints new CEO