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
Kiwi Property FY24 annual results announcement date
MFB - FY24 Results Announcement Date and Briefing Details
AIA - Announces books closed for retail bond offer
May 8th Morning Report
NZ-UAE free trade on the table
ANZ - 2024 Half Year Results Documents
FWL - Foley Wines Limited 2024 Harvest
IKE Closes Major Multi-Year Subscription Deals
AIA - 2024 Macquarie Australia Conference Overview of AIA
Devon Funds Morning Note - 06 May 2024