Telkom has turnaround plans

jes

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Telkom has turnaround plans

Telkom has big plans to turn the company around – which includes restructuring and retrenching many management staff members and specialists.
 
Yesterday I was on a call for 1h8min to cancel a simple weekender package.... was on hold for 42 minutes..... now you retrenching skilled staff and let the majority unskilled run the company.... :confused:
 
Haven't they tried that before.... and their service went form bad to worse?

Telkom Wake UP!!!! Not even a donkey hits it head on the same rock twice! STOP firing techies and sort out your service!
 
Sorry heard this all before, even as far back as 1999 when I still worked there...
 
Time to cancel my home telephone line. If they going to retrench staff the viable solution would be to cancel my telephone line. They don't need my money anymore.

The service definitely will deteriorize further - they should have never invested abroad on projects that failed but rather have kept that capital in South Africa. Also Seems like government doesn't want to bail them out anymore - money for new projects.

Instead of retrenching management staff - rather put that staff in a call centre or at more Telkom Direct shops.
 
Also Seems like government doesn't want to bail them out anymore - money for new projects.
Telkom has never been bailed out by Government and never will be. Government only own 40% of the shareholding so I am pretty sure that taxpayers will not gladly hand over their hard earned cash to the other 60% of the shareholders.

They are also no longer the only player in the market, so other telcos like neotel, Vodacom and MTN can easily step in and operate their infrastructure.
 
Telkom bails government out

There is a need for Telkom to rationalize their headcount and the company is bloated on the staff side but these retrenchment plans never work and almost always amount to burning down the house because you can't afford the rates and taxes - you reduce your costs but you also destroy your capital. Often its simply confusing accounting with planning - retrenching staff makes it look like you have reigned in costs because the retrenchment costs are once off and fall in the same vain as other restructuring and capital acquisition. I've never throught that the once off cost of bashing down a wall is really a benefit.

In the broader picture Telkom needs to be reducing staff and other players increasing staff and I really wish we could get some sitting around a table to accomplish a common set of practices for transferring staff within the industry so that Telkom skills can be planted into emerging telecoms players and funding an LLU team (that simply would need to be dominated by Telkom trained staff) could come into play.
 
New consultancy (Bain) - same old plan - cut costs, retrench staff. Same plan as previous consultancy!!

If it was Bain then a friend of mine has jumped ship without telling me....

Anyway, most of the staff should have seen this coming. Telkom isn't showing much growth, they have already tried to combine the fixed and mobile operations in order to improve efficiency and now they are pushing off their network to MTN. These retrenchments were coming, but typically telkom delayed until the very last moment, after they paid some consultancy millions to tell them exactly what they wanted to hear.
 
If it was Bain then a friend of mine has jumped ship without telling me....

Anyway, most of the staff should have seen this coming. Telkom isn't showing much growth, they have already tried to combine the fixed and mobile operations in order to improve efficiency and now they are pushing off their network to MTN. These retrenchments were coming, but typically telkom delayed until the very last moment, after they paid some consultancy millions to tell them exactly what they wanted to hear.
Agree, which makes it all the more puzzling why Telkom refused to allow around 1000 staff to leave last year when they offered voluntary packages. Now they want to retrench many of those ....
 
Paul, I take your point, and I've been at the receiving end of these vain exercises many, many times. You could also add the massive drop in morale, with a huge toll on individuals and the organisation. There will also be a type of paralysis until this is sorted. It's difficult to do open heart surgery whilst the patient is still walking around.

The flipside is to see Telkom as a massive system, expertly designed to actively resist change. You have to have spent time in the corridors there to appreciate how effectively they achieve that (and may still ...)

The only way to get change through is to break the system enough to ensure a level of pliancy (or com-pliancy). That's calls for a tough CEO, who must be sure he's doing the right thing. I fear the bunfights with the unions. It's pretty scary at Telkom Towers when there is lock down - even scarier when the metal gates stay open.
 
New consultancy (Bain) - same old plan - cut costs, retrench staff. Same plan as previous consultancy!!

I thought it was another company. The name is confidential. Few can afford them, but they have worked with big retail in SA before.
 
Paul, I take your point, and I've been at the receiving end of these vain exercises many, many times. You could also add the massive drop in morale, with a huge toll on individuals and the organisation. There will also be a type of paralysis until this is sorted. It's difficult to do open heart surgery whilst the patient is still walking around.

The flipside is to see Telkom as a massive system, expertly designed to actively resist change. You have to have spent time in the corridors there to appreciate how effectively they achieve that (and may still ...)

The only way to get change through is to break the system enough to ensure a level of pliancy (or com-pliancy). That's calls for a tough CEO, who must be sure he's doing the right thing. I fear the bunfights with the unions. It's pretty scary at Telkom Towers when there is lock down - even scarier when the metal gates stay open.
Remember that at this time it only impacts management and high level specialists - the bargaining unit will probably be impacted around October!! And then the fun and games will really start!
 
Paul, I take your point, and I've been at the receiving end of these vain exercises many, many times. You could also add the massive drop in morale, with a huge toll on individuals and the organisation. There will also be a type of paralysis until this is sorted. It's difficult to do open heart surgery whilst the patient is still walking around.

The flipside is to see Telkom as a massive system, expertly designed to actively resist change. You have to have spent time in the corridors there to appreciate how effectively they achieve that (and may still ...)

The only way to get change through is to break the system enough to ensure a level of pliancy (or com-pliancy). That's calls for a tough CEO, who must be sure he's doing the right thing. I fear the bunfights with the unions. It's pretty scary at Telkom Towers when there is lock down - even scarier when the metal gates stay open.
largely agreed but the real point here is that because of the expert design to resist change slashing headcount is likely to institute unintended consequences which are either unforeseen or outright damaging.

The restructuring of things and especially the retail and wholesale split (although retail isn't quite the right description) and the outsourcing of mobile network operations are a good part of breaking down the system and getting the sort of reductions needed but on the whole I fear there is a hell of a lot more that needs to be done - particularly to on the networking skills side of things
 
the right direction, difficult to do well. i wish them the best of luck. it would be swell if telkom managed to become an efficient competitor.
 
Bring LLU into the picture and raise your IQ a bit.

:D

8M3NK.png
 
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largely agreed but the real point here is that because of the expert design to resist change slashing headcount is likely to institute unintended consequences which are either unforeseen or outright damaging.

The restructuring of things and especially the retail and wholesale split (although retail isn't quite the right description) and the outsourcing of mobile network operations are a good part of breaking down the system and getting the sort of reductions needed but on the whole I fear there is a hell of a lot more that needs to be done - particularly to on the networking skills side of things
You would hope that they retain the right skills and potential to take them boldly forward to where they have not gone before.

But they have tied themselves into a selection criteria that is designed to force many of the older, experienced staff to exit the company via a retrenchment process. While it is true that some of them could be classified as dead wood, the selection criteria will take out many worthy employees as part of the collateral damage. Remember that they have to be consistent and may not deviate or make exceptions to attempt to retain anybody that does not match the criteria.

The other issue is the farce of "delayering" or reducing the levels of management. What they have done is to create layers at a very high level and then target the first line managers and senior managers and a few executives.

Then there is the fact that the majority of the management is located at their head office (80% ???) yet they keep cutting the management in the regions, where the majority of the customer interfacing occurs. Yet they motivate the new structure by saying that they want top management "closer" to their customers? How, I ask? Probably via a bloody call centre. :mad:

The biggest mistake Telkom made was to break up the regions and not have regional managers. With a regional manager they had a single point of control where decisions were made and customer issue were resolved by co-ordinating all divisions required to provide a solution.

The current setup has all the decision making powers in their head office in Pretoria. Every division is a silo and they don't talk to each other. To provide a quick solution requires days and weeks of fighting whereas it would have taken them a few hours had it been ordered as such by a regional manager.

So the big bang should have been to destroy the head office structures and push the decision making back down to a regional level. Obviously you would still have national strategies, high level planning, etc. at a head office level.
 
especially on the wholesale and networking side the idea of a regionalized Telkom just makes sense
on the consumer retail side possibly not as much, but you really can't run a network operator on consumer revenue ...
 
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