Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Telecom bosses to lose credit cards in new efficiency drive

No credit cards for Telecom bosses as efficiency drive starts

Dec. 22 (BusinessDesk) – Telecom Corp.’s entire executive team has cut up its corporate credit cards, as the company starts an efficiency drive that chief executive Paul Reynolds is telling staff will put an end to the company “waffling around.”

In an article for its widely circulated staff magazine, Co., Reynolds outlines the company’s new three-year plan, called “Vision 2013”, which will see total staff numbers fall from close to 7,000 at present, and will introduce new disciplines on both operational and capital expenditure, and Telecom will be willing to abandon unprofitable markets.

“We have spent $4 billion in the last four years meeting … regulatory and customer demands,” says Reynolds. “But our market capitalisation has gone down $4 billion at the same time, which means we are not keeping our costs low enough to give our shareholders a return on capital.”

Savings of “at least $100 million” are being targeted from capital spending plans, while the company can save “tens of millions by just looking at the way we spend individually.”

“The entire executive team has cut up their credit cards, including myself,” says Reynolds. “We’re going to cut credit cards in Telecom to 1,000 from 3,500 in coming months.”

Meanwhile, Reynolds is also signalling a shake-up in the way the national telco does business internally, and with its partners.

“We’ve got poor accountability, we’re siloed in our decision-making, and our core processes and operations aren’t working well enough. That’s the challenge, and it’s a big one. While it might sound dramatic, we can’t afford to waffle around anymore.”

With respect to its product mix, Reynolds says that by 2013 “instead of being in every market, every segment, we would have chosen markets where we have competitive advantage and where there are profits to be made.

“By streamlining what we offer to the market, we will also be considering far more carefully the life cycle of products and how much they cost each part of the business to develop.”

Reynolds foreshadows “drastically reduced” bureaucracy and duplication, with “no more developing and delivering projects in siloes that may not benefit the business as a whole.”

There will be “fewer people working in the business”, although it is too early to which parts of the business will grow or shrink, he says. “But there will be fewer people. There has to be. We’re too big and too cumbersome.”

Natural workforce attrition would account for “some of those losses”.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Foreign Buyers Ban Passes Third Reading

The Bill to put in place the Government’s policy of banning overseas buyers of existing homes has passed its third and final reading in the House. More>>

ALSO:

Nine Merger: Fairfax Slashes Value Of NZ Business

Fairfax Media Group more than halved the value of its Kiwi assets, attaching just A$40 million to mastheads that were once the core of a billion dollar investment. More>>

Collecting Scalpers: Commerce Commission To Sue Viagogo

The Commission will claim that Viagogo made false or misleading representations: • that it was an “official” seller, when it was not • that tickets were limited or about to sell out • that consumers were “guaranteed” to receive valid tickets for their event • about the price of tickets... More>>

ALSO:

Price Of Cheese: Fonterra CEO Goes Early After Milk Price Trimmed

Aug. 15 (BusinessDesk) - Fonterra Cooperative Group chief executive Theo Spierings is leaving the role early after the world's biggest dairy exporter lowered its farmgate payout and trimmed its dividend to retain cash. More>>

ALSO: