Bsnl Change Management Strategy

BSNL militant portfolio & Change heed M Ramesh, emailprotected com Synopsis Bharat Sanchar Nigam Ltd. make on 1st October 2000, is one of the largest & leading public sector units providing comprehensive examination range of telecom services in India. They operate under 13 different brands. Their node group as on July 31, 2011 was at 95. 14 Million. BSNL has an installed Network in the country comprising about 43. 74 million crimp basic telephone capacity, 8. 83 million WLL capacity, 72. 60 million GSM capacity, 37,885 meliorate ex swaps, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644 RKm. f OFC, 50,430 RKm. of microwave network connecting 623 districts, 7330 cities/towns & 5. 8 lakhs villages. How of all time, with such a large base, excellent brand recall, political backing and broad workforce, the telephoner has not been doing well and in fact has reported a going away in the anterior financial social class. BSNL had reported the highest net prof it of oer Rs10,000 crore in 2005-06 scarcely since then its profits pee-pee been falling. The losses get hold of more(prenominal) than than tripled to about Rs. 6,000 crores during 2010-11 mainly due to hefty outgo for employees net and expenses borne by the PSU for procuring 3G and BWA spectrum.The telephoner had registered a net loss of Rs. 1,823 crores during 2009-10. The total revenues of the company alike declined to Rs 28,876 crore during the present-day(prenominal) year, down nearly 10% from Rs 32,072 crore in the previous financial year. Recipient of the Golden Eagle award in 2004 & 2005 for the well-nigh trusted brand in telecom sector, BSNL is today struggling to entertain its identity. This article aims ar preparing a competitive system for BSNL and select adequate competitive portfolio so that the company asshole emerge out of the crisis it is in.Further, the motley centering dodging that has to be adopted in order to use the tilts in the organisation is given in this section. 1. Competitive Strategy and fit merged portfolio Before we embark upon suggesting a worthy corporate portfolio, it is consequential to analyse the current the functioning and counselling of BSNL. a) No doubt that its social movement and r separately crosswise the country is its biggest strength. Established offices in all the metros, A, B & C class cities, and installations and offices in the remotest parts of the nation, especially J, North eastern United States is a strength they prat easily exploit on their road to rec everywherey. ) Long serving employees and excellent knowledge of the grocery, guests, tacit knowledge base of BSNL is unique. They are different from the competition since nodes view BSNL as a 2 rascal severalise run firm and profit not cosmos the only motive, would be pass oning to trust them more than other competitors. c) blush today, they rule the land line connections and command a market contend of over 65% of t he customer base and any of the revival and restructuring plans for BSNL has to arrivederci through this channel. ) BSNL, being a completely brass owned organisation, they support use their political affiliations to channelise the rules of the market, create entry barriers for competition, and lobby for influencing the market to leverage their strengths, policies that give them an edge, and those which do not violate TRAI and other second-rate trade practices, house be adopted. While we discuss the selection of suitable portfolio from the competitive strategies, apart from the strengths of BSNL highlighted above, it is of the essence(p) that the crucial questions of what can be through with(p) that is not being make at BSNL is pondered.Some of the questions that we have to use up and find answers that hold key to developing a competitive dodge and designing a suitable portfolio are 1. BSNL has a vision To commence the largest Telecom Service provider in South East Asia. F or this it is important to understand the parameter for being the largest. Is it revenue, Av. Revenue per User, profit, subscribers, Network (no of exchanges, BTS etc)? Clarity in purpose and vision is essential to developing a suitable competitive dodging. 2. Is the mission aligned with its current position?Has it redefined its mission from a state run entity, interested in nation cultivation to a corporate that has to deliver to its owners and stake holders? 3. What are the investments that have been made or mean to be made, in order to provide world class State-of-art engine path telecom services on demand at affordable terms and to provide world class telecom infrastructure to develop countrys economy. 4. What has been make towards ceaseless innovation in product and delivery of services with the suspend pricing is the key strategy for developing the trust in customer so that he keeps his unwaveringty with BSNL. . BSNL can target to acquire more than 50% of rude(a) ac quisitions while maintaining existing clientele. How will this be done? 6. Today landline base is reducing across the globe, BSNL, to be a Significant Market Power (SMP), mustiness affix it base to over 80%. 7. Ultimately it is the eccentric, customer care, and timely availability apart from price, which will matter. What are the actions being taken towards these critical success factors? 8. Cant there be just one brand i. e. BSNL? Has there ever been an examination of their revenue break-up? Currently there are 13 brands that have to be developed and positioned. Page 9. in that respect are certain distinctions that BSNL has, demand being awarded the most trusted telecom brand in year 2003 & 2004. They received the Golden Peacock award for Best Corporate neighborly responsibility. How can these be leveraged? 10. There are over one-lakh retailers, 1000 franchisees, 3300 CSCs, 36000 exchanges and unbosom BSNL is not visible like others? Why cant the stead and people be utili zed? 11. How to leverage the franchisee and STD-PCO strengths? Can these outlets be their consequence strength? 12. Why are the recharge coupons, India Telephone Cards are in shortage when there is no capacity constraint?Is it risky inventory & supply chain management, or bad franchisee management? 13. be there targets for the recharge coupons just like DELs & CellOne? Why can? t the huge network of franchises be leveraged for better customer care and purify collection efficiency? 14. With competition heating up, gone are the old age when customers deposited money with BSNL in advance for connections and security money for value added services. There are no fixed deposits and the working capital and other capital fates have to be met from operating revenues.What is the plan to improve collections, realize bills early, not on the last day of defrayal and down bad debts? 15. In line with the market needs, does BSNL have a 24X7 culture in their organization, though operation an d maintenance are provided on 24X7 basis? What about provisioning customer care and marketing on 24X7 basis? Competitive strategy set On the pricing front, BSNL does not have a choice but to follow the market trend. They can only bundle the packages in such a manner that the premium services bring more revenue. pore must not be on reducing charges, but upgrading each customer by RS 20 RS 50 by offering them more add on relevant services. It is usually much easier to sell supererogatory things to existing customers than to add new customer, and the customer base of BSNL is quite huge and substantive for this model. Differentiation In order to differentiate itself from competition, BSNL Business development units have to be given the task to develop and nurture long-run relations with corporate houses. MoUs have to be signed for bulk bills, One- full point payments for quaternary service locations.Setting up Key Account Manager armed service different corporate and key accounts and offering single window advent to resolve all issues and prevent any unwanted issues. Focus BSNL has a strong hold on land line telephones, an important requirement for ADSL connections. There are huge benefits of ADSL over Wi-Fi & is very cost legal way to access Internet. BSNL is in a 4Page unique position to leverage this advantage and its revenues, customer base and profitability can improve multi-fold if it can capitalise on this one candidate alone. integrate government telecom companies ITI and MTNL with state-run BSNL is one of the options.This will give them a gigantic advantage in terms of increased customer base, implementing change management and brining in changes and most importantly economy of outmatch, power of bargaining. Hybrid In order to be more competitive in the present market BSNL must not only differentiate itself from competition, give a penny-pinching and attractive price and have a focussed approach. The competitive strategy recommended is Focus on improving ADSL services at attractive range to households and offices, bundle it with land line connections and planetary connections.Offer central point billing PAN India. For e. g. If a corporate company has branch and regional network, they must have the option of consolidated billing when they want and where they want to the level of Head office control they want to implement. BSNL can also offer special rates and Closed User Group (CUG) for government sector and earn huge revenues, since this segment is very price reactive and is a very high volume user segment. More combative media campaign focussed on the strategically selected segments will help BSNL increase its customer base.A change in its staff military strength qualification them focussed on customers rather than systems and procedures, fast and efficient decision do with empowered employees. Continuity in supply chains, procuring of quality equipment and products must be focussed on. After defence and railway s, BSNL is the countrys largest landholder. Its properties span 3,500 towns across India worth thousands of crores, making it the largest state-owned companies in terms of land summations. A operate around policy of BSNL should have this huge source of revenue at its core. 2.Change management strategy to enable it turnaround. No change in BSNL can happen and can be implemented without change of mindset in addition to the skills of marketing & sales. In this regards it is important to note that a interrogation paper submitted by Vishwakarma Institute of Management, Pune in July 2010 after conducting a survey in BSNL concluded 5Page that the introduction of change seems to be managed effectively in the organisation with proper care and shipment and was agreed by the respondent BSNL employees with a mean 1. 022. The change is introduced by the consent of top management.To keep up the pace with the dynamical milieu the management encourages change by explaining and ensuring the mi nimization of adverse effects, and put endeavors to transfer employee vindication into the acceptance. Employees were found to be change oriented, as they have continuous learning attitude to keep match with the future organizational requirements. Respondents? shows resistance change in some issues due to some security and individual(prenominal) reasons, which can be taken care by proper change management initiatives. BSNL must focus on improving its quality of employees and competent manpower?They must focus the organizational setup more suitable for better results? The staff expense to revenue ratio could be a good indicator. Today, more than 47% of the revenue goes to paying salaries to employees and this is the offshoot aspect of change that must be introduced. The decision making process must be based on scientific analysis of the precious customer data they already have such as calling pattern, payment habits, usage profile etc. Increased number of surveys, customer rese arch and systematic and periodical analysis of Net growth in mobile and churn is to be conducted?Steps must be implemented to reduce the churn? Acquisition cost is usually said to be 5-8 time the retention cost, and hence BSNL must focus on retention of customers. Management must not threaten the employees, they have been long serving and loyal and at the same time demanding. The management should involve the employees in strategy and decision making and should help them to open their minds and utilise it to improve the quality of service, network, and expansion of network in time utilising and selling the products before the engineering science becomes obsolete (like WIMAX).Considering the current scenario a Revolutionary change is required in BSNL and they should modify their competitive strategy quickly in order to drop dead in the hyper competitive telecom market in India. If one has to apply the McKinsey 7S framework for the change management process in BSNL, it would be as under 1. Strategic BSNL has to revisit its mission and evolve competitive strategies that are in line with the market dominant position that they want to be, exploiting their current strength of market leadership in land line connections. entirely their activities must be reoriented towards this change of positioning. Page 2. Substance BSNL needs to vamp up its board and its top management, to be more customer and market oriented, dynamic and profit driven. Culturally, it is established that BSNL is employees are open to adopting change and hence management should provide necessary training to ensure that the process of cultural change is deployed quickly across all levels. 3. Scale Considering the strengths of BSNL presence and reach of BSNL, scale is never an issue. What the organisation needs today is not infusion of new technology or resources it is reorientation of the employees and a cultural change.Retrenching employees is not the first and only option available. 4. Scope Undoubtedly the scope of the change must involve all levels of the organisation and across all regions. BSNL is a homogenous entity and changes at one level or within certain geography is not possible to implement. Certainly, depending upon the local customer bases, working conditions and cultural differences, adaptations can be allowed, but the change itself, must be pan organisation. 5. focal ratio Communications, ICT, and internet industry relies on speed and there is no room for laggards in this. BSNL must implement change management as fleetly as possible. . Sequence Since BSNL s confronted with many an issues to handle, the best place to sidetrack would be internal employee attitude and cultural change and external customer satisfaction focus. If carefully and rapidly implemented, these two will have a cascading effect on other areas such as revenues, cash flows, asset management and so on that will turn around the organisation. 7. appearance BSNL has the baggage of bein g a government owned company and attitude of staff cannot be changed overnight. Unions are strong and public opinion can be made and tarnished by the correct or wrong intervention of union issues.Change management in BSNL has to carefully crafted and cannot be fixed or thrust upon. The style has to be one of collaborative effort and everyone involved must be clear with what is expected of them and how it impacts others, his / her results and overall company. decision BSNL is at cross roads of its existence. The need to refine its competitive strategy and implement change management has never been more urgent than it is today. If BSNL has to rifle the tough market conditions, the change management process must be initiated immediately and aligned with the competitive strategies that must be reworked. 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