Succes Story
Organisation Development Solution for Regional Middle Eastern Telcom.
Client: A leading regional Telecom Company located in the Middle East.
Service Provided: Organisation Development Solution (strategic transformation, governance, nationalization, and capability-building program).
Outcome: Focused and specialized service offering, reduced churn rate by 33% and reached 98% nationalization.
The Challenge:
Our client is a leading Regional Middle Eastern Telco. Company, the top management has requested an effective operating model to increase customer base subsequently revenue growth and a succession plan to nationalize departments facing customers and set a target at 80% national employees.
Over the years, the customer base has grown marginally due to high churn rates and all succession plans are either inefficient or incomplete due to high attrition rates and/or skills scarcity. The current nationalization level was at 50% where all critical positions have been held for expats.
To identify the challenge size a local employee said during the introductory meeting, “I am here for salary, and I am looking for a job in another company to grow, my future is not here.”
QualiValue Solution: Organisation Development Solution (strategic transformation, governance, nationalization, and capability building program):
- Diagnosis:
- Mixed B2B and B2C strategies are available where customer interfacing departments are not organized in a way that matches the business strategic direction.
- Revenue generated from B2C is 10% of total company revenue, where 90% is generated from B2B clients and other business solutions offered.
- Overwhelming sales and customer demands are forcing management to appoint more employees at different levels within the organization.
- Recruitment is based on favouritism and is widely spread within the organization for expats and locals.
- Multiple fraud cases and high churn rates have been identified.
- Solution Implemented:
- Strategic Transformation: A comprehensive review of the business operating model with a clear distinction between B2B and B2C operations resulted in a critical strategic transformational change in the operating model:
- It was recommended and approved by top management to transform sales to B2B only.
- B2C customers will be preserved at the current level and will not be expanded and offers will be discontinued.
- Gradual plan for retail office closure and transferring B2C traffic to online interactions.
- The business process has been optimized to match the new company’s strategic direction.
- Strategic Transformation: A comprehensive review of the business operating model with a clear distinction between B2B and B2C operations resulted in a critical strategic transformational change in the operating model:
- New Organization Structure & Governance:
- Establish a new department to resource new B2B products and solutions.
- Establish a revenue assurance department to monitor the quality of sales.
- Establish retention and loyalty team to sustain customer satisfaction and customer base.
- Restructure the hiring process to cease recruitment from outside the organization for one year and encourage internal hiring except for local candidates with top-management approval, which enforces the utilization of internally qualified resources and eliminates favouritism.
- Nationalization & Capability Building:
- Establishing competency-based assessment centres for all employees focusing on local employees.
- Establishing a nationalization development plan based on assessment centre results.
- On-the-job coaching, mentoring, and training were in place for one year for local employees to ensure resourceful internal capabilities were abundant and matched the required future vacant skills.
- New Organization Structure & Governance:
- The Impact after one-year engagement:
• B2B-focused service offerings and limited B2C services provide organized service delivery efforts and diminish lower revenue efforts.
• Reduced churn rate by 33% (YoY).
• The nationalization level reached 98% which transformed and fostered the company culture.
• As an indication of retention and loyalty successful implementation an increase of collection levels by 55% and 24% regarding revenue with a growth of 2%.
Contact us today to discover how we can transform your business with our expertise in Organisation Development.