Disclaimer: This blog is based on personal experiences and inspired by Jack Welch’s book “Winning”. I am no management guru like Jack Welch. But from my experiences I can say why some telecom bigwigs are making millions of losses and going down. I am listing out some reasons why the one time all powerful, full of innovation, technological marvels who have been in existence for 100s of years are sinking (or have already sunk)?
Sales & Marketing:
Often I have heard big telecom giants saying that their sales force is experienced in selling voice and telecom gear. Hence they are not successful in selling IP (or data) gear. Well this is the biggest BS of all. Well, for one thing, IP has been here for more than 20 years. You have been investing in IP for more than a decade. If you are still stuck with guys who can’t sell IP products, then somewhere, someone is not doing their job properly!
Building solutions isn’t enough! They must be sold to the customers. Sales are all about opportunities. If there aren’t any, you got to create it. Now for example, providing free access solution for KSRTC/BMTC Volvo buses. Its quite a sale. Involving at least 100 access boxes and backbone! Similarly, access solution in Railways, even if 10% of the trains use this solution, its good business. Agreed that there are no RFPs or whatever for these, but then, selling is all about creating opportunities, right? :-)
Acquisitions:
Making strategic acquisition is the most important way for the big - old companies to survive and grow. Cost saving cannot get you to profits (it only pisses off your employees), innovation and market changing ideas do. When you have 60 thousand disgruntled employees, you can be rest assured that path-breaking, market changing ideas are not going to come from within. If at all some one has an idea like that, they would obviously spin off and form a start-up of their own. So, its very important to acquire good start ups and continue to stay on in the game.
In my opinion, big companies should have a specialized team to monitor upcoming and existing start-ups in all countries. I also believe that strategic start-ups have to be picked up fairly early because (1) you get them at a cheaper price and (2) you get a highly motivated team. To realize the importance of acquisitions look at the companies those have missed strategic acquisitions: Nortel which missed acquiring Cisco and Yahoo which missed out taking over Google.
People Management:
People (or work force or resources) are an asset in any business. The problem starts when people become a liability. That’s when companies treat them badly, give bad hikes, make false promises and piss them off. This would result in disgruntled employees who don’t perform. Well, the problem here really lies with people management. Lack of open feedback, retaining and investing in loss making businesses are some of the reasons for this.
Candor is one of the most important qualities of people management. Honest feedback from the market, R & D etc has to be taken by the business leaders and given to the respective teams and then percolated down to the respective individuals. No Sugar coated words. Absolutely honest and direct feedback. This will (i) motivate highly performing people (ii) put some serious sense in under performers (either they will improve or quit or can be fired!). This way, people wouldn’t turn into liabilities!
Some other points are:
Celebrate successes, however small they are!
Get rid of bureaucracy!
Get rid of complex processes (and tools) that people don’t understand!
Keep your people well informed on all developments!
Let people grow! Promote them, give more responsibilities and recognize efforts with awards!
Finally you are a big company, act like one! Provide great facilities at the office. Treat your people really well. Understand that great cubicles, great furniture, neat pantry, clean rest rooms will motivate people better.
Every management book talks about this. Nobody really cares. That’s why big companies sink!!!
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