CEO: Strategic transformations are more important than ever
During London's Financial Times 'Making Transformations Work' conference, Telstra CEO, Sol Trujillo shared the story of Telstra's transformation - the transformation of Australia's largest telecommunications company into a media comms company.
Sol said: "It's a work in progress that is already delivering world leading performance. Back in July 2005, Telstra was a business in dramatic decline, losing traction with customers and getting beaten by competitors. It was like an old truck teetering at the edge of a cliff. We had to avoid the downward plunge, reverse back to the highway, get things moving in the right direction and accelerate past the other traffic."
Not forgetting the current global economic situation, Sol said that he believed the problems flowing from the sub-prime crisis, the widening turmoil affecting banking institutions in the US and the UK, and the state of the global economy are precisely why it is the right time to cast the spotlight on business fundamentals and sound business models because they matter more than ever.
"It is precisely why strategic transformations are more important than ever, why scrutiny of broken and failed business models is essential and cautionary in these times. Most important of all it is appropriate to focus on the drivers of real growth - growth that comes from real innovation, growth that is underpinned by changing customers' lives, growth that can be measured by real normalised metrics such as revenue growth, free cash flow, and cash distribution to our shareholders.
"Telstra's strategy had four major plays: customer centric, value differentiation, product innovation, and cost take-out. Our vision was to change the game by delivering a differentiated customer experience that was simple, integrated and intuitive," he said.
Download the speech: