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CEO: Strategic transformations are more important than ever



Topic: Telstra

Tags:    business  conference  customer-service  economics  news  sol-trujillo  speech  telstra  transformation


Telstra CEO, Sol Trujillo

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:

Comments

john da rin
9 comments

1 October 2008
11:32am

Comment Permalink

And watching Sol do all this has been pretty to watch.

Add in the market segmentation, to achieve the customer centric approach he got Marketing to do, and baby Telstra is going gang busters. It's a pity I will not be here to watch the rest happen from the inside but Telstra was a big Government dept that the Feds were unable to manage so the only way to improve it was to take the capitalist/market driven approach and sell it so someone else could rid the Company of efficient BU's/depts.

Anyone who thinks this guy Sol is leaving soon has not realised he is "fair dinkum" in his attempt to improve Telstra and turn it into something bigger than Ben Huir. Those that get to stay with Telstra on this ride to the end are going to be sore, battered, worn & scared BUT hey it will be a mighty business when tranformation is completed.

Onya Sol - keep proving the doubters wrong - you the man!!


Vasso Massonic
304 comments

1 October 2008
12:55pm

Comment Permalink

Congratulation on an excellent and very proud presentation. On a scale One to Ten you easily scored 20, and that's with chapters yet to be written.


Tony Power
229 comments

1 October 2008
1:41pm

Comment Permalink

Give that man a beer. He's earned it.


che unity
7 comments

1 October 2008
11:41pm

Comment Permalink

Sol,
Congratulations in turning this great company around. I am sure part of the Transformation was to have your salary negotiator act for you when you first started at Telstra.

Did you know your direct reports do not extend the same rights to your staff. Telstra refuses to talk to the unions about wages and conditions.

Someone in Telstra's HR is impeding Transformation.


Chris Moretti
33 comments

2 October 2008
3:30am

Comment Permalink

Well done sol and the team, this is good for Telstra shareholders, customers and staff.

 

@Che - my understanding is the unions walked away from the Telstra staff members by making Telstra a test case for the ACTU rather then just worring about Telstra - the reason my grandfather was a strong union man and the reason i am a strong anti union man, in his day the unions leaders came from the so called rank and file - today they come straight from uni spend a bit of time in the union leadership then go on into politics. Che that is why less and less people belong to unions. With such falling numbers in membership I think the unions could do with a bit of transformation.


Vasso Massonic
304 comments

2 October 2008
6:45am

Comment Permalink

che unity, or whatever your name is. You are sure becoming a bore. There are other telecoms in Australia and abroad which may offer the employment opportunity your are seeking. Telstra shareholder.


Tony Power
229 comments

2 October 2008
8:48am

Comment Permalink

@Chris. You just hit the nail on the head. Fewer and fewer people see any benefit in the unions because the unions represent themselves before they represent their members, as evidenced in this case.


john da rin
9 comments

2 October 2008
10:00am

Comment Permalink

Unions represent the workers. And the workers, ALL workers, decide that if times are good they don't need to work together to achieve their combined ends. When things are bad they work together to get what they believe they deserve. Simple, but that's how I've seen in it in my 35 years working life.

Currently not enough workers are worst off so they don't join the Union. Sure the fresh faced union delegates do, as Chris has suggested, but it is more to do with the workers and their wants/needs. If they're gutless the Union is likewise.

Workers, ALL workers, have put their lives in their own hands. They are now their own employer - and try to get the best for themselves. In the last 10 years WE have agreed to follow a me me me attitude. WE are no longer about the good for all.

That's why we need more people like Sol who has vision and sees the vision, can see the end result as clear as a bright blue sky and pushes like mad to get there.
Get on the good ship Telstra 'cause it's non stop to excitement!!


Tony Power
229 comments

2 October 2008
10:12am

Comment Permalink

@Che. How could Sol have made a change to allow him to negotiate his salary before he actualy had the job? Also Sol wouldnt need a salary negotiator, he would have done the negotiating himself. You just keep shooting your self in the foot.


John Gammon
2 comments

2 October 2008
9:33pm

Comment Permalink

Ahhh Mr. Trujillo, i fine effort once more, can this man of perfection ever be stopped?

Keep up the good work, your high paycheck makes my lowly salary matter not everyday i spend at telstra is a day i get to work in your shadow!.

John


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