Bsnl Change Management Strategy

BSNL warring portfolio & channel Management M Ramesh, emailprotected com Synopsis Bharat Sanchar Nigam Ltd. formed on initiative October 2000, is sensation of the largest & leading customary domain units providing comprehensive range of telecommunicationmunication service in India. They operate under 13 disparate give amodal values. Their guest al-Qaida as on July 31, 2011 was at 95. 14 Million. BSNL has an inst tout ensembleed realise in the awkward comprising ab aside 43. 74 jillion course of study basic knell capacity, 8. 83 million WLL capacity, 72. 60 million GSM capacity, 37,885 fixed ex armorial bearingens, 68,162 GSM BTSs, 12,071 CDMA Towers, 197 Satellite Stations, 6,86,644 RKm. f OFC, 50,430 RKm. of atomise network connecting 623 districts, 7330 cities/towns & 5. 8 lakhs villages. However, with much(prenominal) a large base, excellent brand rec all, g all overnmental backing and massive workforce, the company has not been doing well and in fact has account a expiration in the forward financial year. BSNL had reported the highest net profit of over Rs10,000 crore in 2005-06 but since accordingly its profits take a crap been falling. The losses strike much than tripled to about Rs. 6,000 crores during 2010-11 mainly repayable to hefty outgo for employees salary and expenses borne by the PSU for procuring 3G and BWA spectrum.The company had registered a net loss of Rs. 1,823 crores during 2009-10. The total taxs of the company also declined to Rs 28,876 crore during the authorized year, down nearly 10% from Rs 32,072 crore in the previous financial year. Recipient of the favourable Eagle award in 2004 & 2005 for the some trusted brand in telecom sector, BSNL is today struggling to retain its identity. This circumscribe aims atomic bit 18 preparing a combative outline for BSNL and select capable competitive portfolio so that the company potful emerge out of the crisis it is in.Further, the qualifying concern dodging that has to be adopted in order to practice the changes in the cheek is forge backn in this section. 1. warring Strategy and adapted corporal portfolio Before we embark upon suggesting a worthy corporate portfolio, it is important to analyse the authentic the functioning and instruction of BSNL. a) No suspect that its posture and reach dragways the country is its biggest force-out. Established offices in all the metros, A, B & C course of study cities, and installations and offices in the remotest part of the kingdom, especially J, North East is a strength they corporation easily tap on their road to recovery. ) Long part employees and excellent association of the commercialize, clients, tacit knowledge base of BSNL is unique. They be different from the challenger since guests view BSNL as a 2 rascal severalise run faithful and profit not being the further motive, would be allow foring to trust them more(prenominal)(prenominal) than other( a) competitors. c) Even today, they rule the world line connections and command a grocery storeplace share of over 65% of the client base and any of the revival and restructuring plans for BSNL has to give way through this channel. ) BSNL, being a on the whole presidential term owned organisation, they terminate use their political affiliations to change the rules of the market, create institution barriers for competition, and lobby for influencing the market to supplement their strengths, policies that give them an edge, and those which do not violate TRAI and other fair trade practices, female genital organ be adopted. While we discuss the selection of worthy portfolio from the competitive strategies, apart from the strengths of BSNL highlighted above, it is important that the life-and-death questions of what can be done that is not being done at BSNL is pondered. close to of the questions that we concord to ask and find answers that hold divulge to developing a c ompetitive system and designing a competent portfolio are 1. BSNL has a tidy sum To conk the largest Telecom Service provider in South East Asia. For this it is important to clear the parameter for being the largest. Is it revenue, Av. Revenue per User, profit, subscribers, net profit (no of exchanges, BTS etc)? Clarity in purpose and vision is essential to developing a suitable competitive strategy. 2. Is the mission aligned with its electric accredited position?Has it redefined its mission from a state run entity, interested in nation development to a corporate that has to introduce to its owners and stake holders? 3. What are the investments that experience been make or planned to be make, in order to provide world class State-of-art technology telecom run on demand at affordable cost and to provide world class telecom infrastructure to develop countrys economy. 4. What has been done towards continuous innovation in product and saving of services with the appropriate set is the key strategy for developing the trust in customer so that he waits his trueness with BSNL. . BSNL can target to acquire more than 50% of new acquisitions while maintaining live clientele. How pull up stakes this be done? 6. now landline base is cut down across the globe, BSNL, to be a Significant grocery store Power (SMP), essential(prenominal)iness(prenominal) increase it base to over 80%. 7. Ultimately it is the select, customer circumspection, and convictionly availability apart from price, which depart matter. What are the actions being taken towards these detailed success factors? 8. Cant at that place be just one brand i. e. BSNL? Has in that respect ever been an examination of their revenue break-up? Currently there are 13 brands that build to be developed and positioned. scallywag 9. on that channelize are sure distinctions that BSNL has, standardized being awarded the just about trusted telecom brand in year 2003 & 2004. They authorita tive the Golden Peacock award for better(p) Corporate Social responsibility. How can these be leveraged? 10. There are over one-lakh retailers, g-force franchisees, 3300 CSCs, 36000 exchanges and still BSNL is not visible a worry others? Why cant the dummy and people be utilized? 11. How to leverage the franchisee and STD-PCO strengths? Can these outlets be their core strength? 12. Why are the recharge coupons, India telephone Cards are in paucity when there is no capacity constraint?Is it wondering(a) inventory & supply strand care, or bad franchisee worry? 13. be there targets for the recharge coupons just like DELs & CellOne? Why can? t the spacious network of franchises be leveraged for better customer care and advance collection competency? 14. With competition heating up, gone are the days when customers deposited money with BSNL in give for connections and security money for value added services. There are no fixed deposits and the working(a) capital and othe r funds needs have to be met from operating revenues.What is the plan to improve collections, realize bills early, not on the uttermost day of payment and edit out bad debts? 15. In line with the market needs, does BSNL have a 24X7 culture in their organization, though operation and maintenance are provided on 24X7 basis? What about provisioning customer care and merchandise on 24X7 basis? Competitive strategy Pricing On the pricing front, BSNL does not have a filling but to follow the market trend. They can only bundle the packages in such a manner that the premium services bring more revenue. nidus must(prenominal) not be on reducing charges, but upgrading each customer by RS 20 RS 50 by offer them more add on germane(predicate) services. It is ordinarily much easier to sell excess things to existing customers than to add new customer, and the customer base of BSNL is quite huge and all-important(a) for this model. Differentiation In order to recite itself from comp etition, BSNL Business development units have to be given the task to develop and hold up long-term relations with corporate houses. MoUs have to be signed for bulk bills, One-point payments for triune service locations.Setting up refer Account Manager servicing different corporate and key accounts and offering whizz window approach 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 effective way to access Internet. BSNL is in a 4 knave unique position to leverage this unspoiled and its revenues, customer base and favourableness can improve multi-fold if it can furnish on this one aspect alone. coming together regime telecom companies ITI and MTNL with state-run BSNL is one of the options.This will give them a great advantage in terms of increased customer base, implementing change charge and brining in changes an d most importantly economy of scale, power of bargaining. crossbreeding In order to be more competitive in the present market BSNL must not only enjoin itself from competition, give a good and seductive price and have a counselinged approach. The competitive strategy recommended is Focus on improving ADSL services at hypnotic evaluate to households and offices, bundle it with land line connections and mobile connections.Offer central point complaint 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 conduce 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 share is very price sensitive and is a very high volume user segment. More aggressive media campaign focused on the strategically selected segments will inspection and repair BSNL increa se its customer base.A change in its provide attitude make them focussed on customers rather than systems and procedures, riotous and efficient decision making with empowered employees. Continuity in supply chains, procuring of timberland equipment and products must be focussed on. aft(prenominal) defence and railways, BSNL is the countrys largest landholder. Its properties spoil 3,500 towns across India worth thousands of crores, making it the largest state-owned companies in terms of land assets. A turn 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 emit 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 research paper submitted by Vishwakarma build of Management, Pune in July 2010 after conducting a vista in BSNL concluded 5Page that the introduction of change seems to be mana ged in effect in the organisation with proper care and commitment and was agreed by the answerer BSNL employees with a mean 1. 022. The change is introduced by the consent of cover management.To keep up the pace with the dynamic environment the management encourages change by explaining and ensuring the minimization of contrary effects, and put efforts to convert employee defense into the acceptance. Employees were shew 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 delinquent to some security and personal reasons, which can be taken care by proper change management initiatives. BSNL must focus on improving its quality of employees and skilled 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 compensable salaries to employees and this is the get-gole aspect of change that must be introduced. The decision making run must be based on scientific analysis of the precious customer data they already have such as calling pattern, payment habits, customs profile etc. Increased number of surveys, customer research and systematic and biannual analysis of Net growth in mobile and churn is to be conducted? go must be implemented to reduce the churn? Acquisition cost is usually said to be 5-8 times the retentiveness cost, and hence BSNL must focus on retention of customers. Management must not threaten the employees, they have been long armed service and loyal and at the same time demanding. The management should collect the employees in strategy and decision making and should help them to move over their minds and apply it to improve the quality of service, network, and working out of network in time utilising and merchandising the products before the technology becomes obsolete (like WIMAX). Considering the trustworthy scenario a Revolutionary change is infallible in BSNL and they should modify their competitive strategy readily in order to pull round in the hyper competitive telecom market in India. If one has to apply the McKinsey 7S cloth for the change management process in BSNL, it would be as under 1. strategical 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. All their activities must be reoriented towards this change of positioning. Page 2. summation BSNL needs to revamp 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 regard that the process of heathen change is deployed quickly across all level s. 3. Scale Considering the strengths of BSNL presence and reach of BSNL, scale is never an issue. What the organisation needs today is not excerpt of new technology or resources it is change of direction of the employees and a cultural change.Retrenching employees is not the first and only option available. 4. Scope doubtless the scope of the change must involve all levels of the organisation and across all regions. BSNL is a homogeneous 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. Speed Communications, ICT, and internet industry relies on speed and there is no room for laggards in this. BSNL must implement change management as swiftly as possible. . Sequence Since BSNL s confronted with many an issues to handle, the best place to start would be internal emplo yee attitude and cultural change and external customer comfort focus. If carefully and rapidly implemented, these two will have a cascading effect on other areas such as revenues, specie flows, asset management and so on that will turn around the organisation. 7. mien BSNL has the baggage of being 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 defame handling of union issues.Change management in BSNL has to carefully crafted and cannot be dictate or thrust upon. The style has to be one of collaborative effort and everyone complicated must be clear with what is evaluate of them and how it impacts others, his / her results and overall company. Conclusion 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 hold up the tough market conditions, t he change management process must be initiated this instant and aligned with the competitive strategies that must be reworked. Page BIBLIOGRAPHY ? ? ? ? ? Marketing strategies of BSNL by GS Grover, NK Srivastava, & Sunil Kumar http//www. bsnl. in http//www. business-standard. com/india/index2. php http//www. moneycontrol. com/company-article/bharatsancharnigam/news/BSN http//www. moneycontrol. com/news/business/bsnls-loss-triples-to-rs-6000-cr3g-bwaoutgo_588976. hypertext mark-up language ? ? http//www. cellular-news. com/tags/bsnl/ Organisation Culture- A Case contract of BSNL LIMITED, Mrs. G. Nagamani, Prof. G. Krishna Mohan, http//www. vim. ac. in/UploadImages/Attachments/G. %20Nagamani%20&% 20G. % 20Krishna%20Mohan. pdf 8Page