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Global telecom organisation

Customer centric operating model & right sizing the organization

Customer centric operating model & right sizing the organization
Client Global telecom organisation
Region USA
Sector Telecommunications
Offering Sustainable Cost Optimisation
Buzzwords
Cost reduction Operating model

The Challenge

Our Global Telecom client is strategically focused on achieving customer-centric growth, innovation, and operational effectiveness by shifting from price and technology competition to aligning with customer value and needs.

In parallel, they are emphasizing cost optimization, targeting a reduction in People costs by $4 million. To achieve these goals, the client is proposing the merger of two subsidiary business units to address organizational challenges such as duplication, inconsistency, and a siloed, protectionist culture. Our tasks involve evaluating the case and implications of the merger and designing an integrated organization with an operating model that aligns with the strategic aims of unlocking additional revenue while maintaining an appropriate size and cost base.

Our Approach

We conducted a qualitative and quantitative analysis of the current state of the two business units, including a examination of cost and revenue data. We built a detailed cost model to identify efficiency opportunities, using it to model hypotheses, estimate the size of benefits, and enable data-driven decision-making.

Additionally, we facilitated workshops with leadership to map all organizational activities, scrutinizing areas for inefficiency and identifying duplication. Our designed operating model organizes the company as a Product Company with distinct Value Streams—collections of complementary go-to-market products aligned to similar customer needs. It includes a newly built Product Marketing function, bringing insight and intelligence to shape strategy and roadmaps. It also encompasses Engineering delivery teams structured around Chapters undertaking Agile delivery, with standard governance and IT-as-a-service provided by the CIO function.

We defined the detailed structure, accountabilities, governance, ways of working necessary to operationalize the model. Additionally, we outlined the necessary sequencing for implementation.

Key Outcomes

  • Leadership has clear understanding and endorsement of the Case for Change.
  • The development of a comprehensive operating model places emphasis on customer-centric growth and innovation, with the goal of unlocking an additional $40 million in revenue. This model actively promotes collaboration and streamlines operations to enhance efficiency.
  • Establishment of a organizational structure down to N-5, inc. roles and accountabilities for guiding personnel selection.
  • Definition and effective alignment on the future governance & ways of working processes to all relevant stakeholders.
  • Successful identification of inefficiencies, meeting cost targets, and reinvestment in capabilities upskilling.
  • Detailed implementation plan created for implementation with minimal disruption to BAU, prioritizing areas with maximum benefit.
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