Core Issues

 Change driven by individuals - there seems to be no institutionalisation of these changes, or

an overarching vision to keep them aligned post crisis resolution.
 Lack of anticipatory approach, there is no evidence of any plan to come up with
differentiated services to build and sustain competitive advantage.
 No concrete evidence of any HR policies to incentivise and sustain transformation.
 There seems to be no alternative plans for utilisation of residual physical/network assets
after rationalization.
 Evidence of brand focus on 2 verticals, but no information on how T-Systems will be factored
into the company’s plans going forward.

Case Analysis

Strengths:

 Strong change agent in the new head of the organisation, Obermann, who had a direct,
hands-approach to tackling challenges.
 Presence of a strong coalition to engender change who can implement any changes
effectively.
 Consumer and business brands separated to maintain keener focus. This would ensure that
instead of an inside-out approach, a customer-centric focus would emerge, and internal silos
would be eradicated.
  Specific, measurable, short-term goals, (Focus and Fix) are being focussed upon while
keeping an eye on the future (Grow).
 Changes  driven across several planks like sales, integration of infrastructure, rationalising of
workforce, rationalising of T-Home portfolio, integrating customer service functions of T-
Home and T-Mobile, among others - the focus of changes  has been evenly spread bringing
the organization onto an even keel
 With hurdles(reluctant leaders) replaced and the company’s financials improving, the
employees are motivated and also the union is satisfied with current arrangements 
 Clear lines of communication and direct interactions with frontline workers have been
established which helps the customer first approach
 Huge asset base of 130bn euro which can be leveraged for sustained growth 
 DT boasted of a legacy of being the world’s largest integrated telecommunication service
provider, a brand equity that can be capitalised.

Weaknesses:

 Formalisation of change management processes across the organization has not been
completed yet
 In spite of having reduced employee costs, DT still retains a very large employee count
 There is only reduction in the losses of the fixed line business which is still pulling the overall
financials down


Opportunities:
  The determination and motivation of the leadership coalition that is driving change can be
amplified to ensure it trickles down to all levels of the organisation.
 Ready-made crisis.There was no need to articulate a need for the transformation
 Near term successes in organizational objectives, can provide priming necessary for future
initiatives
 Increasing  opportunities in the emerging markets , technological developments,
acquisitions and partnerships opportunities have created more scope of revenue
generation and business diversification.
 Steep jump in customer’s market share for broadband business, which offers an opportunity
for future growth across other product categories- cross selling.
 Scope for further cost cutting in Germany.

Threats:

 No long term vision was articulated by the leadership, this may derail the next stages of
progress post crisis management 
 Despite better performance as compared to the previous year’s it is still failing to keep up
with its competitors in profits
 Lacking differentiation in services : DT is fighting with its competitors in the same
space
 Customer switching cost is lowered
 While there seems to be plans to handle pressing issues, there is no mitigation
strategy for emergent circumstances.

Recommendations:

Though Obermann had taken many steps towards improvement of the organization, the following
recommendations would ensure that the gains made in weathering the crisis can be sustained and
expanded for future growth:
 A long term employee engaging vision should be clearly articulated, smaller goals and plans
should dovetail into this vision.
 The pace, momentum and impetus of change needs to be sustained to ensure the company
doesn’t fall back to previous equilibrium, or get stuck at current levels.
 Institutionalisation of processes to sustain the momentum accorded by the current change,
and also account for a future beyond the current crisis.
 Introduction of a proper HR system:
o A structured HR system will be able to induct new employees into the organizational
culture and align them with the larger vision.. 
o Creation of the next line of employees to maintain the redefined legacy of the
organization.
 o An HR system can introduce a structured performance appraisal system to monitor
an individual’s performance periodically, this will help one to track an individual’s
performance.
o Performance metrics like the ability to create a turnaround in the crisis and to
sustain growth beyond it need to be developed, for instance, based on customer
acquisition, retention and satisfaction.
o Formalise people engagement programs to understand employee needs at all levels
of the organisation to sustain growth.
 Continuously improve work efficiency by eliminating weak components like
underperforming assets.
 For further revenue generation, they can also utilize their huge asset base for their future
plans to venture into other segments apart from their core competency, especially as the
external environment seems to be stable for now. They should also create differentiation in
their products and offerings for better market penetration.
 Re-look at the fixed line business, which is a revenue guzzler. If the future for the fixed line
business itself is bleak, then the company should exit that line of business, and rationalise its
assets to drivers of future growth, or to existing drivers.