BSNL Change Management

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What is change management?

Change Management is a structured approach to transitioning

individuals, teams and organizations from a current state to a
desired future state.

It is as organizational process aimed at empowering the

employees to accept and embrace changes in their current
business environment.
Managing Change is about being one step
ahead of rivals , setting trends and leading
change in order to survive and prosper.
 About BSNL

• On October 1, 2000 ,the Department of Telecom Operations,

Government of India became a corporation and was renamed
Bharat Sanchar Nigam Limited (BSNL)

• BSNL is now India’s leading telecommunications company and

the largest public sector undertaking

• Operates basic, cellular (GSM and CDMA) mobile, Internet

and long distance services throughout India (except Delhi and
Mumbai).,MPLS-VPN, VSAT, VoIP services, IN Services etc.
The change management involves the trial run of a new product
or service, a takeover, a merger, redundancies or a large-scale
growth or decline.

• Organizational culture • Teamwork

• Management structure
• Management of change
• Marketing measures
• Training/recruitment
• Leadership
• Financial planning,
budgeting and cost control
• Business process
improvement
 FAILURES
• In December 2000, the waiting list had crossed 36 lakhs - an
all-time record - while dues at the end of the last fiscal were
15 % of the total income.

• Since 2003, BSNL, was reportedly facing problems in retaining

its existing landline customer base.

• During 2007-08, around 1.8 million landline connections were

surrendered by customers.

• Revenues dipped by about 12 percent in 2008-09 to over Rs.

33,000 crore
• In Feb 2010, the employees' associations of BSNL have sought
Prime Minister Manmohan Singh's intervention, demanding
change in management and induction of professionals in the
Board to operate the state run telco.
BSNL wants Sam Pitroda, IT adviser to PM, to take up their
case.

• Last Mile Unbundling :

2009-10, Bsnl employees' associations opposed unbundling of
last mile connectivity due to potential loss of jobs. Thereby
leaving BSNL handcuffed.
 REASONS OF FAILURE
• Aggressive competition posed by Bharti Airtel ,Vodafone and RCOM
• Deteriorating Market Share.
• “I am the King” attitude of BSNL
– DoT thought it was doing favour to Indians by providing landline connections
– No facilities , special offers to the customers
• No technology alternatives
• Political interference ,red tape and sluggish decision-making
• High Employee costs (30% of its revenue)
• Absence of professional management at the Board level at BSNL
• CRM, CSAT?
• No confidence of the organisation with its employees' associations .
Change with the Changing Time
INTRODUCTION OF NEW SCHEMES
INTRODUCTION OF NEW SOLUTIONS
 FRANCHISEE MODEL
• BSNL bill payment service (BBP)
– based on franchisee model
– works round-the-clock
– based on electronic payment method
– totally secured and reliable
– No extra cost burden to customers.
– Pune is the first city in the country to float the service which will be
introduced in other cities soon.
 BSNL Begins FTTH Rollout
• BSNL-Sterlite Technologies Rs 372 Crore
contract.
• BSNL, one of the largest telecom service
providers globally, will be the first telco in
the country to deploy commercial scale
Fiber-to-the-Home network.
• The current phase of the FTTH network
would be capable of providing high-speed
internet, IPTV solutions, VoIP, and other
VAS to about 500,000 subscribers
• BSNL Blackberry

• Live Tutor
– The concept is to provide online learning from
kindergarten to 12th standard. To have this
facility in the phone one requires broadband
connection, personal computer, and videophone.

• Wimax services
– Internet facilites offered on the move with
unlimited access. 
 BSNL : WiMax roll-out
• BSNL wants to be the first to roll out
wireless broadband on the 2.5-Ghz band.
• While private telecom companies have to
bid for spectrum in this band, BSNL and
MTNL will get automatic allocation.
• Broadband services on WiMax technology
promise high-speed Internet access on
laptops and mobile handsets .
• Two-stage bidding
 BSNL : Revamp Branding Strategy
• Uniform Branding for various products and services
• Changed its main logo
• Previously BSNL used different brands names for their product and
services
• The move was in line with the industry trend where large integrated
operators are offering all of its services under a single brand
• BSNL was a well known brand even in remotest of villages, its other
brands such as Excel and DataOne were not as popular, a single identity
would make it easier for consumers to relate to the brand
• The move also help BSNL in promoting only a single brand rather than
creating a separate marketing strategy for individual brands
Before Now
 Before Now

MPLS VPN

WEB Hosting services

BSNL Triplay
 BSNL : Revamp Branding Strategy
• Uniform branding also makes it easier for BSNL brand managers to work
on creating an identity in the minds of consumers
• With so many operators vying for a market share in this highly competitive
sector, it was important that BSNL does not confuse its subscribers with a
large number of brand names
• Uniform branding simplifies it and enables BSNL to stand out as well
known brand across the country
• Change their brand ambassador
• Spend around Rs100 crore in advertising and marketing
 BSNL : Revamp Branding Strategy
• Cost Implementation for Rebranding was 90 Crore
• Benefit after Rebranding, Net profit before 2007 was 7805crore, Net
profit on 2008 was 9939crore
 Revival through JVs and Tie-ups
• Bharat Sanchar Nigam Ltd has chosen the US-based SOMA
Networks to deploy the world’s largest mobile WiMax
network in India
• Bharat Sanchar Nigam Ltd. (BSNL) and Mahanagar Telephone
Nigam Ltd. (MTNL) are in talks to form a strategic partnership
for offering international long distance services
 BSNL Wireline Broadband Deal
• 8,61,459 wireline broadband connections with speed of at least 512 kbps
always on, shall be provided by BSNL with subsidy support from the USO
Fund.
• The rural broadband connectivity will cover Government, institutional
users, gram panchayats, higher secondary schools, public health centres
and individual users.
• BSNL will set up one kiosk from each rural exchange for providing public
access to broadband services.
 RESTRUCTURING
• PAST
– Lack of well-defined strategy
– Lack of shared aspirations
– Lack of core teams
– Lack of performance linked incentives
 Restructuring…
• Initiated by Corporate office
• Various initiatives
– PCO retention (“Dosti”)
– Mobility sales and distribution (“Vijay”)
– Revenue assurance (“Kuber”)
– Cost efficiency (“Sanchay”)
• Core Teams
– Project Sponsor
– Project Champion
– Project Coaches
 Restructuring…
• Project Sponsor
– Director/Executive Director in Corporate office responsible for
providing overall guidance , monitoring execution results, providing
policy inputs and resolving key issues that require senior management
attention
• Project Champion
– CGM/GM level officer at corporate office responsible for monitoring
overall execution results, preparing policy guidelines, resolving key
issues on day-to-day basis
• Project Coaches
– GM/DGM level officers at corporate office responsible for day-to-day
execution of project, working with circle/SSA level teams, monitoring
results at circle/SSA level, troubleshooting issues on day-to-day basis
 Restructuring…
• Restructuring with the help of consultancy from BCG
• Project “SHIKHAR”
• Objectives :
– Develop a shared aspiration
– Well defined strategy
– Focus on Core and new businesses
– Defining right organizational structure & HR policies
 Restructuring…
• Reviving Enterprise Business
• Increased focus on the newly formed business verticals
– Managed Network Services
– Tower Sharing

• Other Plans
– Outsourcing
– Overseas operation

TO BECOME “NUMBER ONE” GSM PLAYER BY THE END OF 2010

Thank You…