PERFORMANCE

IMPROVEMENT ANALYSIS
CASE STUDY OF CYBER INTERNET SERVICES

SYED EHSEN
MUSTAFA
FARRUKH ZAMIR
AHMED NADEEM
MUHAMMAD AZHAR
SAEED
AGENDA

Project Brief
Organization Profile
Objectives & Approach
Porter’s 5 Forces Analysis
McKinsey’s 7S Analysis
Corporate Performance Management
PROJECT BRIEF

CYBERNET’s analysis using

Porter’s 5 Forces
McKinsey’s 7S

Study of CYBERNET’s Corporate

Performance Management Initiative
ORGANIZATION PROFILE

Part of Lakson Group

Largest Internet & Data services provider
Provides IP/VPN, MPLS, Radio, Satellite, DSL
and Fiber connectivity services
Present across the country
350,000 valued customers
Serves more than 80% of the banking sector
1000+ employees strong company
OBJECTIVES & APPROACH

Learn lessons on performance improvement

Understanding of new approaches like
CPM, Baldrige Criteria and BSC
Identifying lessons and best practices for
similar organizations in the sector
Interviews with CPMO @ CYBERNET
PORTER’S 5 FORCES ANALYSIS
FARRUKH ZAMIR
PORTER’S 5 FORCES ANALYSIS

Supplier Power
Competitive Rivalry
Buyer Power
Threat of Substitution
Threat of New Entrant
SUPPLIER POWER

Upstream providers
Satellite connectivity providers
Prohibitive switching cost
Extreme competition
COMPETITIVE RIVALRY

Increased market competition from local

and international companies
Multiple broadband technologies
Market segment maturity
BUYER POWER

Small corporate sector -> Low margins

Expanding SMB -> Opportunity for growth
Choice factors
Quality of Service
Support services
Cost
THREAT OF SUBSTITUTION

De-regulation of telecom sector in 2001

Privatization of PTCL -> SMP
Niche operators emerging
Nayatel
DCN (Karachi, Lahore)
FTTH, Cable services (Worldcall, Brain)
THREAT OF NEW ENTRANT

Cost of entry is huge

License fees
Upfront infrastructure investment
PTCL DSL & IPTV
Mobilink Infinity & Wateen Telecom
LinkDotNet, Wi-Tribe are new entrants
MCKINSEY’S 7S MODEL
MUHAMMAD AZHAR SAEED
 MCKINSEY 7S ANALYSIS
• Developed in the early 80s by two consultants Tom
Peters and Robert Waterman working in McKinsey
& Company
• Basic premise of the model is that there are seven
internal aspects of an organization that need to be
aligned in one direction if it is to be successful
BASIC PURPOSE OF MCKINSEY’S 7S MODEL

• Improve performance of a company

• Examine the effects of future changes with in a
company
• Align departments and processes
• Implement a proposed strategy
MCKINSEY’S 7S MODEL
MCKINSEY’S 7S MODEL - STRATEGY
MCKINSEY’S 7S MODEL - STRUCTURE
MCKINSEY’S 7S MODEL - SYSTEMS

• Multitude of automation systems in use

• SAP – ERP
• Siebel
• Mac Project Management
 SAP

• SAP is used for Resource Management

 SIEBEL

Customer Relationship Management

 MAC

Project Management Application

MCKINSEY’S 7S MODEL – SHARED VALUES

• Customer Satisfaction is the top priority

• Corporate Social Responsibility
• Ethical and pleasing workplace laden
with trust.
• Healthy work-life balance for employees
MCKINSEY’S 7S MODEL - STYLE

• Built on Trust
• Cooperative management
• Helpful and employee friendly policies
• Great pride in work environment
MCKINSEY’S 7S MODEL - STAFF

• Specialist operations team

• Highly skilled knowledge workers
• Modern hierarchy and structure
• Less beauraucratic -> Profits!!
MCKINSEY’S 7S MODEL - SKILLS

• High focus on training and development

• Trained staff with years of experience
• Local and foreign trainings
• Skill development workshops
• Key Performance Indicators for above
CORPORATE PERFORMANCE MANAGEMENT
AHMED NADEEM
CORPORATE PERFORMANCE MANAGEMENT

What?
Why?
CYBERNET Approach
Five Principles of CPM
CORPORATE PERFORMANCE MANAGEMENT - WHAT

An Area of BI
Also known as BPM or EPM
Monitors & Manages
Revenue
ROI
Overhead & OPEX
CORPORATE PERFORMANCE MANAGEMENT - WHY

Because it provides
Planning & Budgeting
Financial visibility
Enterprise Analytics
Business Intelligence
CPM AT CYBERNET – HOW

Five Principle Strategy

1. Establishment of a CPM Office

2. Renewing Strategy & Commitment
3. Aligning Staff & Strategy
4. Improve Performance
5. Knowledge Management

Use new tools & techniques

◦ BSC Approach
◦ Baldrige Criteria
CPM AT CYBERNET – PRINCIPLE 1
ESTABLISHMENT OF A CPMO

Executive Sponsorship
CPM Office Staff
Ownership of CPM Processes
Collaborative Maturity
Ability to Learn
CPM AT CYBERNET – PRINCIPLE 2
RENEWING STRATEGY & COMMITMENT

Strategic Planning
Strategy Plan & Maps
Core & Adjacent Products and services
Operational Excellence
Customer Service Excellence
Corporate Effectiveness -> Baldrige Criteria
CPM AT CYBERNET – PRINCIPLE 3
ALIGNING STAFF & STRATEGY

Alignment of strategic objectives

 Deployment of SPMS
Development of HR Plans
Alignment of leader goals and employee goals
Coach & Counsel, reward & recognize
Individual & Team evaluations
Use of Balanced Score Cards
CPM AT CYBERNET – PRINCIPLE 4
IMPROVE PERFORMANCE

Plan, Do, Check and Act Cycle

Improving customer experience by
 Listening & Learning Program
 Technology Leaders Program
Prioritize Improvement Projects
Leverage Customer Facing Processes
Realize value from benchmarking
Performance Improvement Culture
CPM AT CYBERNET – PRINCIPLE 5
KNOWLEDGE MANAGEMENT

Develop KM processes
Leverage technology
Link KM with improvement processes
Share best practices with strategic planning
Share knowledge
QUESTIONS?