Verizon_Case

Verizon Case Study Deploy high speed fiber to arrest shrinking wireline biz Deployed 4G LTE to stay at the cusp of technological changes Established largest global IP backbone Pioneered network ecosystem way of working Acquisitions where the company did not have expertise Structure Separate wireline and wireless structures Design teams restructured to ensure consistent experience across interfaces Industry-based segmentation for Enterprise Overlapping geographical footprints for Wireline and Wireless Enterprise business in both Wireline and Wireless businesses Strategy One Verizon Systems Ability to work as a “collaborator” with other companies React quickly in Wireless biz. Not an inter-connected consumer brand Shared Values Change from technology out to a customer opportunity culture Shared Success - Solutions, Service and Sustainability New processes to shorten device certification Compensation based on total company stock performance Skills Style Vast majority of employees were located in the US. Unionized staff in wireline Wireline – slower, more bureaucratic, less customer-centric Wireless – faster, flexible, more entrepreneurial Rotation of employees across units Staff Long-term oriented Empowering frontline to seek process innovations Dialogues with top employees Culture of greater links and collaboration Q1 Progress and accomplishments in last 3-4 years Built a network ecosystem – Innovation Center, Venture Forum Partnership with Google & Motorola – Droid project Investment for the future – Fiber-optic services, 4G LTE, Global IP backbone, Marketing innovation of featuring the network and the suite of products it enables Key acquisitions – CyberTrust and Terremark Established corporate-wide Credo How well Seidenberg led change and handoff to Lowell Adam Identified and empowered key change agents to help transform the business Quickly reacted to the developments in the environment and ensured action-oriented approach; Established company’s vision for the future, and established Verizon in the growing Wireless business, from a traditional wireline entity Communication of vision - ' Empowered business leaders to make necessary changes to collaborate across Wireline, Wireless and Enterprise entities Droid project successfully managed – ensured some early wins No drastic changes implemented in Wireline entity to ensure smooth change Groomed McAdam by appointing him COO and designating him as CEO to ensure smooth transition. Also, hand-held McAdam post becoming Chairman Q2 Effectiveness of change agents. Android Seidenberg himself led the Android collaboration along with McAdam, Lanman & Stratton. All these change agents ensured necessary changes were made in the organisation to make the Android project a successful one. Took necessary risks, changed processes, ensured openness to partner ideas. FiOS Bruno & Mudge were the change agents in the FiOS project. Restructured teams, put in new processes, aligned different functions, involved various stakeholder in developing the ecosystem 4G LTE Built a network ecosystem, established innovation forum & 4G Venture Forum, speeded go-to-market, ensured flexibility, built an effective team, took risks in not protecting intellectual property Enterprise Acquired companies to build capability, simplified product development process, reorganized around verticals, drove collaboration between Wireline and Wireless entities, changed compensation structure Recommendations to McAdam Drive greater synergy between Wireline and Wireless businesses – processes and culture Involve greater number of people in driving change Higher degree of communication and involvement across the organisation Q3 What could limit performance' Identifying emerging opportunities will be critical – Verizon does not have a structured approach to manage this While Verizon has global ambitions, they do not have a global footprint, and most employees are located out of the US. Collaboration across business entities is more driven by the top leaders than being a organisation culture What else to be done (people, process, culture) to anticipate and deal with challenges and surprises' People: Verizon should focus on capability building to make them ready for the future. Also, there should be greater rotation across business entities so that this generates better synergies. People with experience in overseas markets should be taken. Process: Verizon needs to establish a clear incentive for collaboration across businesses. Processes to drive innovation and reward thereof to be established. Back-end processes across businesses should be merged. Culture: Greater customer focus should be built in to ensure the organisation has its ear to the ground. Risk-taking should be encouraged. Q4 Two actions from McAdam’s agenda: one to build and diffuse an important element of change, and one dramatic new action to accelerate change Evolution McAdams should bring in a larger buy-in for the changes required by inspiring them to embrace change. Towards this, employees will have to be trained and their skills enhanced to allow them to contribute in the changing environment. Revolution Enterprise business has huge potential for synergies between Wireless and Wireline. Large enterprise customers will seek onestop solutions, and given the extremely different culture between Wireless and Wireline, driving synergy is a slow process. To maximise the opportunity, Enterprise business should be structured as a different entity comprising both wireline and wireless businesses, rather than existing within these businesses.