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Telkom talks turnaround

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Port Elizabeth, 02 Sept 2014
Telkom's turnaround process is an indefinite process that will see the company continually reinventing itself, says chief operating officer Brian Armstrong.
Telkom's turnaround process is an indefinite process that will see the company continually reinventing itself, says chief operating officer Brian Armstrong.

Over the past six months, Telkom has been working on a focused programme of work it hopes will win customer affection and secure loyalty as it ramps up turnaround efforts and tries to reposition itself as a broadband leader.

This comes as the company - SA's telecoms backbone - grapples with a decline in its traditional fixed-line business, historical negativity around the brand and corporate governance issues.

Speaking at the Southern Africa Telecommunication Networks and Applications Conference (SATNAC) in Port Elizabeth, Brian Armstrong, Telkom's chief operating officer, this morning outlined the company's plan of action, starting with addressing the critical issues customers have expressed they want fixed.

"We went off the boil in terms of customer experience, so for the last six months we have really been working on what customers have been telling us," said Armstrong.

Turnaround strategy

In order to effectively turn Telkom around - a process initiated in earnest last year - Armstrong said the company would have to get a number of things right.

"There is often talk about how companies are innovating, but Telkom's turnaround is not only about innovation - it is about getting the basics right. We don't need to reinvent growth; we just need to execute the basics."

The company's turnaround strategy, he said, is focused on "seamlessly connecting South Africans to a better life" by providing converged ICT solutions, while at the same time optimising shareholder value.

"In terms of our three go-to-market strategies, we want to be at the centre of the digital home lifestyle, lead in business, enterprise and government, and we absolutely have to achieve pre-eminence on the wholesale front."

Armstrong said, at the end of the day, Telkom has to tie a number of things together - and get them right - if the company is to achieve its goals of becoming a commercially sustainable company and a broadband leader in SA.

Focusing on the commercial side, Armstrong said Telkom needs to:

1. Deliver a superior customer experience.

2. Have the right broadband products to meet consumer needs: "There is not one-size-fits-all."

3. Become a "great" Internet service provider (ISP): "If content is backhauled to a poor ISP you won't be a great broadband leader."

4. Offer compelling content and value-added services: "Consumers must want to use the bandwidth you give them."

5. Revive the Telkom brand: "You can have the best operational processes and services, but if your brand is damaged you will struggle to be a leader in the market."

Image restoration

Telkom's programme of work has revealed customers want the company to:

  1. Redesign the store experience.
  2. Rebuild the company's online presence.
  3. Upgrade contact centre skills.
  4. Improve the on-boarding experience.
  5. Deliver quicker service installation.
  6. Revamp self-service options.
  7. Employ better fault diagnostic tools.
  8. Implement shorter fault restoration times.
  9. Invest in ISP network capacity.
  10. Communicate often and clearly.
  11. Manage high users.
  12. Remove network bottlenecks.

Faced with the sizeable task of repositioning its brand in the minds of consumers, the telco says it will focus on customers as its main thrust.

Armstrong noted the company is tackling three drivers of customer advocacy, including value proposition, user experience and service experience.

"In customers' minds, connection functionality, service responsiveness and timely resolution of issues are the key drivers of customer advocacy."

As part of Telkom's programme of work - a process Armstrong said is starting to yield positive anecdotal evidence - the company has learnt customers feel it needs to "fix" a number of things, from the shopping experience to the end-user experience.

Armstrong said the company realises it has to get its brand right if it is to compete and stay relevant in what is one of the most competitive markets in the world, and the only one in which deflation is expected, despite increasing speeds and services.

The market is already starting to see Telkom is doing the right things, noted Armstrong. "First of all, [our improved] share price is an obvious indicator and, while there is still some heavy lifting to do, we are starting to see the green shoots of a 'new age' in customer service at Telkom. It is important for us to break from the past."

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