Telkom has proposed a new executive committee structure to staff, which creates new positions and moves functions around.
The proposed structure, a copy of which is in ITWeb's possession, envisages what appear to be new positions, such as a head of strategy and regulatory, which will reside within the group CEO's office; a chief risk officer; a chief marketing officer (CMO); a CTO; and a CIO.
The CTO is set to be responsible for product and service development, mobile network operator sales, ISP sales, post-sales support and transfer pricing. The CMO will handle advertisements and other marketing-related responsibilities.
Below the CTO slot in the organogramare roles such as network build, and mobile and fixed network transformation, while Telkom Business, and mobile and consumer are slotted under the COO position, which is held by Brian Armstrong.
According to Telkom's Web site, its current executive committee comprises CEO Sipho Maseko, Armstrong, CFO Jacques Schindeh"utte, deputy to the CFO Deon Fredericks, chief of corporate and regulatory affairs Ouma Rasethaba, chief of human resources Thami Msubo, MD of wholesale and networks Bashier Sallie, MD of consumer services and retail Manelisa Mavuso, and MD of Telkom Mobile Attila Vitai.
In May, Telkom said Miriam Altman had been appointed as head of strategy, reporting to Maseko. Telkom says the three MD roles, which are not specified on its new organogram, are all provided for in the target structure but in some cases under different roles, names and organisational units.
Urgent focus
Telkom says it has undertaken a comprehensive business review, which confirmed an urgent need to focus its attention on areas of the business that are critical to its success.
For the year to March, Telkom reported total revenue of R33.1 billion, lower than last year's R33.7 billion, as decreased voice revenue, which dropped 4.7%, weighed on income.
Operating expenses, which include a R12 billion write-down as it sped up impairment of legacy assets, leapt significantly from R31.3 billion to R44 billion, dragging Telkom to a comprehensive loss of R11.7 billion, as it has to take the non-cash charge through the income statement.
Stripping out the impairment, operating expenses increased at a lower level than inflation, at 2.2%, to R32 billion.
Maseko, who joined the company in April, has said that Telkom is currently defining its mid- to long-term strategy and plan, as well as determining how to manage its wholesale and retail structural options.
"Some of the areas of focus were informed by the changing needs of our customers; increasing competitive landscape within the sector; evolving regulatory landscape; as well as the need to align and co-ordinate our activities towards the transformation and efficiencies of Telkom," says the telco.
Telkom adds that the "reconfigured organisational structure has been designed to ensure clear accountability, delivery and internal co-ordination to deliver these focus areas, and is a critical component of our overall transformation programme".
Maseko, speaking to ITWeb after its annual results presentation, said a new strategy would be unveiled in about six months, and it would begin making announcements as soon as each puzzle piece becomes clear, instead of waiting for the whole meal to be present, says Maseko.
Maseko added that Telkom would eliminate loss-making services and focus on areas that delivered returns. He said the group would also look at mergers and acquisitions, which it would self-fund.
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