Forget 2006... Pardon TM for scrapping the bottom of the barrel
Should DAWO, the Super CEO with multi-layers of CEO beneath him, think of another round of re-org at Telekom Malaysia, the target should be the heads who are in charge of Employees Relations and Corporate Communications.
They should quickly take a temperature check of the unhappiness and resentment currently brewing within the humongous organisation, and the HR and CorpComm are obviously not listening well.
'Surat layang'
Evidently, internal communications across the organisation must be very weak as the employees are making complaints against DAWO and they trust what Screenshots published more than what the HR and CorpComm guys have told them through their official communications channel!
It has since come to my attention that a group of low-ranking TM employees had sent an anonymous email, dated November 21, to the Prime Minister, the Deputy Prime Minister, the Finance Minister, Deputy Finance Minister Awang Adek, the Khazanah Group CEO, and the TM Chairman.
The email appealed to the Putrajaya head honcho to have DAWO removed as the Group CEO of the GLC, accusing him of running TM to the ground with his management style.
To rub salts to the wound, DAWO and members of TM's core management and the Board were cc-ed a copy of the email.
And the substantiating documents, holy cow, were none other than three previous Screenshots blog entries, here, here and here.
It's against my principle to circulate a surat layang, but it didn't go unnoticed that employees are fighting on butter-and-bread issues that, when left to breed undeterred, will trivialise a whole good-looking re-org plan that GLC boys attempt to attempt. And for a blogger's entries -- I can assure you they were written based on available documents and facts -- to be cited as supportive documents to Putrajaya, I am both flattered (am I that 'influential'?) and saddened.
DAWO should have checked this internally. It shouldn't have happened.
But there are larger issues -- issues about a dysfunctional management regime -- that need to be looked at serious.
A triviality of employee woes?
Is DAWO failing to meet the financial KPIs and trying to scrap the bottom of the barrel to survive?
For example, from the documents I have viewed, the low-ranking employees -- mostly the backroom guys -- are complaining that they are now given targets to sell Celcom XPAC starter kits and TM Net Streamyx accounts when there are internal sales and marketing, and resellers, paid incentives to do the job
They are complaining that their monthly RM30 entitlement to free mobilephone calls will now have to be justified.
They are complaining that employees are being hauled up to settle old TM bills that date back to over 10 years ago, which had already been provisioned and written off.
Amidst the ranting, they are also complaining of too many outsiders cronied to DAWO -- some with lesser telecoms experience but tagged as 'young, smart, professional managers' -- have parachuted into TM, blocking the loyalists' upward mobility.
Astonishing! Past mismanagement and current mishaps, all in one. A perfect recipe for chaos!
Quick fixes, no pun intended
If DAWO is indeed scrapping hard the bottom of the barrel, let me offer him some better, less painful ways.
#1: Big money promo.
Before TM embarks on another million-dollar project, like the one that was commissioned to clean-up the customer database by giving away free cars and a jackpot to the end-users, make sure the success rate is not hovering around 50% with weeks left before the expiry date.
The implementing unit must provide a Plan B. Give the project vendors their KPIs, squeeze them if they failed to deliver. Demand a money-back scheme if the vendor's plans don't work.
That will fill-up the TM coffers much faster than squeezing the employees in the backroom for their monthly free-call entitlement and selling product packages.
#2: Decentralise the employees.
Menara TM, which looks good from CorpComm perspective, is expensive to maintain. There are far more cheaper premises out of the prime zones of real estates.
Sell off Menara TM and lease it back, the way MAS did to their aircraft, and the Treasury the sucker. Maintain the core management units within the building but rent out the excess space to more high-yielding corporates like DaimlerChrysler (Mercredes-Benz) and Unilever, who are already occupying the floors.
The rest of the employees can be sent back to where they work, the telephone exchanges.
If they have to account for the RM30 free calls entitlement, they won't complaint of a low-cost workplace. If there is industrial unrest, the HR and Employees Relation folks should function to kautim it.
Since most of the PSTN and network exchanges are on fibre and no more copper wire, internal communication no longer faces hindrance even on realtime.
Further more, it has been a mistake to relocate TM staff and centralise them in Menara TM. parking is horrendous not only for the employees, but the customers and business partners as well.
#3: Kill off TM Net.
First of all, hide and burn that Karamjit Singh/Lee Wei Lian article in the year-end issue of The Edge that says 2006 has been a poor year for broadband. Nobody sees it so nobody would know it.
TM has broadband as near-monopoly, so why worry? Forget about broadband, meeting the KPIs is top priority for DAWO, or so it seems.
Drop the idea of floating TM Net on IPO, TM Net's broadband business can now be re-aligned. There are perhaps about 160 TM Net staff in Cyberjaya and Kelana Jaya. Make TM Net Sdn Bhd a non-entity, strip down the head-counts, relocate them to Menara TM.
Adopt anti-competitive conduct and assert a predatory pricing on competitors who want wanted to leverage on the unbundled local loops. Zamzamzairani, with no CEO at TM Net and no COO at TM Wholesale, should have a freehand to whip up the cake and eat it.
#4: Off-load burden and 'share burden'
That's the mantra Putrajaya used when toll concessionaires increases their charges come January.
In the interim, staff housed at Menara TM could be moved to the TM annexe buildings at the neighbouring Menara Cygal. Rush the contractors to complete the remainder two buildings and start 2007 with bang.
Parking? Menara Cygal is currently charging RM3 a day, so they employees must have been fully conditioned and they won't complain.
BTW, by so doing, DAWO may help TM get some revenue from the staff again. Who says accountants know nuts about telecoms?
If Putrajaya is sincere and correct, it's the age of 'sharing burden' after all.
Before TM embarks on another
Comments
Firstly, before I make any comments, kindly allow me to confess that I do not really know TM's business and I don't really care.
However, as for DAWO, I have had the opportunity to work with him in rather close quarters in his previous job - AND I have to say, everyone I know have the greatest respect for DAWO as a human being.
His ethical stand is second to none. To me, it far outweighs his business shortcomings (if any).
Honestly, Malaysia and the GLCs can do with more DAWOs out there.
JEFF OOI says: This piece of news should be conveyed to the NUTE leaders and members, and the low-rung employees in TM who are disgruntled.
Posted by: AverageJoe
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December 23, 2006 07:54 PM
GLCs are one race business, mana boleh?
Posted by: simon
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December 25, 2006 01:01 PM
The following are my views
1) Issues with vendors
This is largely TM's fault. Most of the time management don't understand what is required in order for a project to be successful. They would force vendors to timely finish the project despite every indication that it is impossible to do so without taking extra measures. They leave vendors to do whatever they want, and only find out later thet things don't work. Simply put, there are a lot of incompetent managers who can't work out simple logical conclusions. This is because the way promotions are conducted, it's generally not the best and brightest who are promoted, it's more towards seniority and luck.
2) Centralization vs Decentralization
There has been a lot of improvement over the years with centeralization. Decentralization would only push back TM towards the JTM era, not a smart move. Putting people who design and manage the network close together in some manner offsets the problem of incompetent management.
3) Menara TM
I think TM has no reason to sell it, unless it has serious cash flow problems. It's an asset, in the long run it's probably more worth it to own a building, rather than to lease it. They've also managed to keep it as their corporate identity despite leasing a lot of floors to external customers.
4) Free calls entitlement
Having run out of means of earning money from customers, TM is trying to make money of it's employees. It's quite sad actually.
5) TMNet
Bringing back internet service into TM is a smart move, considering the way TM work where incompetent GMs instead of working together to solve problems would bicker endlessly, and senior vice presidents will just sit around and watch, not really knowing what to do. Normally there'll just be status quo until CEO or COO demands a result, even then most likely there'll just be the initial activity which soon fizzles out.
6) Top management
It's good that Wahid is replacing top management, however the new ones must be up to the task, there is no point to sack the old morons and replace them with new ones.
Posted by: cic_lemur
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December 26, 2006 01:44 AM
My two sen worth:
1. TMNet
Also agree that it's good TMNet now being subsumed into the TM Group. It had so many problems in misalignment with go to market strategy - TMNet sales went to town with products, but had no say in the backend infra that was to deliver the product. This time, managers have to ensure that the whole value proposition is sound and that the service is fully tested and available before sales overpromise to customers. Also business customers experienced the multiple channels of TM (TM Retail, VADs, TMNet, and sometimes Celcom) selling them the same service. Management had better get that aligned. Perhaps also this time, TM can work out its voice/data bundles properly, and reduce duplicating capex efforts
2. Menara TM
I disagree that they should sell off the building. They are not in a cash crunch position like MAS, and having all of the major departments in the building has helped them communicate and work together better. It still is a good corporate icon for TM and helps to give a good impression to customers, partners and vendors. Parking may be a problem, but it shouldn't be a primary reason to sell off the building.
3. Broadband
As the people bemoan the sad state of broadband in this country, I guess I will have to propose a solution which is counter-productive to TM - enforce Local Loop Unbundling (LLU). LLU has proven to help the broadband market in Europe and the US. National broadband development is a job which is just too big for TM alone, and other players, from competitors to startups should be given a crack at helping drum up the business.
I am sure MCMC is seriously looking into the issue and their proposal for bitstream unbundling has been pathetic at best. The business model for that type of unbundling has remained unattractive and has forced alternative competitors to resort to wireless solutions which unfortunately is far inferior to wireline-based solutions.
Of course there must be fair provisions in place to prevent competitors simply cherry-picking only the best exchanges, but I am sure that there is a wealth of experience in Europe which MCMC can learn from. Who knows, a bit of competition may be good for TM itself.
4. Top management
TM employees have to shed their expectation of promotion based on tenure and seniority. It is necessary to recognize performance and execution - if this only comes from 'young, smart, professional managers' who 'parachute' into TM, so be it. Having said that, I doubt Zam can be considered immature and inexperienced. He was from TM before and he held several management and leadership positions in companies (global ones at that), so my expectations of him would be that he should know his stuff pretty well.
The old guard and 'loyalists' in TM may complain about their way being blocked, but for all their tenure in the company, they have not been able to deliver anything new, exciting or challenging to the market. I would even conjecture that they are partly responsible for the foot-dragging which is holding up TM's ability to rework itself. If they can step up to the plate and prove that they are equally, if not more capable that these 'young Turks' then they should have no problem justifying their position in TM.
Posted by: Razak Hussein
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December 26, 2006 10:07 AM