Telekom Malaysia announces VSS
This is now old news and well, yeah, it was announced yesterday - but it fits with older entries from me. Let me comment about it.
Telekom is or was a complacent company. I had my problems with its 5-pronged strategy, but this was more regarding the priorities and not with regard to the need. The company needed to change and they did.
The acquired Excelkomindo in Indonesia, and went on to Pakistan. It would fit with its strategy to concentrate on Asia to move more aggressively into India, more than it has done already with the investment into Idea Cellular. So far it is fine.
The company is old, and that includes its employees. The average age structure in Telekom is above that of its competitors, believe me. A little observation of the company from the outside confirms this. But it has a very dynamic CEO, one who has moved other companies before. So yes, he will be able to initiate change and it would surely be good if Telekom can reduce their manpower by ten to twenty percent. This will put it on the same footing as its regional competitors - but don't think that they will stop and wait for Telekom. May be another move by SingTel is already in the cards.
Anyway, the challenges of a VSS are manifold and the press release yesterday didn't help. First, Telekom needs to take care that it keeps those employees which are high performing. Let's hope that they have talked to them already. Otherwise, these high performers take the money and start to move on. They won't have a problem to find a new job, if they are good. If this happens, Telekom would be left with all those employees that are low performing. Not a good move.
Secondly, lets hope that they don't follow the advise of one of the analysts mentioned in The Star. This one said that more VSS could follow. This would only lead to uncertainty in the organisation, and unnecessary rumours and thus hopple the envisioned operational performance improvements. Employees would just sit and wait until the next VSS comes around. And the next one might not even be better. So please Encik Datuk Wahid, make the deal clear to your employees. In these situations, please also communicate, communicate, communicate. Advise those who take the VSS, on career opportunities and other opportunities. Be a caring employer.
(By Asia Business Consulting)
Telekom is or was a complacent company. I had my problems with its 5-pronged strategy, but this was more regarding the priorities and not with regard to the need. The company needed to change and they did.
The acquired Excelkomindo in Indonesia, and went on to Pakistan. It would fit with its strategy to concentrate on Asia to move more aggressively into India, more than it has done already with the investment into Idea Cellular. So far it is fine.
The company is old, and that includes its employees. The average age structure in Telekom is above that of its competitors, believe me. A little observation of the company from the outside confirms this. But it has a very dynamic CEO, one who has moved other companies before. So yes, he will be able to initiate change and it would surely be good if Telekom can reduce their manpower by ten to twenty percent. This will put it on the same footing as its regional competitors - but don't think that they will stop and wait for Telekom. May be another move by SingTel is already in the cards.
Anyway, the challenges of a VSS are manifold and the press release yesterday didn't help. First, Telekom needs to take care that it keeps those employees which are high performing. Let's hope that they have talked to them already. Otherwise, these high performers take the money and start to move on. They won't have a problem to find a new job, if they are good. If this happens, Telekom would be left with all those employees that are low performing. Not a good move.
Secondly, lets hope that they don't follow the advise of one of the analysts mentioned in The Star. This one said that more VSS could follow. This would only lead to uncertainty in the organisation, and unnecessary rumours and thus hopple the envisioned operational performance improvements. Employees would just sit and wait until the next VSS comes around. And the next one might not even be better. So please Encik Datuk Wahid, make the deal clear to your employees. In these situations, please also communicate, communicate, communicate. Advise those who take the VSS, on career opportunities and other opportunities. Be a caring employer.
(By Asia Business Consulting)
posted by Andreas @ 7:13 pm
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