Digitel Company Case Study

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With increasing number of telecom players there is a raging price war in the market, the voice revenue is dropping with people switching to applications like WhatsApp which make use of data services. Telecom companies have in the past, been investing heavily on infrastructure with the inclusion of Spectrum costs. The highly dynamic nature of the technology today – with incremental advancements from 2G to 3G to 4G, continuous growth in user base and deeper penetration in rural markets demand significant investments in opex and capex. [pic 2]

Digitel is thus in the need of people who can innovate for customers and build services that they need and are willing to pay for. The profile of these people should be:

• That of end user technology creators rather than telecom infrastructure providers
• Hiring people from ‘Mobile First’ generation and/or those who understand the dynamics of the mobile generation, can conceptualize and create services for future
• Keen understanding of ever evolving mobile technology, app development and distribution are essential
• High focus on customer centricity is an essential trait of this talent

This kind of transformation is usually better executed outside of the parent company. This may be achieved by creation of a separate identity, company or sub-brand so as to grant people the creative freedom to build something new. This may also help attract the right talent as joining the parent telecom company may prove to be a deterrent for some.

Given that Digitel has received various accolades, has high employee engagement and low attrition; means that all the HR processes and the basic framework is in place. The need is for these to be re-calibrated to support business. This may be done via:

• Manpower Rationalization - Define an organization structure which suits the current and future business. Map the right person to the right role. Right size the company. Lateral hiring of key people from backgrounds in consulting as well as from competition. Identify key people in the new structure with a succession plan designed for them. Initiate a special retention plan for ‘tent poles’.
• Variable Pay – Revise the current Rewards & Recognition program and revamp to make them more relevant. Include rewards around ‘productivity’ - unit wise / business wise. Conduct a fresh salary survey and look at correcting compensation so that the HiPo’s become less vulnerable to attrition.
• HR Scorecard - Have metrics which measure clear ROI month on month.
• L & D - Training programs specialized for sales/customer service personnel. Revamp the competency framework of the company and Campus-Industry connect programs which help instil learning behaviour & company specific knowledge/skills.

Chandrika’s focus should be to make this happen in next few months.