Our Global Telecom client is strategically focused on achieving customer-centric growth, innovation, and operational effectiveness by shifting from price and technology competition to aligning with customer value and needs.
In parallel, they are emphasizing cost optimization, targeting a reduction in People costs by $4 million. To achieve these goals, the client is proposing the merger of two subsidiary business units to address organizational challenges such as duplication, inconsistency, and a siloed, protectionist culture. Our tasks involve evaluating the case and implications of the merger and designing an integrated organization with an operating model that aligns with the strategic aims of unlocking additional revenue while maintaining an appropriate size and cost base.
We conducted a qualitative and quantitative analysis of the current state of the two business units, including a examination of cost and revenue data. We built a detailed cost model to identify efficiency opportunities, using it to model hypotheses, estimate the size of benefits, and enable data-driven decision-making.
Additionally, we facilitated workshops with leadership to map all organizational activities, scrutinizing areas for inefficiency and identifying duplication. Our designed operating model organizes the company as a Product Company with distinct Value Streams—collections of complementary go-to-market products aligned to similar customer needs. It includes a newly built Product Marketing function, bringing insight and intelligence to shape strategy and roadmaps. It also encompasses Engineering delivery teams structured around Chapters undertaking Agile delivery, with standard governance and IT-as-a-service provided by the CIO function.
We defined the detailed structure, accountabilities, governance, ways of working necessary to operationalize the model. Additionally, we outlined the necessary sequencing for implementation.
