| dc.description.abstract | It was July 2008, in a conference room at the headquarters of CLEC Telecom that the idea for this research was conceived. I was meeting with my new boss, Sunil Bhojwani, to understand the team’s raison d’être and determine my new role in meeting the team’s objectives. Mr. Bhojwani was a visionary manager; he wanted to be able to manage his unit as though it was his own business, working to reduce cost and make the unit profitable. This would in turn guarantee that the unit’s activities aligned with the overall corporate strategy to reduce cost. What was missing was a pragmatic framework; this is where the research comes in.
The idea to manage a business unit with full Profit/Loss responsibility down to the line manager’s level is a straightforward strategy to conceive but not so much to execute. The lack of supportive documentation to assess the impact of the team’s activities vis-à-vis the company’s strategy presented a challenge. How are the team’s core activities impacting the bottom line? Is the team’s strategic plan justified? Or is the resulting savings a drop in a bucket? These concerns could not be accurately address using pure operational data; there was need for a better approach.
For example, reporting the number of T1s disconnected monthly would not be an accurate measure of savings because of T1 cost variability – A T1 can cost anywhere from USD 3.00 to USD 4,000.00 monthly. How can the impact of a T1 disconnect activity be appraised pragmatically?
The standard financial reports are too vague, as is the team’s interpretation of them. What is needed is a new framework with better metrics. Metrics that could capture operational as well as financial information to better reflect the team’s financial impact. There was need for a new way to view the business and that is the essence of this research project – to develop a Pragmatic Business Analysis Model (PBAM) for telecom operators.
This report is a blend of theoretical research and empirical learning that resulted from the implementation of PBAM at CLEC Telecom. The model is primarily geared towards line-level managers but the benefits can be realized throughout the vertical management chain.
The research spanned multiple semesters, starting in the fall of 2008 and concluding in the spring of 2010. Much of the study revolved around empirical learning through data collection, analysis, monthly reporting, and continuous improvement of the model. Focus was on the usefulness of the proposed metrics to assess the business impact of an operational unit.
The research project was a tremendous success. CLEC Telecom line managers use PBAM to manage their unit as though it was their own business. It has boosted confidence and determination in tactical project management of cost saving initiatives. Strategic planning can now be performed at a level where the execution of it is required! PBAM infused the organization with a sense of financial accountability and ownership down to the line manager and individual contributor levels. | |
