CaseStudyAHardSolution,ASoftLandingSinceitsprivatization,aEuropeantelecommunicationscompanyhadworkedhardtoimproveitsproductsandservicesaswellasitsgeneralreputation.Asaprivatizedentity,thecompanyhadtobemoreresponsivethanbeforetomarketforces,andthiswasnosecret.Ontheotherhand,throughitsregulatorypowers,thegovernmentremainedsomethingofashadowboss,oftenworkingatcross-purposetomarketforces.Thecompanysoonfounditselfbetweenarockandahardplace.Itshopelayinwellconceived,wellacceptedchange.Thesignificantcostsassociatedwithofferingahighlevelofservicehadbecomeaproblemforthecompanybecauseindustryregulationforcedittoholddownprices,nomatterhowcostlytheservicesdemandedbythemarketplace.Thisconflictforcedthecompanytoexaminehowtoprovideservicesmoreefficientlywithoutreducingquality.Oneobvioussolutionwastoimprovetheproductivityoftheworkforce.Internalstudieshadshownthatmuchoftheengineeringstaff’stimewasroutinelylost--forallsortsofreasons.This“leak”offeredaperfectopportunitytotrytochange.Toinvestigateandmakerecommendations,thecompanyassembledaprojectteamofpeoplewhoactuallydidthejobsandengagedintheprocessesthatneededreengineering.Thisalonerepresentedanimportantfirst:Inthecompany’shistory,noprojectteamhadeverhadsuchanintimateknowledgeofitsissues,suchaclearstakeintheoutcomeofitswork.Thesewerethepeoplewhowouldgatherinformation,setstandards,and,mostimportant,convincetheircolleaguesthatthedraftsolutionswereappropriateandachievable.Theteamobservedcurrentworkmethodsandanalyzedvastquantitiesofhistoricaldataoneveryaspectofthebusiness.Throughthisdemandingprocess,theextentoftheopportunityforchangewascloselydefined,andthisinturnpermittedtheestablishmentofbenchmarksagainstwhichfutureperformancecouldbemeasured.Eventsmovedquicklyfromthatpointforward.Bypersuadingkeystakeholders--specificallymanagementandunionleaders--ofthegoodsenseofthechangeproject,theteamwasempoweredtoinitiatemajorchange.Theimplementationplanwassosoundlyconstructedthatthechangeteamsawitthroughinwhatwasperceivedasashorttimeframewithoutdisruptionstothebusiness.Thenewlyenvisionedoperatingmodelpromisedtoyieldsignificantfinancialbenefits--andbeganvirtuallyatoncetochangetheattitudesandapproachofengineersandofthemanagersresponsibleforengineering.Themodelincludedacontrolsystemdesignedtoquantifyonadailybasistheperformanceofengineerings.Linemanagerswerenowabletoexaminetheprevious24hours’performanceintermsofservicequalityand,forthefirsttime,intermsofproductivity.Stakeholdermotivationwasnotlefttochance.Targetedcommunicationsspecifictoeachgrouprepresentedavitalstepinassuringacceptanceandcooperationduringthismajorp:\fcs\oc\00tool\material\deliver\casestdy.doc5/4/2025Page1change.Coachingandtrainingwereavailablethroughouttheimplementation.Aseachmanagercameonline,heorshewascoachedintheusageofthenumbersandinactionsthatwouldimproveperformanceEngineerswerenotpositionedasthe“victims”ofthisnewanalysis.Onthecontrary,theywerebriefedonitsmeasures,andeachwasofferedaweekofon-the-jobtrainingtostepuptheiractivities,whereneeded,totheproductivitycriteriabuiltintothecontrolsystem.Further,thelinemanagerswereheldco-responsibleforproductivitygains;noonecouldsitbackandwaitforsomeoneelsetodemonstratevirtue.Theprojectteamwasgratifiedtoobservethatthecompanyasawholebegantomeasurenotonlyservicequalitybutalsodailyproductivity.Thiswasevidenceofthemajorsuccessofthechangeproject:Itgeneratednotonlycontinuallyimprovingmeasuredlevelsofproductivitybutalsoculturalchangeintheorganization.Nowwidelyaccepted,productivitynumbersarecitedindiscussionsofqualityofserviceresults,andthebalancebetweenqualityandcostisbeingaddressed.Withinitsownsphere,theprojectyieldeda20percentincreaseinproductivityof1,400engineers--withmoretocome.p:\fcs\oc\00tool\material\deliver\casestdy.doc5/4/2025Page2
