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Leadership

Lessons from the cost transformation behind BT’s turnaround Logo cgma

  Samantha White |   Free |   AICPA |   27 May 2015 |   CGMA.org

Tony Chanmugam, FCMA, CGMA, became group finance director of British Telecom Group in 2008, during turbulent times for the company. Over the past several years, the group has undergone impressive growth. Chanmugam shares secrets of the transformation.

Topics covered:
  • Management accounting: Leadership: Team building, Expert

6 Comments/Reflections

Jonathan Cowell

Jonathan Cowell Sep 2019

Interesting article. I can certainly vouch for the comments around using external consultants, having no skin in the game means that real change is often not sustained.

I always remind my team that they can be catalyst for change in the organisation, not just a passenger and not just sitting on the side-lines keeping score. Sometimes we bean counters don't realise how influential we can truly be, I like to ask my team : "what do you want to be famous for?".

I have experienced successful change as described in this article by creating a change team with a multi-skill base and empowering them to challenge the status quo, whilst being mindful of the impact on quality.
Lisa Parker

Lisa Parker Jan 2019

Highlights the requirement for well planned change management and the correct approach to use.

Engaging all staff that need to implement a successful change is key and also setting realistic cost reduction targets by getting all the information from the staff tasked with the change ensures that this is achieved.

Having worked with external consultants, it is evident that you pay a premium and the loyalty and motivation would also be questioned.

Very good article
Thushara Madurasinghe

Thushara Madurasinghe Apr 2018

Good article to review - gives insight to team building and leadership
Katrina Irvine

Katrina Irvine Oct 2016

Ensuring engagement from those involved in a process or product that is the focus of change for cost reduction purposes is essential to the success.

Involving those that know the process on a day to day basis and also have a fundamental understanding of what is valued by the customer within the process ensures the true value of the process is at the heart of the new design or way of doing things.  Use of Lean Six Sigma tools are an effective way of removing the emotion when redesigning a process and give a good framework to work consistently and provides repetition.  Also, understanding you can't do everything, you have to pick and sequence changes appropriately to provide a logic to the change and also avoid overlapping priorities during the delivery of efficiencies.

Effective communication of the change, the reason why, the benefits and also the impacts of the change.  The fear of the unknown is the enemy of change or making it happen, being open and truthful will encourage respect in the workplace.  Understanding the why a change is needed is essential and also describing the consequences of "doing nothing" is not in the best interest of everyone involved from the workers to the customers of the process.

Involving those involved in the process during implementation of change is essential, employee feel as though they own the new process and it will create a willingness to succeed.   The only issue to create enough resources to avoid "on top of your day job" mentality, as this has the opposite impact and will feel as though the change is being imposed by management.

After implementation, always check the change has delivered on expected outcomes.  Make this process as open as the implementation and listen with an open mind to those working the new process - address issues being raised to make the change sustainable.

Finally, celebrate success - it is great to be involved in change and acknowledging a successful implementation it brings teams together and also draws a line under this change - ready to move onto the next.

 
Kevin Flynn

Kevin Flynn Jan 2016

Interesting article that mirrors what we achieved in the MOD during my time as a group accountant looking for significant savings.