Disintermediation, consolidation, global expansion, and the need for cross-industry alliances mean that many telecom companies need to strengthen their leadership and internal capabilities and evolve their highly complex, sometimes rigid structures to better meet the current challenges and needs of the marketplace. Our telecom organization team helps telecom companies of all sizes and at different points in their development wrestle with these ongoing issues. We also provide support to discrete efforts such as post-merger management and new organizational design implementation.
What we do
Telecom executives realize their companies need specific processes and capabilities to contend with the changes buffeting the telecom industry as well as execute their corporate strategies well. We work with telecom companies to implement the right organization models, close key capability gaps through targeted development or acquisition, refine talent-management processes, and align culture and behaviors to reflect market and customer needs.
Our recent work has centered on two areas. First, we help global and regional incumbent telcos suffering from falling market share undertake transformational change at the corporate and operating company levels. In addition, we support several merger integration efforts, including providing guidance on cultural fit and capabilities preclose and assisting with the creation of cross-border governance structures that effectively balance global and local stewardship postclose.
Examples of our work
- After a major cross-border acquisition, we supported a large mobile operator in establishing an effective Group HQ (greenfield) and building up the organization in terms of structure and governance to continuously capture cross-border synergies
- For a global mobile-device manufacturer, we designed a completely new organizational structure to face a rapidly changing market environment, focusing on creating a lean and adaptable organization with small subunits within key delivery areas
- We supported the CEO of a large telecom incumbent operator in Asia Pacific in redesign its operating model for the marketing organization, focusing on organization structure, processes, metrics, as well as capabilities and mindsets
- For a leading European telecom incumbent, we shaped an effective talent program with a 3-year master plan and put the talent topic on the board agenda
- Designed and implemented a culture- and performance-transformation program for a fixed line player in Southeast Asia
Who we are
The organization leaders in the telecom practice bring broad strategy and organization skills, as well as specific expertise in areas such as Group/Operating Company organization design, talent management and leadership development, innovation, and merger management and cultural change. Our global team has extensive experience working in mature and emerging markets, with recent engagements in Europe, the Middle East, East Asia, Africa and North America. We frequently collaborate with McKinsey practice leaders in our Strategy, Media, and High Tech Practices to serve diversified communications companies.
Proprietary tools and insights
The Organization team in McKinsey’s Telecom Practice continues to invest in original thought leadership and tools that help our clients implement and maintain organizational improvements. Recent and in-progress efforts include:
- Organizational Health Index, a comprehensive, survey-based assessment tool used by more than 600 companies to evaluate organizational effectiveness and management practices, diagnose organizational culture, and identify paths to performance improvement. Results can be benchmarked against industry leaders and regional trends
- HR Diagnostic, a tool that can help HR executives speed functional transformation, execute HR strategic plans, and improve talent management
- Cross-border Merger Management Boot Camp, forums in which Organization Practice leaders share best practices with telecom companies growing through international acquisitions
- Telco Organization of the Future, draws upon our client work to convey our perspective on the processes and capabilities needed for continued success
For more information, please visit the Organization Practice.