Rightsizing at PTCL - Final Version
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Transcript of Rightsizing at PTCL - Final Version
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Rightsizing atPTCL AfterPrivatization
Group Members:
Faisal Ahmad Jafri
said !iddi"ui
vaisuddin Adil
!hozab Abid Azhar
!umma#a $ahra Rizvi
!#ed M Asad $aidi
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Agenda
%a&'ground(
Privatization)
*tisalat+s !teps,
-!! )../ and ).()0
Challenges and Learning for-!! ).(0
1
Results2
3a# For4ard5
Re&ommendations and 6 7 A
/
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About PTCL Leading tele&ommuni&ation servi&e &ompan#
in Pa'istan
Largest 89edline net4or' and hugeinternational net4or' spread throughsubmarine &able s#stem;
Manages and operates )... telephonee9&hanges a&ross the &ountr#
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>mportan&e of PTCLne of the largest and one of the ver#
fe4 pro8table stateo4ned enterprise in
Pa'istan *mplo#ed 5)?... people a&ross
Pa'istan
Previousl# &ame under Civil !ervants
A&t? (@5, Listed in ara&hi? Lahore and >slamabad
!to&' *9&hanges
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=ilemma 4ith PTCL
Government had fe4 maBor issues at handfor PTCL: o strategi& dire&tion
La&' of monetar# resour&es forte&hnologi&al advan&ement
*9&ess emplo#abilit#Dver staEng
Poor eE&ien and poor s4eating ofassets
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Govt+s approa&h to resolution ofissues: Privatization
>n )..,? Government of Pa'istanprepared a highl# intensive privatization
program PTCL 4as privatized in )..2 )2 shares sold to *tisilat >nternational
HA*I 4ith management rights
() shares o
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*tisilat+s Challenge The ne4 management had t4o tas's at hand: Rationalize *mplo#ment !hort TermI
Ma9imize Pro8tabilit# Long TermI
Pro8t Ma9imization 4as onl# possible through:
Te&hnologi&al advan&ement and infrastru&ture improvement
Redu&tion in operational &osts Multiple sta'eholders 7 pressure groups due to federal s&ope
Rights of &urrent emplo#ees ensured through privatization dealfor&ed la# o< not allo4ed
%usiness &ontinuit# 4as e9tremel# important
Multiple &ategories of emplo#ments
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*tisilat+s ResponseThe d#nami&s of tele&om industr# 4ere &hanging
rapidl# PTCL had to a&t "ui&'l#
The management de&ided to pro&eed 4ithrightsizing through -oluntar# !eparation !&heme-!!I Program
%usiness Case Rationale for Rightsizing:PTCL&arried out a &omprehensive resear&h through
M&inse# 7 Compan# 4hi&h did a thoroughben&hmar'ing and established to have ama9imum emplo#ment for (1?... people againstthe prevailing 5)?...
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-!! -oluntar# !eparation!&hemeI *mplo#ees 4ere given the option to freely and independently
&onsider and &hoose the separation s&heme Appli&able on regular and CPG emplo#ees
=ivided into follo4ing &ategories:Transition Compensation
%ene8ts Compensation
ptee Program
!upplementar# %ene8ts
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Pa&'age Components
Optee SupportProgram
TransitionCompensation
BenetsCompensation
SupplementaryBenets
Transition Pay Early Bird
Bonus Program Bonus
Commutation/
Gratuity Health Fund Leae En!ashment "llo#an!e Benets
$o% Sear!h &Outpla!ement Seri!es
Finan!ial "ssistan!e 'o!ational Trainings
(rite o) Loans
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Challenges fa&ed in -!!>mplementation
Kuge organizational stru&ture
ation4ide presen&e
rganizational politi&s
Comple9 emplo#ment &ategories
Pressure groups
*motional atta&hment to organization
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-!! in )..5 The !u&&essThe )..5 -!! 4as a huge su&&ess
,)?... emplo#ees opted to ta'e voluntar# separation
PTCL engaged several e
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-!! in ).() The 8as&o *n&ouraged b# the results of )..5? PTCL laun&hed -!! again in
).()
This -!! 4as laun&hed targeting the senior govt emplo#ees
Anti&ipating the &ompan#+s move? the senior emplo#ees legall#
&harged the &ompan#
PTCL? 4anting to avoid an# litigation? 4ithdre4 the program
nl# 1?2.. emplo#ees too' the o
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-!! in ).(0 Learning frommista'es
PTCL &arried out &omprehensive 4or'ing prior too
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-!! in ).(0 Learning frommista'es !mart ta&ti&s 4ere used to identif# and isolate the un4anted
emplo#ees:
>nternal transfers to remote and out of &omfort zone lo&ations Hne9pe&ted promotions and e9pose of nonperformers
=ela# ta&ti&s e;g;? for leaves
=emotivation tools? e;g; no in&rements
=i
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-!! ).(0 A step &loserKaving &arried out the previousl#
mentioned ta&ti&s? PTCL then laun&hed
the ).(0 -!!This program 4as met 4ith great
su&&ess
Appro9; (5?... emplo#ees opted for the
-!! %ringing PTCL &loser 4ithin tou&hing
distan&e of their (1?... emplo#eetarget
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Comparison'SS *+,* 'SS *+,3
Minimum AmountRs; /1.?...
it 4as 21.?... in -!! )../IRs; @1.?...
Transition %onus . Rs; ,1.?...
Retirement %ene8ts
!ervi&e for Pension*ligibilit#
). Nears o rela9ationI (/ Nears ) Nears rela9ationI
Addition in !ervi&e Nears . ) Nears
Regular Pension *ligibleI nl# ,1,1 to (). as per *mplo#ees
Choi&e
Regular Pension ot*ligibleI
Rs; ,..?... as !eparation%onus
4hi&h 4as ta9ableI
1. &ommutation Min : Rs;,1.?...I
3hi&h is Ta9 e9emptedI
Gratuit# CPGI ne %asi& per Near Four %asi&s per Near
Leave *n&ashmentMa9 of @2 for CPG 7 (/. for
Regular!ubBe&t to Available %alan&eI
(/. for ever#oneeven if leave balan&e is $*RI
Allo4an&e %ene8ts Given onl# on Kouse Rent Given on All Monthl# Allo4an&es
Loan Amounts =edu&ted from Final Pa#ment 3ritten o<
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Results !in&e rightsizing? PTCL has been able to revive itself in
te&hnolog# infrastru&ture
Revenues have more than doubled from )..2? no4
standing Rs; /( billionGross pro8ts subse"uentl# have risen to Rs; )1 billion?
4ith onl# -!! remuneration bringing it to lo4er than ).(,
Compan# is no4 venturing on ,G and 0G proBe&ts along4ith >PT- servi&es
Customer feedba&' and response time has improvedsigni8&antl#
PTCL is developing itself as a respe&table &orporate brand
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3a# For4ardO PTCL is no4 fe4 steps a4a# from a&hieving its goal
>t is planning on to bring another -!! to a&hieve
the target of (1?... emplo#ees Challenges a4ait? but the management is ver#
&on8dent of a&hieving the target earlier than thestipulated time
>t is not eas# to la#o< the remaining last &hun'
stubborn and insensitive attitudeThese emplo#ees are strong obsta&le in overall
&ulture &hange of the organization
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Re&ommendations A more lu&rative -!!
>ndividual &ounseling pattern of pressure
groups and underl#ing fa&tors identi8ed Po&'et Hnions
Hsage of inuential people
Group in&entive
)ndphase: -!! CPG &ombo pa&'age
in&rement and a &ategor# &hange onl#I
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Than' #ouQ 6uestions please