Telstra Organizational Change: Customer Experience, Cost Reduction, and Simplified Structure

Running head: MANAGEMENT 1
Management of Change
Student Name
Institution

MANAGEMENT 2
Option 1
Change the project scenario
Telstra organizational change
Telstra a leading telecommunication company has undergone changes that involve
restructuring the company's business units and customer service to improve profitability. Telstra
announced changes that were based on three aspects and these include customer experience,
simplify the structure and cutting cost. These changes were planned and announced by the
organization management. These changes were to increase business capital from $1 billion to
$2.5 billion. Consequently, the number of employees was to reduce by 8000 hence the increase
monetization of assets worth $2 billion (Telstra 2018).
Customer experience
The company changed the customer service operations to improve on the customer
experience for various products that the company deals in. the company rolled out a plan to
diversify its products and reduce customer pain experience through the creation of digital
customer experience. Application of digital customer service is one way of ensuring that
customers have an experience. This is also coupled with digital customer service that ensures
customers are assisted within the nearest possible platform (Bennett & Bush, 2013).
Leading cost reduction

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The company further announced a cost reduction through customer-friendly products and
plans. This was to ensure that the company remains a market leader in the telecommunication
industry of Australia. The company had researched various ways to reduce costs while at the
same time remain profitable in the competitive business environment (Skelsey, 2013).
Simplify structure
The company also conducted a business restructuring change that ensures that the
company remains competitive using a simple structure. The company restructured to develop a
standalone structure to simplify its operations. The company wanted to reduce the complexity
that resulted from the organization structure. The restructuring process was estimated to cost
$600 million to ensure that the company remains relevant in the competitive telecommunication
market (Little, 2014).
Topic 5 – It is important to engage with stakeholders in change work.
Planning and effecting change within Telstra was based on many different stakeholders.
Various stakeholders are involved in change management since the change was centered on
improving the customer experience. The company wanted to reduce the cost thus influence the
customer experience. Various stakeholders were part of the change processes (Alves, Wagner-
Mainardes & Raposo, 2012).
Some of the stakeholders that were involved
Firstly, customers were key stakeholders that are involved in the change since customer
experience was part of the management changes. The company through its management engaged
customers as stakeholders to understanding the future competitive strategy that involves reducing

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the cost and improving the experience of customers after service provision. Secondly,
management is another stakeholder that was affected by the changes that were implemented
within the organization. Restructuring of the company business units means many staff would
either loss position or their role is redefined again. This made the company engage various staff
members in the business change to prevent any possible resistance from within the management
(Bacon, 2016).
Thirdly, the investors are another set of stakeholders that has high influence and interest
in the change that affects the company. Investors that own shares of the company were part of
the stakeholders engaged by Telstra as they are highly interested in the profitability of the
business. The key role of investors is the get the value of their investment after implanting these
changes in the organization (Online PM Courses, 2016).
Fourthly, the business community has some stakeholders that include partners and
competitors. Partners to the Telstra play a role in contributing to the overall performance of the
business through a number of ways. Business partners form part of changes they act as partners
and customers at the same time. Moreover, the company engaged partners since the restructuring
was concerned with ensuring all stakeholders get a better experience of the services (Ensher,
2018).
A consequence of the outcome of changes
Telstra implemented Telstra2022 change that has consequences on various stakeholders
of the company. Firstly, customers being the center of the changes experience improved services
and experience. The cost of the product was significantly reduced to ensure that customers do not
experience pain while accessing services. Secondly, business partners have to cope-up with