Business Transformation of Telstra Corporation Limited

Running head: Programs and Portfolios Management
PROGRAMS AND PORTFOLIOS MANAGEMENT
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Programs and Portfolios Management 2
Table of Contents
1. INTRODUCTION.............................................................................................................................2
2. Overview of Organization.................................................................................................................2
3. Business Transformation of Telstra Corporation Limited.............................................................3
3.1 Organizational simplification.............................................................................................................3
3.2 Organizational restructure.................................................................................................................4
3.3 Standalone infrastructure business...................................................................................................4
3.4 Cost reduction portfolio management..............................................................................................5
4. Selection of the transformation.........................................................................................................5
5. Implementation of the transformation.............................................................................................7
6. Advantages of Telstra business transformation..............................................................................9
7. Disadvantages of transformations....................................................................................................9
8. Comparison of major business transformations...........................................................................10
9. CONCLUSION................................................................................................................................11
10. References....................................................................................................................................12

Programs and Portfolios Management 3
1. INTRODUCTION
Business transformation is one of the inevitable aspects of business management in the
current market. Many different companies have currently undergone transformation to adopt
modern technologies. This has resulted in re-organization and restructuring of the company’s
management to accommodates these changes. The two main criteria that have influenced the
business transformation are digital transformation and program or portfolio management system.
Organizations have reorganized its business units into programs or portfolios that are majorly
accompanied by the technological application of the digital system to enhance these
transformations. One example of companies within Australia that has undergone business
transformation is Telstra Corporation Limited. The company in the past few months has
announced major changes to its structure and organizational hierarchy. There are many different
transformation selection criteria that assisted in selecting business transformation model. In
addition, the implementation of these business transformations is also peculiar to the specific
organization following the development of a strategic plan for transformation. The following
paper explores business transformation case of Telstra.
2. Overview of the Organization
Telstra Corporation Limited remains one of the major company within Australia and
regionally being Australian largest telecommunication company. The company provides mobile
network, internet access services, market voices, pay television and other mobile services and
products. The company was founded in 1975 and has undergone a major transformation to serve
the international market. At the time of inception, the company has few products and service
which it has since then diversified to provide more products and services. The organization is

Programs and Portfolios Management 4
currently offering fixed lines and mobile telephony, network service, internet services, data
services and pay TV services. In order to adapt to current changes in the business environment,
the organization has transformed its product and service lines. The organization has in the recent
past undergone a major transformation that aims at changing the organizational structure,
management, and programs or portfolios (Quinlan 2011). The company restructures its
organizational units to introduce new forms of organizational units and systems. These units are
meant to reduce complexity to enable the company to realize its core mandates and functions.
Management has also been affected as the company introduces a new management system and
reducing some other management aspects. Telstra has since then re-organized the human
resources to hire some new employees while also firing other employees. An example of hired
employees is management staffs that will manage the newly created units. At the same time, the
organization has also reduced the number of its employees by more than 1400 staffs (Crozier
2018).
3. Business Transformation of Telstra Corporation Limited
Telstra has undergone many different transformations that enable the organization to
restructure its programs and portfolios. These business transformations are grouped into pillars
that assist in the implementation of these structures.
3.1 Organizational simplification
Digital simplification of products to reduce the organizational complexity that increases
management cost. The organization announced that it replacing its initial business program with
20 core portfolios that aim to utilize the digital system to increase transparency, accountability