BT's Innovation and Change: Leadership and Cultural Report

This report provides a comprehensive analysis of British Telecom (BT), examining its innovation processes, leadership styles, and cultural dimensions. The report begins with an introduction to BT, highlighting its global presence and key services. It then delves into the company's innovation processes, detailing a five-step workflow from idea generation to acceleration and building. The report further explores various leadership theories adopted by BT, including behavioral and contingency theories, and discusses the application of Hofstede's cultural dimensions within the organization. The report concludes by discussing the proper application of an appropriate analytical approach and recommending how BT should lead and manage innovation and change in 2020 and beyond, offering valuable insights into the company's strategies and future direction. The analysis provides a detailed overview of BT's operations and its approach to innovation, leadership and culture, offering insights into the company's strategies for success.

Leading Innovation
and Cultural
Change

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Details information about selected organization and evaluate the current process for
innovation and change exist in an organization.....................................................................1
Illustrate the allocated theoretical concepts on leadership and culture..................................4
Discuss proper application of appropriate analytical approach and recommendate how the
subject company should lead and manage innovation and change in 2020 and beyond........8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation and change is the core element in every business. In order to be in the leading
position innovation and change is must. Organisation conduct research and development
activities continuously to come up with creative idea in the open market place (Bligh and Yan,
2018). This report is based on BT. This is a international telecommunication company located in
London. This successfully business is operating in 180 countries globally. On the other it is the
largest provider of mobile service, fixed line and broadband services in United Kingdom. The
Chairman of this firm is Jan du Plessis and CEO is Philip Jansen. Many subsidiaries are provided
by the organization like, Openreach, BT Global Services, EE limited. Plusnet and many more.
This assignment covers brief explanation about BT and how innovation and change is taking
place in the company. Various theoretical concepts of leadership and culture are showcased
properly. Additionally, pestel analysis is examined in order to manage innovation and change in
2020.
MAIN BODY
Details information about selected organization and evaluate the current process for innovation
and change exist in an organization.
Background of BT
BT is a telecommunication company in United Kingdom that provides networking
services, global security and cloud services to numerous multinational companies across the
globe. This successful business came into existence in the year 2000 as BT Ignite. It's
headquarter is in BT centre London, EC1 UK. The CEO of this leading telecommunication
company is Bas Burger. Organization is serving distinguish goods and services such as to cloud
computing, contract centres, Unified communication, Network security, IT and network services
and so on. In around 180 countries business is operating it's business of telecommunication
successfully.
In the global market there are BT is running as single business and are working hard to
meet the emerging needs of the customers. In BT there are two types of organisational unit,
customer facing ones which sell goods and services and corporate ones which supports the
complete group. In the era of competitive world BT is in the leading position among it's
competitors and are abler to capture huge market ratio because they focus on creating value for
1

stakeholders (Dhir, 2019). Along with this company is selling those goods and services in the
global market which tend to be essential part of the modern and hectic life.
BT in UK is one of the world's leading communication services firm. Who continuously
make improvement in their product and services to make it more better as compare to earlier.
Management is working day and night to develop and sell communication goods and services for
their potential customers. On the other hand they are training their staff members to build and
operate network which are core and the important part of businesses, modern life and
communities. In the cut throat competitive world BT is basic earning per share is 21.8p+6%.
While, 26.3p (6)%. The revenue accumulated from their product and services is £ 23.4bn (1)%.
Innovation is defined as coming up with something new in the market or making
changes in the current goods and services (Woodin, 2018). BT is conducting research and
development work continuously so as to build tough competition for others in the market.
Through innovation telecommunication firm is bale to compete with it's competitors prevailing
in the open market place. In order to gain productive and best results in the international market
Organization is framing innovation team outside of BT's day to day operations. On the other
hand in order to advance these innovations management unit team members under BT umbrella
and developed five step work follow process. The five step through which BT idea, thinking,
imagination and taught can be turned into reality are explained as under:
1) Generate idea or thinking: This is the very first stage for any innovation group in
order to discover creative idea and change in the market. Idea can be generated at any
point of time at any place. In order to compete with the tough competitors prevailing in
the global market BT's Global Scouting Network with academics, VCs, rivalry,
consumers and start-ups. BT's employees seek modern technologies and services so as to
identify current trends and threats floating in the international market (Doppelt, 2017). By
this best and unique innovative idea and changes can be discovered by scanning the
market. Example: BT new idea is to attract customers to enjoy Amazon Prime Video for
six months.
2) Categorise the opportunities on the basis of priority level: In this case, BT's small
team working in London scan the best idea from the pool of creative thought. Here,
screening of idea and necessary changes is done so that best idea can be shortlisted and
productive outcomes can be attained easily. Management need to categorise the
2

opportunities on the basis of priority level so that more time can be invested only on
innovation which show the most potential. By prioritising the opportunities prevailing in
the market in the right time BT can serve best goods and services to the end users over
the years. The team sitting in London not only filter the idea and changes but also
validate business propositions and cases for BT heads and potential partners. Example:
BT provide the service of BT Sport monthly pass because customers life is too hectic so
they do not have enough time to recharge it. With no contract and commitments sports
can be enjoyed on mobile, tablet etc (Fielding, 2018).
3) Visualise the new goods or services: In order to gain huge success in the global market
it is essential to visualise the new goods and services appropriately. At BT applied
technology centre the innovative product and services are tested with the customers so as
to gain real world reaction after consuming it. This act helps organization to make
improvements in the product if it lack behind in some area. Feedbacks helps BT to refine
the proposition as well as assist all parties to learn about execution of innovation and
change in the premises. Examples: BT provide package of TV show that covers live
sports, an array of kids, exclusive US premieres and so on. If customers buy the TV
package they are benefited with Amazon Priori Video for six month free of cost.
4) Inspire and sell: Business can survive in the global market if the innovative and changed
goods and services are sold in large quantity. BT hold regular customer innovation so that
their team are mould to become more creative in the way they organize modern
technology. With the help of videos, demonstrations, presentation and so on explores
how it can be best used with the technology and end user's key objectives can be attained.
Additionally, customers can be inspired to purchase the goods and services through this
sales volume can be uplifted automatically (Hjelmar, 2019). in Example: To raise the
sales ratio of BT 's TV package they are offering Amazon Prime Video free for six
months.
5) Accelerate and build: In order to compete with rivalry various tactics are framed by
firm in the open market place. BT conduct three day workshop with the purpose to
formulate prototype and quickly accelerating development. Management of the firm
assemble all firm's leaders, software engineers team and product under one roof so as to
design an atmosphere conducive to review and facilitates quick decision making process.
3

In this stage group members demonstrates idea which collaborate with each other in order
to attain best outcomes. Example: BT's Halo goods aid Britain to stay connected with the
best network as well as render unlimited voice and data facilities at home and access to
5G.
Illustrate the allocated theoretical concepts on leadership and culture.
Business can operate successfully in the global market by adopting best theoretical
concept of leadership and culture at the work place. It is very essential to choose the most
appropriate concept so that productive results can be attained easily in short time duration.
Leaders plays a vital role in the growth and development of the BT business across the globe.
There are various leadership theories which can be implemented by organization are, Trait
theories, Situational theories, Great Man theory, Participative theory, Management Theory,
Relationship Theory, Contingency theory and so on. The theoretical concepts adopted by BT in
the working premises are discussed beneath:
Behavioural theory is explained as focusing more on the actions of leaders instead of
their traits and behaviours. According to this theory leaders can be created by teaching and
observations Behaviour of research can be done on two aspects which are, on the classification
of leadership behaviours into taxonomies and on the identification of behaviours associates to
criteria of leadership effectiveness (Jones and Alsafi, 2019). BT by adopting this leadership style
will be able to motivate staff members to perform their task better as compare to other rivalry.
By this set goals and objectives can be attained in the set time duration over the years. This
particular theory guide BT to design strategies so that attributes of their skilled and capable staff
members can be increased.
4

Illustration 1: Leadership Theories
Source: Leadership Theories, 2020
Contingency theory is illustrated there is no specified formate to lead a firm, to make
best decision and to organize a corporation. The ultimate course of action totally depends on
internal and external conditions. The judgements are taken based on the current conditions
prevailing in the open market place. BT need to train their superiors and management to modify
their policies if the circumstances demands for it. By this organization can easily and smoothly
revert back on the condition in better way. Additionally, with the help of contingency theory BT
is able to mange all their services in systematic manner as well as are able to raise best decision
making skills. Through this competitive advantages is gained because it provide them option to
grow and communicate their idea to the firm. Through this effective organizational structure is
build.
Great Man Theory refers to as leaders are born not made. They are born with right
abilities, skills and traits for leading. This ability is present in the leaders from birth it can not be
created by teaching them according to the theory (Kostis and Petrakis, 2018). On the other hand
5

it is also assumed that leadership is a heroic act. BT by adopting this theory will be able to boost
their employees will power to work hard. This is because through this model management is able
to encourage those individual are heroic encourages by birth, superior intellect, divine
inspirations, natural attributes etc. in order to come with creative outcomes.
BT is adopting behavioural theory in their leadership. By this they are able to better
understand the staff members changing behaviour towards their job profile. Through this
necessary improvements can be done so that capable co-workers can be retained for longer time
duration. By proper implementation of this theory set goals and objectives of the organization
can be achieved easily.
Hofstede's cultural dimensions in BT
This theory was given by Dr. Greet Hofstede at the end of 1970 which helps in
understanding cultural differences that exist in the organisations so that they can be well
understood so that all the workers can work in the same organisation (Kumar, 2019). The theory
has six dimensions based on which the cultural differences can be studied in BT :6) Power distance index: It helps in determining the extent to which difference in power
and distribution of power is accepted by the people of an organisation. High PDI means
that the organisation is centralised and the distribution of power is highly managed.
Lower PDI on the other hand means that all the members of the company are treated
equally which means that employees are also included in decision-making. There exists
low PDI in BT which helps in delegation of tasks among employees based on their skills
and talents which increase their efficiency to work and utilize their potential to the fullest
which helps in bringing innovation in the company.7) Individualism Vs Collectivism: This refers to the extent to which all the members of the
company are attached to each other. High individualism indicate that weak relations and
connection exist among all the employees of the company and they work in their
individual capacities. Collectivism on the other hand means that high harmony exists
among the members which help in building good relations with other members. In BT the
IDV level is kept moderate which means a balance is maintained in the privacy of
individuals along with promotion of group activities (Luria, 2018).8) Masculinity Vs femininity: It determines the distribution of roles among men and women
in the company. High masculinity means that money and achievement is the main focus
6

of the company which means that men are given most of the responsibilities in the
company. However high femininity means that quality of life is the main focus of the
company and good relations are build among the members of the company. BT has a mix
structure which helps in distribution of tasks among men and women of the company so
that along with achievement of goals, quality of life can also be maintained.9) Uncertainty avoidance index: It determines the way in which uncertainty is dealt with in
the company. High UAI means that strict measures are taken in the company so that any
unknown risks can be avoided whereas low UAI means that the company take up risks
and tackle the uncertain conditions in an efficient manner. BT has a low UAI index which
helps it in taking the risks head-on and also coming up with innovations.10) Long vs short-term orientation: It determines the goals which a company formulate to
survive in the market. BT has a long-term orientation which helps it in formulating such
strategies which helps it in surviving and sustaining over a longer period of time.
11) Indulgence vs resistant: This describes the inclination of employees towards fulfilling
their own personal needs and wants. BT pays its employees based on their skills and
talent and also give them various rewards so that they can be satisfied with their jobs
hence increasing their job satisfaction (Lykourentzou and Antoniou, 2019).
Discuss proper application of appropriate analytical approach and recommendate how the
subject company should lead and manage innovation and change in 2020 and beyond.
Pestle is conducted by BT in order to better understand the external environment
conditions prevailing in the open market place. By properly studying this analytical approach
organisation is able to make necessary improvement in the product and services so that
productive results can be attained in the external market. By studying the external factor
telecommunication company is able to expand their business globally smoothly without any kind
of difficulty. The political, economical, social, technological, environmental and legal factors
which assist BT to lead and manage innovation and change in 2020 and beyond are illustrated as
under:
Political factor: UK has more political stability then any other nation. Operating
business in this country will be beneficial because company will be able to expand their business
smoothly. Tariffs, trade restrictions, environmental law, political stability, tax policy, labour law
and many more are examples of political factor. Political factor assist BT to lead and manage
7

innovation and change in 2020 and beyond because by evaluating this factor firm tries to
prepare goods from those resources which are available in the host country. This is because any
time tax policy and trade restrictions can be implemented by the particular nation which can
hamper their business (Mergel, 2018).
Economical factor: Interest rates, tax rates, policies, governmental activity, wages and
so on are some of the factors of economic. In order to expand the business organization need to
examine all this factors on priority level so that best results can be attained easily. BT keep eye
on the economical factor of the nation because firm need to innovate their goods and services
accordingly. Fluctuation in economical factor impact the cost and awareness of customers
demand. In order to meet the emerging needs of the customers BT conduct research and
development in order to come up with more innovative and change in the existing product and
services over the years. In the global market BT lead and manage innovation and change in
2020 and beyond because when taxation, public infrastructure, data on policy and society differs
from one pother by location they act as proxy for theses forces. For this strong strategies are
formulated so that set goals and objectives can be attained easily.
8

Illustration 2: Pestle analysis
Source: Pestle analysis, 2020
Social factor: To raise goodwill in the eyes of the customers it is essential to follow
social factor on priority level. Traditions, customs, beliefs, norms, religion, cultural taboos and
many more are covered in social factors (Nicholls, 2018). Organization need to understand the
social status as well as the increasing inflation rate in the global market. By this BT will be able
to lead and manage innovation and change in 2020 and beyond because management will be
discovering those goods and services which will be best suitable to the societal needs. This
small act aid organization to raise market value of the brand in the intense competitive world.
Technological factor: It is another factor of Pestle analysis. Organization by adopting
modern tools and techniques will be able to meet the emerging needs of the customers over the
years. Through technology BT is able to lead and manage innovation and change in 2020 and
beyond because through this innovative goods can be prepared in less time. BT's Halo goods aid
Britain to stay connected with the best network as well as render unlimited voice and data
facilities at home and access to 5G. It is possible because of adoption of technology.
9

Environmental factor: Pollution, climate change etc. are covered under environmental
factor. Raising global warming is a major concern and organization need to take step for
environment improvements. BT is using advanced machinery so as to raise their service network
across the globe. Firm is trying to come up innovation and change in the existing goods and
services in order to make them more secure wireless network which has full speed in adverse
condition (Peruzzi and Lombardi, 2018).
Legal factor: Organization can grow and flourish in the global market when legal factors
are full-filled properly. Some of the laws included in legal factors are, copyright law, consumer
law, discrimination law, fraud law and so on. BT adopts legal laws in their business in order to
assure that services are provided legally by government support. By this BT will be able to lead
and manage innovation and change in 2020 and beyond because in order to survive and sustain
in the global market it is essential to follow legal factor. Legal norms motivates to
telecommunication company to identify new ways to be in the competitive world (Powles,
2018).
CONCLUSION
From the above discussion it can be ended that innovation and change is the core element
which need to performed by every organization in order to compete with the rivalry present in
the global market. Through innovation and change in the goods and services firm is able to bind
customers towards their product for longer time duration. Business is able to maximize huge
profits because of innovation and change in their existing goods and services. Various theoretical
concepts such as, Behavioural theory, Great Man Theory, Contingency Theory, Hofstede culture
theory and son on related to leadership and culture are studied in order to make improvements in
the working premises. Behavioural theory and Hofstede culture theory is briefly examined in
order to gain competitive advantages against rivalry in cut throat competitive world. Depending
upon the organization structure theoretical concepts need to implemented in the working so that
tough challenges can be designed for the competitors which is a positive mark for the business.
Pestle analysis is conducted by the firm in order to understand external environment factor.
Through this analytical approach business is able to frame long term growth strategy over the
years.
10

REFERENCES
Books and journals
Bligh, M. C., Kohles, J. C. and Yan, Q., 2018. Leading and learning to change: the role of
leadership style and mindset in error learning and organizational change. Journal of
Change Management. 18(2). pp.116-141.
Dhir, S., 2019. The changing nature of work, leadership, and organizational culture in future
ready organizations. Corporate culture, Management, Leadership, Job redesign,
Organizational Behavior, Innovation, Change Management, Human Resources, VUCA.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Fielding, S., 2018. The Labour Governments 1964–70 volume 1: Labour and cultural change.
Hjelmar, U., 2019. The institutionalization of public sector innovation. Public Management
Review, pp.1-17.
Jones, S., Geydan, T. and Alsafi, M., 2019. Cultural Challenges in Leading an Innovation-
Oriented Business: Comparing Entrepreneurs from East and West. Effective Executive.
22(2). pp.7-13.
Kostis, P. C., Kafka, K. I. and Petrakis, P. E., 2018. Cultural change and innovation
performance. Journal of Business Research. 88. pp.306-313.
Kumar, K. B. S., 2019. Leading the Culture of Innovation. Effective Executive. 22(2). pp.5-6.
Luria, K. P., 2018. Territories of grace: cultural change in the seventeenth-century Diocese of
Grenoble (Vol. 11). Studies on the History of Society and Culture.
Lykourentzou, I. and Antoniou, A., 2019. Digital Innovation for Cultural Heritage: Lessons from
the European Year of Cultural Heritage. SCIRES-IT-SCIentific RESearch and
Information Technology. 9(1). pp.91-98.
Mergel, I., 2018. Open innovation in the public sector: drivers and barriers for the adoption of
Challenge. gov. Public Management Review. 20(5). pp.726-745.
Nicholls, A., 2018. Managing educational innovations. Routledge.
Peruzzi, G. and Lombardi, R., 2018. Education, Cultural Change, Territory: The Third
Sector’Innovation. An Italian Case Study. Study Sociology, pp.313-24.
Powles, J., 2018. Leading academic innovation through technology. Education Technology
Solutions, (82), p.64.
Ucar, E., 2018. Local creative culture and corporate innovation. Journal of Business Research.
91. pp.60-70.
Woodin, T., 2018. Co-operative Approaches to Leading and Learning: Ideas for Democratic
Innovation from the UK and Beyond. Exploring Consensual Leadership in Higher
Education: Co-operation, Collaboration and Partnership, p.71.
Online:
About BT . 2019 . [Online] Available Through:<https://www.lexology.com/library/detail.aspx?
g=18a78c6e-4ee9-444c-8889-a039583c54a7 /> .
Leadership Theories . 2020 . [Online] Available
Through:<https://corporatefinanceinstitute.com/resources/careers/soft-skills/leadership-
theories//> .

Pestle analysis . 2020 . [Online] Available
Through:<https://www.ozassignments.com/solution/pestle-analysis-singapore-proof-
reading-services/> .
2