It is good to see that Telstra has laid out its strategy for the short to medium term. Key themes of the strategy include:

  1. Radically simplifying its product offerings, eliminating customer pain points and creating an all-digital experience.
  2. Establish a standalone infrastructure business unit.
  3. Greatly simplify structures and ways of working.
  4. Implement an industry leading cost reduction program and portfolio management.

Being a Telstra customer I would like to see the transformation happen, it is long overdue.

There is no doubt each of the strategic initiatives has the potential to optimise and maybe even transform the business if they are implemented well.

As I see it, there are seven key elements that an organisation needs to align to achieve effective optimisation and transformation, Strategy, Structures, Technology, Process, People, Information and Governance. Telstra T2022 touches six of the seven. The one that is not clearly defined in what I have read about T2022 is Governance. 

The introduction of a new centralised Global Business Services unit that will bring together shared services and high volume repeatable activities and operational processes makes me wonder if any lessons have been learned at all. Especially if the documented new ways of working include embedding agile (which it does), it will be interesting to see how this works. A new stand-alone infrastructure business will be created. This new entity will provide access to infrastructure assets to Telstra through an agreed commercial arrangement.

So I go back to the importance of defining and aligning the Governance framework along with the other six elements. Without it, I question whether the future state Telstra will realise its potential and drive the desired behaviours, performance and change management it wants and needs.

The best of luck to CEO Andy Penn, I am sure there is no pressure as all of Australia watches the transition unfold.

Further reading:
Telstra to axe 10,000 contractors
Telstra takes axe to indirect, 10,000 jobs to go

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About the Author Jackie O’dowd: Jackie delivers improved business performance; creator of the realising success Framework, and author of Connecting The Dots – The Blueprint For Strategically Aligned Business Performance. Jackie helps organisations to solve problems and improve organisational capability and performance. With extensive experience across multiple industry sectors such as Petroleum, Manufacturing, Health, Civil & Mining Services, Employment Services, ICT, Oil & Gas, Government and Professional Services, the results speak for themselves. Jackie works with organisations that want to realise their potential and get real sustainable results. Connect with her on LinkedIn.