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Bell Atlantic Corporation (GBS)
Area of concern:
Integration of cultures; breakthrough in performance
Upon finalization of the Bell Atlantic/Nynex merger in 1999,
the president of the newly integrated marketing unit (GBS)
launched a reinvention initiative designed "to engage the passion, spirit and intelligence of the entire GBS constituency in pursuit of extraordinary organizational accomplishment." GBS had approximately 7,500 employees in the Northeastern United States.
A group of 125 leaders from all areas and all levels of GBS created an audacious "strategic intent" that, along with their core values, served as the GBS context: In three years GBS will be the best in the industry in employee relations, customer service and financial performance.
The initiative itself spanned a sixteen-month period from January 1998 through April 1999 following a modified version of the Starr Consulting Group design for large-scale transformation. An analysis of results showed the following:
Qualitative Assessment from In-Depth Employee Interviews
- Bell Atlantic and Nynex merged rapidly and effortlessly in the GBS division.
- Teamwork and collaboration replaced command and control.
- Innovation and leadership emerged at all levels of the organization.
- Employee enthusiasm and satisfaction rose to an all-time high.
Employee Satisfaction
An unprecedented 70% of employees completed the survey. When compared with other Fortune 100 firms, GBS scored in the top performance category (called "World-class") in five key measures:
- I am satisfied working at GBS.
- Employees are treated with respect.
- We have an environment of openness and trust.
- This is a good place to work.
- I have an opportunity to improve my skills.
Customer Satisfaction
- Based on the industry's Customer Care Indicator (CCI), Accounts Receivable reversed a downward trend and achieved top "best in class" industry ranking in less than one year.
- Throughout the organization, CCI's above 90 were being recorded as a regular occurrence - a performance level considered by many to be impossible at the beginning of the reinvention process.
Financial Performance
- Revenue per Call increased by more than 50%.
- Revenue per Employee increased by over 90%.
- Collections per representative increased 82% in Business Receivables, and 20% in Consumer Receivables.
- Simultaneously, the number of employees decreased as did overtime.
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"I think we woke a sleeping giant!"
- Mark Kutner, President GBS
"Before reinvention, people were well attended and doing their jobs. But they were kind of going through the motions. We really unleashed their intelligence and creativity by giving them the space to be creative, to work together to solve problems, to create local breakthroughs. Today, there's tremendous singular focus on our Strategic Intent 'to be the best in the industry'. Lots of people take on things in their local offices or functional areas that would have never been done before, with an energy and a passion to really make a difference, to really change things, and to produce breakthroughs."
- Mark Kutner, President GBS
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