Rightsizing at PTCL - Final Version

7/24/2019 Rightsizing at PTCL - Final Version

1/21

Rightsizing atPTCL AfterPrivatization

Group Members:

Faisal Ahmad Jafri

said !iddi"ui

vaisuddin Adil

!hozab Abid Azhar

!umma#a $ahra Rizvi

!#ed M Asad $aidi


2/21

Agenda

%a&'ground(

Privatization)

*tisalat+s !teps,

-!! )../ and ).()0

Challenges and Learning for-!! ).(0

1

Results2

3a# For4ard5

Re&ommendations and 6 7 A

/


3/21

About PTCL Leading tele&ommuni&ation servi&e &ompan#

in Pa'istan

Largest 89edline net4or' and hugeinternational net4or' spread throughsubmarine &able s#stem;

Manages and operates )... telephonee9&hanges a&ross the &ountr#


4/21

>mportan&e of PTCLne of the largest and one of the ver#

fe4 pro8table stateo4ned enterprise in

Pa'istan *mplo#ed 5)?... people a&ross

Pa'istan

Previousl# &ame under Civil !ervants

A&t? (@5, Listed in ara&hi? Lahore and >slamabad

!to&' *9&hanges


5/21

=ilemma 4ith PTCL

Government had fe4 maBor issues at handfor PTCL: o strategi& dire&tion

La&' of monetar# resour&es forte&hnologi&al advan&ement

*9&ess emplo#abilit#Dver staEng

Poor eE&ien and poor s4eating ofassets


6/21

Govt+s approa&h to resolution ofissues: Privatization

>n )..,? Government of Pa'istanprepared a highl# intensive privatization

program PTCL 4as privatized in )..2 )2 shares sold to *tisilat >nternational

HA*I 4ith management rights

() shares o


7/21

*tisilat+s Challenge The ne4 management had t4o tas's at hand: Rationalize *mplo#ment !hort TermI

Ma9imize Pro8tabilit# Long TermI

Pro8t Ma9imization 4as onl# possible through:

Te&hnologi&al advan&ement and infrastru&ture improvement

Redu&tion in operational &osts Multiple sta'eholders 7 pressure groups due to federal s&ope

Rights of &urrent emplo#ees ensured through privatization dealfor&ed la# o< not allo4ed

%usiness &ontinuit# 4as e9tremel# important

Multiple &ategories of emplo#ments


8/21

*tisilat+s ResponseThe d#nami&s of tele&om industr# 4ere &hanging

rapidl# PTCL had to a&t "ui&'l#

The management de&ided to pro&eed 4ithrightsizing through -oluntar# !eparation !&heme-!!I Program

%usiness Case Rationale for Rightsizing:PTCL&arried out a &omprehensive resear&h through

M&inse# 7 Compan# 4hi&h did a thoroughben&hmar'ing and established to have ama9imum emplo#ment for (1?... people againstthe prevailing 5)?...


9/21

-!! -oluntar# !eparation!&hemeI *mplo#ees 4ere given the option to freely and independently

&onsider and &hoose the separation s&heme Appli&able on regular and CPG emplo#ees

=ivided into follo4ing &ategories:Transition Compensation

%ene8ts Compensation

ptee Program

!upplementar# %ene8ts


10/21

Pa&'age Components

Optee SupportProgram

TransitionCompensation

BenetsCompensation

SupplementaryBenets

Transition Pay Early Bird

Bonus Program Bonus

Commutation/

Gratuity Health Fund Leae En!ashment "llo#an!e Benets

$o% Sear!h &Outpla!ement Seri!es

Finan!ial "ssistan!e 'o!ational Trainings

(rite o) Loans


11/21

Challenges fa&ed in -!!>mplementation

Kuge organizational stru&ture

ation4ide presen&e

rganizational politi&s

Comple9 emplo#ment &ategories

Pressure groups

*motional atta&hment to organization


12/21

-!! in )..5 The !u&&essThe )..5 -!! 4as a huge su&&ess

,)?... emplo#ees opted to ta'e voluntar# separation

PTCL engaged several e


13/21

-!! in ).() The 8as&o *n&ouraged b# the results of )..5? PTCL laun&hed -!! again in

).()

This -!! 4as laun&hed targeting the senior govt emplo#ees

Anti&ipating the &ompan#+s move? the senior emplo#ees legall#

&harged the &ompan#

PTCL? 4anting to avoid an# litigation? 4ithdre4 the program

nl# 1?2.. emplo#ees too' the o


14/21

-!! in ).(0 Learning frommista'es

PTCL &arried out &omprehensive 4or'ing prior too


15/21

-!! in ).(0 Learning frommista'es !mart ta&ti&s 4ere used to identif# and isolate the un4anted

emplo#ees:

>nternal transfers to remote and out of &omfort zone lo&ations Hne9pe&ted promotions and e9pose of nonperformers

=ela# ta&ti&s e;g;? for leaves

=emotivation tools? e;g; no in&rements

=i


16/21

-!! ).(0 A step &loserKaving &arried out the previousl#

mentioned ta&ti&s? PTCL then laun&hed

the ).(0 -!!This program 4as met 4ith great

su&&ess

Appro9; (5?... emplo#ees opted for the

-!! %ringing PTCL &loser 4ithin tou&hing

distan&e of their (1?... emplo#eetarget


17/21

Comparison'SS *+,* 'SS *+,3

Minimum AmountRs; /1.?...

it 4as 21.?... in -!! )../IRs; @1.?...

Transition %onus . Rs; ,1.?...

Retirement %ene8ts

!ervi&e for Pension*ligibilit#

). Nears o rela9ationI (/ Nears ) Nears rela9ationI

Addition in !ervi&e Nears . ) Nears

Regular Pension *ligibleI nl# ,1,1 to (). as per *mplo#ees

Choi&e

Regular Pension ot*ligibleI

Rs; ,..?... as !eparation%onus

4hi&h 4as ta9ableI

1. &ommutation Min : Rs;,1.?...I

3hi&h is Ta9 e9emptedI

Gratuit# CPGI ne %asi& per Near Four %asi&s per Near

Leave *n&ashmentMa9 of @2 for CPG 7 (/. for

Regular!ubBe&t to Available %alan&eI

(/. for ever#oneeven if leave balan&e is $*RI

Allo4an&e %ene8ts Given onl# on Kouse Rent Given on All Monthl# Allo4an&es

Loan Amounts =edu&ted from Final Pa#ment 3ritten o<


18/21

Results !in&e rightsizing? PTCL has been able to revive itself in

te&hnolog# infrastru&ture

Revenues have more than doubled from )..2? no4

standing Rs; /( billionGross pro8ts subse"uentl# have risen to Rs; )1 billion?

4ith onl# -!! remuneration bringing it to lo4er than ).(,

Compan# is no4 venturing on ,G and 0G proBe&ts along4ith >PT- servi&es

Customer feedba&' and response time has improvedsigni8&antl#

PTCL is developing itself as a respe&table &orporate brand


19/21

3a# For4ardO PTCL is no4 fe4 steps a4a# from a&hieving its goal

>t is planning on to bring another -!! to a&hieve

the target of (1?... emplo#ees Challenges a4ait? but the management is ver#

&on8dent of a&hieving the target earlier than thestipulated time

>t is not eas# to la#o< the remaining last &hun'

stubborn and insensitive attitudeThese emplo#ees are strong obsta&le in overall

&ulture &hange of the organization


20/21

Re&ommendations A more lu&rative -!!

>ndividual &ounseling pattern of pressure

groups and underl#ing fa&tors identi8ed Po&'et Hnions

Hsage of inuential people

Group in&entive

)ndphase: -!! CPG &ombo pa&'age

in&rement and a &ategor# &hange onl#I


21/21

Than' #ouQ 6uestions please

Documents

Rightsizing at PTCL - Final Version