Why is Telecom Making 1500 staff Redundant?


telephoneTelecom is once again making a large number of staff redundant. According to Labour ICT spokesperson Clare Curran up to 1,500 people will lose their jobs. This is the result of a planned restructure, although Telecom is not prepared to confirm the numbers. My question is how did Telecom get to a position where they were so overstaffed? You don’t suddenly find you have 1,500 people more than you need on the payroll, do you? 

I started my career with Telecom as a Technical Service Officer back in the day when they had 26,000 staff and was part of NZ Post, which all changed back in the late 1980’s. I joined them because at school they taught us that the communications age was on us and I had a fascination for the future from the age of 7 or 8, reading the Science Fiction greats.

I went to Post Office Technical Training School on College Hill in Auckland and enjoyed a phenomenal education, covering all elements of technology from engineering and how transistors work, through to how exchanges work, management and people skills and everything in between. My training included working in the different types of telephone exchanges, working with fault-men, linesmen, cable jointers, engineers, radio and much more. I loved my job. I loved learning and was one of only two people over the years to score 100% in most of my exams.

I recognized early on though, that the ‘system’ that provided people with 40 year gold watch careers was fatally flawed and whilst the education was world class, HR was pretty much non existent. Promotion was based on a system called ‘Reporting’ where each year we were asked to rate, rank and comment our colleagues, who spent the month before, almost like politicians going to all the colleagues, saying “I’ll give you a good report if you do the same for me.”

PeterI saw totally incompetent people rise to the top of the flock, whilst others continued to work their 24 hour shifts who really should have been making the move into management, because they had the people skills, experience and the ability to take on senior decision making roles. That was my second experience of the Peter Principle, the problem was that it wasn’t one off, it was institutionalized. Telecom was an old school Government Department and whilst many of us worked very hard, those who didn’t want to, could graze on the effort of those who did. If the organisation was better managed and only staffed by people who wanted to work, we could have easily cut 5,000 from the staff without significant reduction in productivity.

I left Telecom at the time, because I wanted to grow into a management career, but I also wanted to be working in the industry with a company that was forward thinking and fortunately I found  7 year career opportunity at Tait Electronics, who I subsequently left to move to a more senior level in another ICT company.

After I left, Telecom made many of my colleagues redundant. 6 months later they found out they couldn’t function without their skills and brought many of them back as contractors (some of whom stayed for more than 10 years) on a significantly increased pay scale. They did the same jobs, but as self employed people, and it cost Telecom much more.

There seems to be, in my opinion, a major problem that creeps into corporates. The bigger they get, the more politics comes into play, just as it did back in the day. They become inefficient, decisions are often made in the interests of senior people, rather than in the interest of the company. They add on staff to grow empires and create division after division of people to fill roles that aren’t necessarily needed, often at the cost of other areas that are not well served.

Telecom spokesperson Andrew Pirie told Stuff that “while job reductions would occur across the board at Telecom, many of the cuts would be to middle management functions in administrative areas such as finance and human resources.” That begs the question of why there are so many people in those roles in the first place. I can understand that there could be a couple of dozen people in a company of that size that from time to time need to change roles, departments or as focus changes, may find their positions redundant. I have to ask though, how does a corporate get to a position where they have 1500 people more than they need?

Who is responsible to the shareholders and the staff for allowing this to happen? Are the shareholders asking questions as to why their share value is going down, if those staff were redundant, why were they employed? What has changed? The classic result then would be that someone will have to fall on the sword, but I think perhaps the discussion should start with Minister Steven Joyce asking some serious questions. Problem is, he’s still asking questions about Novopay. Don’t get me started on our education system. I’ll leave that for another day’s soap box about how we are paying lip service to the importance of the future of our children, tomorrow’s leaders and the teachers who we have been let down so badly, but continue to serve for the sake of the children.

So the good news is that Rod Drury of Xero and Ian McCrae of Orion Health are looking for quality staff and are struggling to find them here. The bad news is that Telecom is saying that most of the people being made redundant aren’t the ICT people that Rod and Ian want.

Census 2013 So What Did You Think?


CensusOur household did it online and I have to say it was a smooth and easy process. The questions we didn’t have to answer were grayed out and we were all done and dusted in no time. Hopefully this means that finally we can hold referendums and vote online in future.

However, to me it was a major missed opportunity to learn more about who Kiwis are, what they do and where. This seemed to be to be simply a modern version of the feudal system where nobility tried to establish how much tax they could claim from their citizens. I love the Census system, always used to use copies of the books the Statistics Department used to put out and have been a keen user of the tables and tool builders on the website over more recent years. This Big Data has a huge impact on where to do business, where to build shops and factories, schools etc and the potential to not require costly double ups of data collection as will remain necessary for many Government organisations.

Here are a few thoughts from me of things that I would have liked to know and would have been easy to include and a few comments on what was included:

Ethnicity. For a country that is so multi-ethnic there were only 8 ethnicities offered and one of them was New Zealand European. That effectively makes it a political question and one that does not allow qualitative or quantitative research. As anyone who has studied statistics knows, most European Caucasians will  select the first option, leaving us with skewed data. How about culture. I know people who will register as Chinese because they look like their ancestors, but were born and raised in New Zealand and in most things they do other than appearance are indistinguishable from any other NZ born person. On the other hand there are people who totally live the culture of their family and do not integrate much with our everyday society.

The question on what languages you can have a conversation in, was easy for people who really don’t speak English, to say they do. This to me is important because we know there are now large numbers of people who will struggle to answer a question like “where is the nearest dairy?” in English.

What is your religion? This to me is very old school. You either belong to a sect or you have no religion. What if you are agnostic, spiritual but don’t belong to a particular church? This would effectively assume that if you have no religion, you do not believe in a higher spirit, God if you will.

I would have liked to know what people’s jobs are. As a futurist, I’m aware that many of today’s roles or job titles didn’t exist 20 years ago and it would be very interesting to be able to identify shifts in trends in employment. Yes, this information is available to IRD, but I want to know these answers and you could argue the same about the table which asks about personal annual income.

The employment questions also didn’t support all options. For example, I am a founder in a couple of start-ups. I am not an employee and I do not draw any money from the companies. I work very long hours in them. But I couldn’t answer the how many hours do you work in your job, because I’m not employed by the companies. These are not family businesses or family farms, although we do have a project creating virtual pets. Because I don’t have a ‘job’ all the options below these questions were grayed out. I was left with the questions of did I apply for a job and if so, how. BTW I also do not get any sort of benefit from the Government.

The only questions on health focused on disabilities that stop you from earning money or require a benefit. Wouldn’t it have been interesting to get more information on conditions such as asthma, diabetes, ADHD, Autism, Cancer etc. where people continue to work or study. Not so much from a single point in time but from a trend perspective. Tie this into geospatial mesh blocks and area units and some very interesting information might have emerged. What about depression and mental health? If we were able to see statistics based on location, what discoveries might that lead to? Perhaps ones that Government doesn’t want to reveal?

They asked how many cars were available to the household, not how old they were, how often they were used, how big the engines were, whether they were NZ new? Yes, again I know this information is collected by other Government agencies, but it is not made available to the public and business in the same way.

Question 32 would have appealed to teachers. In the last 7 days did you work for pay, profit or income for an hour or more. Novopay anyone? How many people worked but haven’t been paid? Many have waited much more than a week, I’ve heard of people who still have pay overdue for months! (No I am not a teacher).

What else would I like to know?

  • Do you have a land-line (that has dial tone)? Because in the event of power outages like earthquakes, they often still work.
  • Do you have a broadband connection? VOIP?
  • How many computers do you have at home that can access the internet?
  • How many mobiles do you have in the household that are connected? How many of those are Smartphones?
  • How many hours a week do you spend: Playing Sport or other outdoor activities? In club or organised activities? Watching TV? Playing computer games? On social media?
  • Do you BYOD to work and use it for work purposes?
  • How often do you buy fast food or eat out?
  • What about savings? What do people do with their money? Are they part of a super scheme like Kiwi Saver? Do they buy stocks (Mighty River Power would like to know)? What was the last big purchase in the last 12 months?
  • How about leisure, do they go away for a holiday? In NZ or overseas? Can they afford one at all? How long for?

There are many more questions that could have been asked like, how easy was it to complete this online? Would you be happy to vote in the next elections online?

So in summing up, its great to finally have a Census again and I’m looking forward to finding out what has changed in New Zealand, particularly as a result of the Canterbury earthquakes, but also information like how many NZ born people have left the country permanently, what is the make up of this country today compared to the last Census.

Congratulations on what appeared to be a smooth online operation, but what a missed opportunity to get some more learning. I think there has been so much focus on finally getting the job done, that there was insufficient focus on getting some highly important and valuable new data. The world has changed so much in 5 years. It appears like Novopay, that not much else has when it comes to taking advantage of 21st Century technology.

What do you think?

Consumption 2.0 and Mobile Society


I’ve just read an article by Hugo Garcia of Futures Lab in Portugal in the latest issue of The Futurist. He was outlining how younger people today are more mobile, more focussed on consuming goods, services and experiences, rather than being attached to things and places. One area that he was strong on was the fact that people are now so mobile and keen to explore the world and their environments.

Location becomes far more important because you are continuing moving around as opposed to tied to a fixed location in the world. He said that one example is the trend towards not owning a home, perhaps ever. I always hear talk about how hard it is to get into property, I don’t think it has ever been easy. When we bought our first home (to give ourselves and our children some long term security) we bought in a cheap neighbourhood and at one stage were paying in excess on 20% interest. For a couple of years in the beginning, we went without pretty much anything, just to pay the interest. Today many don’t want to restrict their lifestyle, making it a choice, their choice is to live for today.

The ‘office’ is for many people today, especially knowledge workers, not somewhere we need to be a lot of the time and the cost of maintaining an office, commuting, car parking (you could almost rent a room for the cost of my Auckland City car park). We go to the office when we need to, for meetings, teamwork etc, but otherwise I can be much more productive from my home office.

White BikesHugo talks about shared mobility. This is not a new concept, but certainly one that is coming back with a vengeance. Back in the 1960’s the Provos introduced white bikes that anyone could use. The idea was that you grabbed a bike, rode it to where you wanted to go and left it there for the next person to use. Their concept, same as today was to reduce pollution and traffic congestion and promote community engagement. They were certainly engaged as very quickly the bikes were stolen and repainted, but the idea was very good.

Today carpooling continues to grow, Zipcars, recently purchased by Avis, which is currently being debated as to whether it was an anticompetitive manoeuvre, is an example of car sharing, which in principle makes a lot of sense. People share ownership in boats, holiday homes and other items and many people are travelling around the world using the services of portals like Airbnb. There are loads of companies sprouting up like Whipcar, which lets you rent out your own vehicle when you don’t need it.

Globalisation is also an area that is changing rapidly. I remember reading history books about the great depression and how people moved from town to town looking for work. Mobility today is something far more international and international borders are being crossed continually by people in search of work, whether it is because they can’t find it at home, want a better life, or simply enjoy the itinerant lifestyle. Over a million Kiwis are working and living overseas, while British and other nationalities are moving to New Zealand to work on projects such as the reconstruction of  Christchurch.

Hugo points out there are pro’s and cons. “Unfortunately, some areas may become abandoned because they lack competitive advantages. The war for talent between countries will increase, but regions that offer good living conditions may gain an advantage.

I note again that knowledge workers, one of the biggest industry segments today can often work from anywhere and travel when required. I know many journalists and developers that live in small towns for the lifestyle, but can still perform on a global stage.

This mobile society opens up huge scope for innovation and disruption, particularly with location based services, applications for mobile use, which can support the new mobile lifestyle. Kiwi developers can and are developing applications used globally, despite those that say you can’t be successful unless you are in Silicon Valley, things are changing. The money may be there, but they don’t have a monopoly of good ideas.

If anyone knows about a mobile lifestyle its Kiwis, anywhere is a long way from New Zealand. We know how to travel, we absorb and learn and we love new technology. Where we need help is harnessing our smarts, to help our innovators and entrepreneurs to learn how to scale and think big. That’s a tough ask and I don’t think our Government is doing anywhere near enough to ensure that smart people are able to grow from small concepts to large global enterprises.

I was just asking myself how I suddenly got on my soap box, but then I’m not sure I ever get off it:)