OREANDA-NEWS. On 03 March 2008 was announced, that Sibirtelecom summed up the results of the first phase of its broad-scale restructuring program. The transformation efforts resulted in new approaches to the company’s management, business conduct and the new corporate structure of the company’s headquarters.

Sibirtelecom’s business restructuring, which got under way in the second quarter of 2007, has become the biggest since the company’s establishment. The operator pursued the target of turning into a provider of modern telecommunications services that understands its subscribers. Such an ambitious objective required radical changes (structural, technology and innovative) at the company. “We are not simply changing the company’s image, making it a client-driven and advanced business” – Sibirtelecom CEO Alexander Isaev said adding that sweeping changes are underway in business processes, the management model and approaches how to arrange sales and services. “We pursue the large-scale goal of remaking the company’s business profile and turning from a fixed-line operator into a provider of voice convergence, Internet access and datacom services”.

The first stage of restructuring covered the structure of Sibirtelecom’s headquarters. A total of 12 functional units with clear demarcation of authority were created within the new corporate structure that was built with Europe’s largest concerns taken as an example. The most tangible changes were made at Sibirtelecom’s commercial division where all business processes were separated into specific departments with a narrow business focus. For example, the promotion of services offered to mass clients, businesses, wireless operators and telecom carriers were detached into 4 separate business processes. These transformations will enable the company to tailor its products to the needs of each customer and promptly react to consumer demand. At the same time, concentrating service management within one functional unit will give the opportunity to make efficient management of the telecommunications service mix from development to promotion and customer service.

Right now the company is to commence the second stage of the restructuring program. As part of this phase all Sibirtelecom’s branches are to start phasing in new business processes and procedures that were worked out by the company’s headquarters. Corporate structures will be transformed at regional branches, while management functions in the districts are to be split up by areas of activities (rather than on a territorial basis, as was the case before). Two new divisions responsible for the technical condition of networks and commercial activities will be set up at each branch instead of the existing structural divisions (telecommunications centers) in the districts of the regions Sibirtelecom covers.

Sibirtelecom’s short-term plans are to transform the sales and customer service system at all levels of the company, including branches in the districts. A project to overhaul the sales and customer service system comprises 12 programs designed for implementation within 2008-2012. The company intends to segment sales and customer service channels in terms of their efficiency, phase in a system for active and cross-active sales (promotion of the services by specialists whose official duties are not directly related to sales activities, client proximity); change the budgeting system given the efficiency of all divisions, customer service centers, sales groups (distribution of financial resources in terms of demand and the execution of large challenging projects); unify all service structures.

The first step in this direction was consistent efforts to improve the quality of services and provide technical and information support to customers. Sibirtelecom has initiated the introduction of a system to audit customer applications and promptly monitor claims, work out training programs for POS employees and telecom providers. The expected changes will allow the company to dynamically expand on the Siberian telecommunications market and make subscribers' visit to telecom sales offices pleasant and comfortable.