OREANDA-NEWS. March 03, 2011. TransTeleCom Ltd., the parent company of Russia’s largest backbone network carrier, has announced that TTK’s Board of Directors has approved a new organizational structure. Introduction of the new organizational structure is the first phase of a large-scale project to optimize the management structure of the TTK Group of Companies. The project is being implemented as a part of the Development Strategy of the TTK Group of Companies for 2011-2015 and the Strategic Development Program of the Russian Railways (RZD) Holding, reported the press-centre of TTK.

The organizational structure of TTK provides for the formation of three independent business units: Backbone Network, Access and System Integration and Construction. There will be a separate back office for HR, financial, legal and other services. The approved model of the organizational structure is fully compatible with industry practice and is employed by many telecommunications market participants both in Russia and abroad.

The principle of customer orientation is the foundation of TTK’s new organizational structure: the Backbone Network Department will manage sales to large corporate customers, while the Access Department will develop services for private customers. The System Integration and Construction Department combines projects to build communications facilities for large customers and public sector organizations. During the transition to the new model, the number of departments at TTK will be reduced from 31 to 27, and the number of vice presidents will be reduced to 9 people instead of the present 19.

TTK President Artem Kudryavtsev notes: “The transformation of the organizational structure is the first step toward creating a unified, vertically integrated company. Formation of the business units will reduce administrative costs, increase the personal responsibility of division managers and facilitate control over fulfillment of target figures. All of this will provide us with new opportunities to develop traditional business and realize our potential on the retail service market.”

Along with the introduction of TransTeleCom Ltd.’s organizational structure under the project to optimize the management structure of the TTK Group of Companies, there are plans to combine regional assets into a single company and move to a three-level branch structure: Center (federal level), Macroregions (regional level) and Branch (city customers).