Telstra today announced a refined long term strategy supported by business unit changes aligning senior leaders to growth opportunities in Australia and overseas.
Telstra CEO David Thodey said the realignment would ensure Telstra focused on the critical areas of customer service excellence, core revenue and growth.
Speaking at a Telstra investor day in Sydney, Mr Thodey said Telstra must continue to focus on its core Australian business while exploring new opportunities domestically and internationally, particularly across the Asia region.
Telstra’s strategy now has three pillars evolving from the previous four pillars –
“Our strategy is simpler and more impactful. It makes our ambitions clearer and shows where shareholders can expect us to continue building value,” Mr Thodey said.
“We must serve our global customers at international scale, leveraging our expertise into Asia and other regions, while seeking to deliver outstanding customer service every day in every home, street and business around Australia.
“This strategy provides greater organisational clarity around our growth portfolios. New businesses such as global applications and platforms, cloud solutions and e-health were not opportunities three years ago and can play important roles as we head towards 2020 and beyond.”
The investor day reviewed Telstra’s performance in key growth areas such as Network Applications and Services, mobile network expansion, digital media and global applications and ventures. Full presentation materials are available online.
Telstra strategy refinements
Telstra’s three-pillar strategy simplifies the previous strategic framework developed in 2010, reflecting the company’s evolution in its customer-focused journey and identification of new opportunities.
Telstra’s capital management framework, announced by the company in 2012, remains unchanged.
The framework guides management decisions according to a set of criteria and provides transparency for shareholders.
Telstra portfolio changes
Following Telstra’s new strategic pillars, key portfolio changes in the business include –
Riley’s responsibilities will include Network Application Services worldwide, Global Applications and Platforms, a new cloud division, Telstra Ventures, Telstra Enterprise and Government and Defence.
The unit reflects rapid growth in key portfolio areas and the global market in which these services
Chief Financial Officer Andrew Penn will work with Mr Thodey and Telstra International Group President and Group Executive Tim Chen to enhance Telstra’s Asia strategy, drawing on Mr Penn’s extensive experience across Asia Pacific markets. Group Executive Corporate Affairs Tony Warren will again lead Telstra’s negotiations with the Federal Government on the National Broadband Network. All portfolio changes will be effective Monday 28 October.
Other CEO leadership team members reporting to Mr Thodey remain unchanged: Rick Ellis, Group Executive Telstra Media Group; Tracey Gavegan, Group Executive Human Resources; Stuart Lee, Group Executive Telstra Wholesale; Carmel Mulhern, Group General Counsel; and Robert Nason, Group Executive Business Support and Improvement.
“These changes make sense because they reflect our business needs and the exciting and rapidly moving environment around us,” Mr Thodey said.
“Structure follows strategy so we have asked some of our most senior leaders to take on new or expanded opportunities to ensure we deliver on these promises. Each executive has considerable experience inside the industry as well as other industry sectors or global markets.”