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p:\fcs\oc\00tool\material\deliver\casestdy.doc DATE \l 5/23/95 Page PAGE 1 Case Study A Hard Solution, A Soft Landing Since its privatization, a European telecommunications company had worked hard to improve its products and services as well as its general reputation. As a privatized entity, the company had to be more responsive than before to market forces, and this was no secret. On the other hand, through its regulatory powers, the government remained something of a shadow boss, often working at cross-purpose to market forces. The company soon found itself between a rock and a hard place. Its hope lay in well conceived, well accepted change. The significant costs associated with offering a high level of service had become a problem for the company because industry regulation forced it to hold down prices, no matter how costly the services demanded by the marketplace. This conflict forced the company to examine how to provide services more efficiently without reducing quality. One obvious solution was to improve the productivity of the work force. Internal studies had shown that much of the engineering staff’s time was routinely lost--for all sorts of reasons. This “leak” offered a perfect opportunity to try to change. To investigate and make recommendations, the company assembled a project team of people who actually did the jobs and engaged in the processes that needed reengineering. This alone represented an important first: In the company’s history, no project team had ever had such an intimate knowledge of its issues, such a clear stake in the outcome of its work. These were the people who would gather information, set standards, and, most important, convince their colleagues that the draft solutions were appropriate and achievable. The team observed current work methods and analyzed vast quantities of historical data on every aspect of the business. Through this demanding process, the extent of the opportunity for change was closely defined,