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GTE CASE FOR SENN DELANEY GTE Telephone Operations is the largest local telephone company in the United States and the fourth largest publicly owned telecommunications company globally. The local telephone industry is just steps behind the long distance telephone business in terms of open markets and competitive change. The company’s senior managers were faced with the belief that over the next ten years their revenue based would shift from a largely regulated and protected base to one which is largely competitive and at risk. During one of the largest process reengineering projects ever undertaken, GTE Telephone Operations management was stunned to learn that administrative bureaucracy was reducing productivity by as much as 50 percent. After thoroughly examining its own processes, the GTE effort benchmarked 80 companies in a wide variety of industries. Dave Allen, the Assistant Vice President responsible for the management of the reengineering workplan wrote at the time, “Our old culture rewarded doers but, frankly, had been rather disparaging about dreamers. Keep in mind that we used to operate in a hermetically sealed business environment. Our revenues were so secure that one of our senior executives said several years ago, ‘We’re a telephone company. We don’t have to plan, we just schedule.’ His comments represent a good observation and are consistent with the old regulated industry culture.” As Dave and his colleagues at GTE Telephone Operations committed to an earth shaking change initiative: they had to “blend our tradition of being great doers with a new ability to dream. Process reengineering is our most ambitious attempt yet to make this mind meld work.” In order to maintain a leadership position in its markets, a giant leap change was required. Teams were formed to focus on “big ticket” processes, where opportunities to reduce cost and improve service responsiveness were considered greatest. Arthur Andersen helped GTE identify the major p