7/23/2019 AsiaTel Case on Open System

1/1

AsiaTel Case on Open System

Problem:AsiaTel, a leading provider of telephone services in a Southeast Asian country, had lost its footing.

In a rapidly changing competitive environment, it was faring poorly. Profit margins, ROCE and

share price were all declining. Internal problems were at the root of AsiaTel's financial troubles.

The company was dragged down by low employee productivity, lack of customer focus, a monopoly

culture and paternalistic management. Bain Consultants were asked to help AsiaTel articulate aclear vision and overhaul the drivers of productivity.

Approach:

The change program at AsiaTel spanned four years and included defining the redesign project,

implementing it and tracking progress.

Recommendations:

More than 50 cost and service initiatives were launched, which improved productivity by

400 percent.

Results:

After substantially reducing headcount and capital expenditures and increasing productivity,

AsiaTel was rewarded with investor confidence.