56223766 Leadership and Change Management Saad

8/4/2019 56223766 Leadership and Change Management Saad

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ASSOCIATION OF BUSINESS EXECUTIVE (UK)

Assignment on

LEADERSHIP AND CHANGE MANAGEMENT

Submitted By: Sadaf Raja

ABE No. : W09527


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EXECUTIVE SUMMARY:

Sistama-Shayam telelink merged on January 23, 2009:Shyam Telelink Limited, the latest

entrant in the Indian telecom space, today formally announced the change of its name from

Shyam Telelink Limited to Sistema Shyam Tele Services (SSTS). The name change was

announced by the company following an EGM meeting where the decision for the transition

from STL to SSTS was ratified. Sistema Shyam Tele Services (SSTS) is a joint venture

between Sistema (LSE: SSA) of Russia and Shyam Group of India Presently the company

has received the licenses for all 22 circles in India. Sistema Shyam Teleservices

Sistema is the majority share holder in this joint venture with a 73.71% equity stake, along

with the Shyam Group, holding a 23.79% stake and the rest 2.5% being public partake .SSTL

has spectrum to provide mobile telephony services in all the 22 circles across the

country..Presently SSTL offers mobile telephony services in the Rajasthan, Tamil

Nadu, Kerala as well as the Kolkata circles.

However, upon the new strategy of the Company of becoming a Pan India Operator,

a need was felt to bring Brand with Pan India appeal and global flavor. Accordingly

your Directors took a strategic decision and are delighted to inform you that your

Company has launched the globally acclaimed MTS brand in India and also

concluded the rebranding of Rajasthan from Rainbow to MTS without any

noticeable disruption in sales and smooth handover of Rainbow brand equity to

MTS. The Directors are confident that this global brand will be immensely

successful in cutting a niche in the Indian telecom market with its core instinctive

value for customer focus. The strength of MTS brand has been consistent and has been

recognized internationally in both 2009 & 2008 in BRANDZ TM as one of the top 100 most

powerful brands, a ranking published by the Financial Times and Milliward Brown, a leading

global market research and consulting firm. It has been ranked at the 71st position by

BRANDZ. Global recognition of MTS brand strength is a testimony to both the success of

MTS and the growing interest in markets of operation of the Company.


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Table of Content


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COMPANY INTRODUCTION

Sistema Shyam Teleservices Limited (formally known as Shyam telelink limited)Limited

(STL) was awarded the license operate Basic Telephony Services in Rajasthan under the

fixed license fee regime in 1996. Sistema Shyam Teleservices Limited (formally known as

Shyam telelink limited) started its basic telephone services in Rajasthan under the brand

name RAINBOW in June 2000 at Jaipur. The company migrated to the Unified License

Regime in November 2003. In the Unified License Regime, the company can provide basic

as well as mobile telephony services in the Telecom Circle of Rajasthan. Shyam offers its

services in more than 100 cities, and has one of the best brand recalls in Rajasthan Shyam

offers to its customers, services based on multiple technologies, which has been possible

because of exhaustive optical fibre backbone of over 3,500 Kms. This has helped STLL to

grow as an integrated service provider.

Sistema, was founded in 1993, is the largest private sector consumer services company in

Russia. Later in December 2007, Sistema received an approval for the acquisition of the

blocking stake in Sistema Shyam Teleservices Limited (formally known as Shyam telelink

limited) from the Foreign Investment Promotion Board (FIPB) of India. As a result of the

acquisition of the additional 41% stake, the overall purchase price totalled US$ 58.1 million.By June 2008 Sistema has upped its stake in Shyam Telelink, to73.1% from 51%. Sistema

plans to invest USD 5bn billion dollars in India in the next three years, targeting telecoms but

also real estate, high technology and banking. Sistema is one of several foreign players keen

to establish themselves in Indias booming telecoms market.

About sitema Shyam telelink

New Delhi, January 23, 2009:Shyam Telelink Limited, the latest entrant in the Indian

telecom space, today formally announced the change of its name from Shyam Telelink

Limited to Sistema Shyam Tele Services (SSTS). The name change was announced by the

company following an EGM meeting where the decision for the transition from STL to

SSTS was ratified. Sistema Shyam Tele Services (SSTS) is a joint venture between Sistema

(LSE: SSA) of Russia and Shyam Group of India Presently the company has received the

licenses for all 22 circles in India. Sistema Shyam Teleservices. (MTS, 2010)


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Literature Review

Transformation leadership theory

This theory is all about leadership that make encouraging change in the followers or

employers. They take care of every one interests and task in the interests of the group as an

entire.

Leaders task is consciousness-raising on a big planning. The leader's basic and primary act is

to persuade people to be aware or mindful of what they feel - to feel their right requirements

so strongly, to classify their values so significantly. This leadership style, the leader enhances

the inspiration, ethical and performance of his follower group. This leadership is all about

principles and importance, and a purpose that transcends short-term goals and focuses on top

order requirements.

Transformational leadership can be applied in this case change management situation and

context is ideally suitable to the holistic and broad view perspective of a programme based

approach to change management and it can be a key element of successful planning for

managing change. The companies had started making the combined engine and the whole

staffs were transformed. (Stephen, 2008)

Change management

Change management is a structured approach to transitioning individuals, teams,

and organization from a current and a desired future state. Organizational process aimed at

empowering employees to accept and embrace changes in their current business environment.

In project, change management refers to a project management process where changes to a

project are formally introduced and approved. (Geoff, 2007)

Benefits of change management

Change management takes the precious time of your organization most precarious

employees. Process of change management is worth the trouble.

Change management helps to lower risks add with change, eliminate resource conflicts and

repetition, and learn from successes and mistakes of the past.


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Change management can offer an inside means to achieve the near-universal goals of

advanced internal teamwork and external end-user satisfaction

Change model

Change management, a critical component of 21st century business, can be achieved

successfully using the ADKAR procedure. Change often brings high levels of stress and

agitation to people. This method of implementing change in the corporate world often

eliminates many of the negative effects associated with new procedures.

Awareness. Make all level of staff aware why the upcoming change is needed. Change for

the sake of change is seldom useful. Nevertheless, change implemented to improve business

operations, stay ahead of your competition, and/or increase the bottom line, is not only wise,

but also necessary for success.

Desire. It is imperative that management encourage the desire of their employees to support

and actively participate in the forthcoming change, regardless of the immediate appeal or

flash of the new procedures or processes.

Knowledge. Management must provide the training and education to its staff of the methods

of changing to the new procedures, software, or organization. High levels of awareness and

desire will often be useless without the necessary knowledge of how to change to accomplish

the goals desired.

Ability. Along with the knowledge of how to affect successful change, everyone involved

needs to be given the specific training and information to achieve success in implementing

the details of the changes to be made. Onsite or Internet schooling is a critical component of

delivering the education the staff needs to make the changes successfully.

Reinforcement. Just as a good youth sports coach understands that young people can only

learn to hit a pitch, shoot a basketball, or kick a soccer ball properly through repetition and

reinforcement, the same procedure is critical to successful change management. Studies have

proven that a person that repeats a task for 21 days religiously will create a habit whether it

is a good or bad habit. Reinforcing the new habits of the staff typically improve the success

of the changes made.


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Change management is a necessaryif not criticalcomponent of 21st century business and

effective management. This relatively simple, logical method ofimplementing change

management has proven to work well. It is not surprising or mysterious. This model, if

applied completely, should result in a successful transition from former procedures to new

procedures without fail or regardless of the complexity of the change.

Concentrating on awareness, desire, and knowledge, like a solid foundation in a new

building, provides the base for the acceptance of change and the ability to successfully

implement the new process. With this positive base, when you provide the ability and follow

up with strong reinforcement, not only will the natural human reluctance to accept change be

eliminated, you will often enjoy a strong team effort to make the coming developments

proceed smoothly and very successfully. Senior management knows it is critical to

competitive victory. Implementing ADKAR properly often translates into change

management devoid of trauma, stress, and regression. (Hiatt, 2006)


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Consequences of change

Experience in Russia: MTS is having a huge experience in this field of business as they have

been showing their presence since 1993 and a great customer experience in Russia and in

other countries. Experience of MTS will help them to plan their strategy for Indian market

accordingly.

Pan India footprint: MTS is going to offer the most expansive roaming network. Letting you

roam anywhere in India with its Pan-India presence, and trot across the globe with

International Roaming spread in over the networks. The mobile services group provides

CDMA mobile services across India in 11 telecom circles.

Low tariff plan: MTS is coming with one of most cheapest tariffs in telecom sector by

providing paisa second call and in some region plan gets even cheaper paisa 2

seconds.MTS is also launching a very different and attractive scheme i.e..100000 minute free

talk time with every new connection. Innovative schemes: Sistema Shyam Teleservices have

launched a special offer in Rajasthan, wherein a MTS mobile customer can make unlimitedout going calls to any MTS mobile within the state for 999 days just by paying 999 rupees,

(Moneycontrol.com, 2009)


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Change agent

Change agent human ability or company body of things to gating a higher degree of outcome.

Beginning with the end in mind, the goal of a change agent is really to make changes. Result

of change agent work is to enable people to do more, or search a new and good perspective

on life.

Mr. Vsevolod Rozanov, President & CEO, Sistema Shyam TeleServices he was playing our

role very wall. This processes in which he acted as.

Sistema (LSE: SSA) is the majority shareholder in this venture with Shyam Group being the

other partner. As our name suggests, we envisage optimizing this synergy of two players

from different countries with a clear cut focus on becoming a strong telecom player

in India. SSTS is an integral and important part of the overall Sistema global expansion

footprint. (Moneycontrol.com, 2009)

Change resistance

There should act more transparent and groups when last change attempted for their progress.

Key words here are perceived and threat. The threat require not be actual or big for resistance

to happen. In its common warning it refers to change within company, while it also is found

in another place in other forms. Resistance is the equal of objections in sales and divergence

in common negotiations. Resistance can receive many forms, include actively or passively,

open or hidden, individual or structured, aggressive.

Sistema, is the largest private sector consumer services company in Russi. Both of company

environment and culture is very different so employees had culture environment problems in

starting of analyse. Because employees were not adapting a proper way new environmental

culture they were also facing leadership change problems; they were not accepted in proper

way new leadership starting of alliances\ (Ajit, 2010)


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Change during merger

Structure of alliances and principle

Sistema Shyam TeleServices (SSTS) is a joint venture between Sistema (LSE: SSA)

of Russia and Shyam Group of India.

Sistema Shyam Tele Services (SSTL) is a joint venture company between Sistema{LSE: SSA} of Russia and Shyam Group of India.

Sistema is the majority share holder in this joint venture with a 73.71% equity stake,along with the Shyam Group, holding a 23.79% stake and the rest 2.5% being public

partake

SSTL has spectrum to provide mobile telephony services in all the 22 circles acrossthe country.

Presently SSTL offers mobile telephony services in the Rajasthan, Tamil Nadu,Kerala as well as the Kolkata circles.

Mr. Vsevolod Rozanov, President & CEO, Sistema Shyam TeleServices said, Sistema (LSE:

SSA) is the majority shareholder in this venture with Shyam Group being the other partner.

As our name suggests, we envisage optimizing this synergy of two players from different

countries with a clear cut focus on becoming a strong telecom player in India. SSTS is an

integral and important part of the overall Sistema global expansion footprint.

As part of its fast-paced growth plans as also to meet business requirements, SSTS shifted to

a new principal office in Gurgaon, which is in the Delhi-NCR region in India

(Moneycontrol.com, 2009)


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Effect after change

MTS brand was recognised as one of 100 most powerful brands, a leading global market

research and consulting firm. The firm recently tied up with Mobile TeleSystems OJSC of

Russia to bring the telecom brand MTS to India. Sistema is the majority shareholder in this

joint venture with a 74 per cent equity stake, along with the Shyam Group, holding of 23.5

per cent state and the rest 2.5 per cent being public partake.

CHANGE OF COMPANYS NAME

During the period under review, the name of the Company was changed from Shyam

Telelink Limited to Sistema Shyam TeleServices Limited with effect from 22nd Jan. 2009.

The name was changed in order to reflect the Joint venture between Sistema JSFC & Shyam

Group. This is reiterated that SISTEMA is one of the largest public diversified corporation

in Russia and the CIS, which manages fast growing companies operating in the consumer

services sector and SHYAM Group is a premier telecommunications equipment design &manufacturing organization in India with an eye on the global markets, and also in order to

make all concerned aware of this JV. (Ajit, 2010)

BRAND TRANSITION

Your Company had nurtured and cherished the Rainbow Brand in Rajasthan Circle and the

same had wide appeal. However, upon the new strategy of the Company of becoming a Pan

India Operator, a need was felt to bring Brand with Pan India appeal and global flavor.

Accordingly your Directors took a strategic decision and are delighted to inform you that

your Company has launched the globally acclaimed MTS brand in India and also concluded

the rebranding of Rajasthan from Rainbow to MTS without any noticeable disruption in sales

and smooth handover of Rainbow brand equity to MTS. The Directors are confident that this

global brand will be immensely successful in cutting a niche in the Indian telecom market

with its core instinctive value for customer focus. The strength of MTS brand has been

consistent and has been recognized internationally in both 2009 & 2008 in BRANDZ TM


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as one of the top 100 most powerful brands, a ranking published by the Financial Times and

Milliward Brown, a leading global market research and consulting firm. It has been ranked at

the 71st position by BRANDZ. Global recognition of MTS brand strength is a testimony to

both the success of MTS and the growing interest in markets of operation of the Company.

Your Directors are confident that in the coming times our mobile telephony brand MTS will

continue to strengthen and become the one of the most loved Telecom Brands of India. (Ajit,

2010)

LAUNCH OF NEW CIRCLES

Your Directors take pride in reporting that during the period under review with active

support, hard work and dedication of employees at all spheres, the Company accomplished

fast track growth expanding its presence by launching its CDMA services in five new circles

viz. Tamil Nadu, Kerala, Kolkata, West Bengal and Bihar apart from Rajasthan. It is a matter

of immense pleasure that these launches have been achieved on schedule and this all

success could be possible due to the untiring efforts that our employees, vendors, business

partners, associates have all put in.

RajsthanTamil Nadu & Kerala

Kolkata & West Bengal

Bihar

Delhi

Maharashtra

Karnataka

Kerala

Haryana

Jharkhand

Andhrapradesh

MARKET SCENARIO

India is one of the most dynamic and fastest growing telecom markets in the world. Indian

mobile market has registered stupendous growth in the current fiscal year due to easy


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availability of low cost devices, better network coverage, affordable services etc. As

demand boosters, progressive regulatory regime, network expansion by operators, reduction

in tariffs and cost of handsets, which essentially make the service affordable for the common

users, have supplemented the growth of the Indian telecom sector. In the past decade, the

growth in domestic telecom industry has largely been concentrated in the Metros and Class A

circles; still the coverage in the Class B and Class C cities is low at 15- 25%. Its worth noting

that 70% of the Indian population lives in rural areas, and, equally importantly, 64% of the

nations expenditure and 56% of its income comes from these villagesyet Indias rural tele-

density currently stands at less than 15%.

As far as year 2009 is concerned, there is not going to be any major slowdown in the telecom

business, as telecommunications tool s will help reduce expenditures for enterprises and

individuals. The industry is having 415.25 million subscribers as of May 2009 and likely to

add between 90-100 million new subscribers in residual part of 2009. The overall tele density

has reached 38.88% at the end of May 2009.

As per report of E&Y the total revenue of Indias telecommunications services industry is

projected to reach $54 billion in 2012. Total telecom subscriber base of India is estimated to

reach about 700 million by 2012, including about 650 million mobile phone users. This has

been due to the impact of economic reforms and pro-active policies of the Government.The Indian Telecom sector has witnessed dramatic transformation on almost all the fronts.

(MTS, 2010)


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Conclusion

Both of company people with different functional specialties or multidisciplinary skills,

responsible for carrying out all phrases of a program or project from start to finish. Sistama

have very good technology and good experience in global market.

They work in different areas (place) and they are doing a fan ominous job in an organization.

Therefore the result is much better and accurate and as a Sistama-Shayam has a very good

reputation and opportunity in the Indian market company can be transformed without

destroying its identities; you should respect the dignities of the employees in the company

It has been ranked at the 71st position by BRANDZ. Global recognition of MTS brand

strength is a testimony to both the success of MTS and the growing interest in markets of

operation of the Company.


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BibliographyAjit, D., 2010. Rainbow is now MTS. Business Outlook.

Geoff, K., 2007. Change Management Definition and Solutions. [Online] Available at:

http://www.cio.com/article/102902/Change_Management_Definition_and_Solutions.

Ghosn Carlos, 2002. Saving Busniss Without Losing Company.

Hiatt, J.M., 2006. InAdkar: A Model for Change in Business, Government and Our Community.

illustrated ed. Prosci.

Moneycontrol.com, 2009. Shyam Telelink becomes Sistema Shyam TeleServices. [Online] Available

at:http://www.moneycontrol.com/news/business/shyam-telelink-becomes-sistema-shyam-

teleservices_381763.html.

MTS, 2010.About SSTL. [Online] Available at:http://www.mtsindia.in.

MTS, 2010.Annual Report 2010. [Online] Available at:

http://www.mtsindia.in/corporate/downloads/15th%20Annual%20Reports%20for%202009-10.pdf.

Stephen, W., 2008. Transformational Leadership Theory. [Online] Available at:

http://www.cio.com/article/102902/Change_Management_Definition_and_Solutions.
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56223766 Leadership and Change Management Saad