Comments

Come on Tom, you know what they were thinking about. And that is how many tens of millions of dollars each will be stealing, errr, earning as a result of the merger.

If the merger happens to work for the shareholders and customers that would be great; but, they have already won, no matter the outcome.

Posted by Chris at March 27, 2006 6:12 PM

Great test for our day to day activities as well.

Posted by Jason Peterson at March 27, 2006 7:25 PM

Two weak companies are now one weak company-doesn't make sense.

Posted by Steve Mertz at March 27, 2006 10:43 PM

If you truly want excitement in tele-communications, intense competition, huge potential and a very exciting array of new products rolled out everyday, check out what is happening in India. The competition is so intense that the Government owned telecom company is one of the best options - from both coverage, rapid service, etc. The Telecom Regulatory Authority of India (TRAI) is one of the best consumer advocacy Govt bodies I have seen anywhere! Just recently they cut by half the Access Charges levied on new private carriers for laying the lines to all remote places - both for local long distance and International Long Distance. Service providers have started cutting their own charges by half. And they are confident that everytime they cut charges, their overall revenue GOES UP!

The size of the market is mind-boggling to say the least. Some of the smaller carriers are about 25 Million customers each, the combined size of Sprint and Nextel for comparison. The current installed base is about 100M landline and mobile customers to grow to about 250M in about 10 years. Villagers are going straight to Mobile lines bypassing landlines completely. Services are all GSM, Europe and rest of Asia compatible, roaming is available in all these countries easily and you can have tons of payment options - Post Paid (regular accounts), Prepaid Cards where it shows you what you have left everytime you make a call. You can recharge in any local shop anywhere.

Everytime I come back here and look my Cingular services and bill, I just keep thinking how much they are ripping me off!

All because of competition!

Posted by Nari Kannan at March 27, 2006 10:46 PM

I love the rhetorical question.

We all know those 2 CEO's will have been chatting about:

*Introducing the ‘Google’ approach of allowing thier staff 20% of their week to do what the hell they want
*They will be excitedly talking about how they ‘love’ their customers
*They will be brainstorming how they can give all the budget to front line staff who interact with the customer
*They will be unable to contain their enthusiasm as they talk about board meetings where all board members wear casual clothes thanks to that ban they introduced as forward thinking CEO's on stuffy black suits and ties.
*They will be passionately pushing their latest plans to recruit more women managers
*They will be introducing simplicity as their mission statement ……

Oh I am sorry guys … I just woke up ….. I just got lost in my dreams for a few moments. Back to reality I guess… Now where is that black suit and nice white shirt?

Posted by Trevor at March 28, 2006 5:12 AM

Having used every major telecom company over the past 10 years, I promise you that the customer wasn't factored in any way, shape or form. Ever try to read your business's telephone bill? I defy you to explain the charges to me. In fact, I have asked my past and present telecom companies to come in and explain it to me and a bright staff, and they have yet to succeed.

Let's not even mention support . . .

Posted by S. Anthony Iannarino at March 28, 2006 6:12 AM

The Customer is Number 1.... And then I woke up!

Posted by Bob Hail at March 28, 2006 7:49 AM

A CEO pal of mine sat next to Henry Ford one night at a White House dinner. (Years ago, obviously.) He sat in silence as Henry talked about various heads of state he was buddies with. Then, my friend told me, he woke up with a start in the middle of the night with an incredible realization, "Tom, I sat next to Mr Ford for three hours, and he never once mentioned cars."

It shows to this day, eh? (BTW: The pal was Limited Inc founder Les Wexner.)

Posted by tom peters at March 28, 2006 8:37 AM

Meanwhile Apple is #1 in BusinessWeek - iPOD - MAC you name it - they are in tune w the customer - Starbucks is up there too.

Posted by Sean at March 28, 2006 8:50 AM

I'd like to suggest one merger/acquisition where I think some of the people were actually thinking about the consumer. Disney & Pixar. I say this mainly because of Lassiter. The man is a true Disney geek, and I believe that, even if he was thinking only of his personal joy of making Disney's parks and animation better, he was thinking of the consumer.

Posted by Mike Jacka at March 28, 2006 9:10 AM

Tony Benn - Labour Party Politician 81 years old and my political hero of all time talks of his meeting with Henry Ford's son in the 1970's when Mr Benn was Britain’s Minister for Trade. Mr Benn says it was ‘like the King visiting a Parish Councilor.’ Benn says Ford simply told him that unless Britain joined the EU he would pull the plug on all Ford car production in Britain. It was absolutely nothing to do with ‘customers’ - everything to do with ego, ‘power’ and money. Sounds like father like son to me Tom.

Posted by Trevor at March 28, 2006 9:52 AM

Ford though Trevor owns Volvo and Jaguar and Land Rover - so EU ease of sales is important - '05 $2 Billion net Ford Co profit. Customers ego power and finance sit at the table together - simple as that.

I take Tom's quote to mean the senior Ford may have been bored by cars, cars, cars - people/politic talk though is always quite fascinating - especially the latest on who is sleeping together.

Love those Land Rovers and Ford 500's and most Volvos - Jags Nyet.

Posted by Sean at March 28, 2006 10:05 AM

Here's an article concerning mergers that I think may be of interest:
Nine Steps to Prevent Merger Failure from Harvard Business School Working Knowledge
http://hbswk.hbs.edu/item.jhtml?id=5271&t=finance&wkrss=y

Posted by Shelley at March 28, 2006 10:10 AM

Point taken Sean but I still believe - and I know I am in a minority on this Blog - that ‘humility’ and a ‘people focus’ always have been and always will be the best attributes of truly great leaders. I have always said that if you look after your people and your customers through integrity then the bottom line looks after itself. Now that is simple.

Just realised by the way ... I drive a Renault!! - Heresy!!! Me a proud Brit in a French Car!!! – Whatever next – We Brits will be hugging each other soon!!!

Posted by Trevor at March 28, 2006 10:36 AM

And me in an Infinity made in Japan w Japan parts and what is a small Cad doing in the garage too [GM support?] - wonder what Tom drives - Lexus hybrid?

Posted by Sean at March 28, 2006 11:15 AM

It seems they've been thinking about growth. I've been thinking about growth, too. I put together a few of my developing ideas at http://facilitatedsystems.com/weblog/2006/03/more-on-growth.html .

I sense the two sets of concerns may mesh. Thoughts?

Posted by Bill Harris at March 28, 2006 11:51 AM

What about the case for spin-offs? Rather than growth for such companies through acquisitions/mergers, wouldn't 10 Lucents/Alcatels in focused niches drive real growth (or drive underperforming sectors into the dustpin)?

Posted by David at March 28, 2006 12:05 PM

David! I love your suggestion of creating growth through spin-offs rather than merger. It makes sense. Rather than merging "to survive" in the existing market, give your best and brightest an opportunity to create new markets. Innovate! I love it.

BTW, my guess is that Tom's ride is a Range Rover.

Posted by Troy Worman at March 28, 2006 4:26 PM

MY RANDOM RANTS

Urge to Merge.
Bigger the Messier!
Lucatel or Alcent???
5K-15K job cuts???
Confuse or Convince the consumer!!??
FORTUNE 500 rank from 'x' to '+/-x'
More revenues (and costs) to play around with???
THRIVING in telecom or DEPRIVING in telecom???
Tactic or Frantic???

I guess most of the above would remain unanswered! As long as the CEOs know their answers....well & good. Amen!

Posted by K.Sriram at March 29, 2006 1:09 AM